Antara News·Indonesia·Tuesday, October 6, 2026 at 10:10 AM UTC

ICA-CEPA to boost Indonesian MSME exports to Canada: Kadin

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Fitra Ashari, Yashinta Difa

Jakarta (ANTARA) - The Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) could serve as a pivotal driver for domestic MSMEs to expand exports to the Canadian market, according to the Indonesian Chamber of Commerce and Industry (Kadin).

Speaking at a joint webinar held by the Kadin Indonesia Institute and the Asia Pacific Foundation of Canada on Tuesday, Chair of the Kadin Indonesia-Canada Bilateral Committee Millie Lukito highlighted the immense untapped potential for Indonesian exports despite a growing bilateral trade deficit.

Trade between the two nations reached approximately US$3.5 billion from January to August 2026, marking a 15.5 percent increase compared to the same period in 2025.

However, Indonesia’s exports accounted for just US$1.1 billion of that total, compared to US$2.4 billion in Canadian imports.

“We are certainly not starting from scratch," Millie said, stressing that the agreement must go beyond policy framework to deliver practical tools for smaller businesses.

"We have many established Indonesian SMEs with superior products and capabilities. However, they lack the networks, market knowledge, and infrastructure to enter the Canadian market. This is where I believe the ICA-CEPA can make a real difference,” she added.

A primary hurdle remains low awareness, with roughly 84.4 percent of Indonesian businesses currently unfamiliar with the terms of the agreement.

Despite this gap, domestic interest in Canadian trade is high, with nearly two-thirds of surveyed businesses having already identified specific sectors for potential collaboration.

To bridge the gap, Millie called for clear, practical guidance for MSMEs, including information on high-demand product lines, Harmonized System (HS) codes, compliance standards, product certifications, and direct access to local Canadian distributors.

She further suggested leveraging the Indonesian diaspora network in Canada, which already possesses established logistical, warehousing, and local distribution capabilities, as a bridge for domestic MSMEs.

Moving forward, Kadin urged officials to measure the success of the ICA-CEPA not by high-level diplomatic milestones or signed memoranda, but by concrete economic indicators—including initial shipments, repeat export orders, and sustained foreign direct investment.

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