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  1. Negotiations

Indonesia


Indonesia signed a major comprehensive FTA with Japan in 2007. In February 2012, it signed a preferential trade agreement with Pakistan which the two governments intend to turn into an FTA. But the Pakistan government has reportedly refused to start new negotiations until its concerns on the existing agreement are addressed.

Right now, Indonesia is negotiating trade deals with Australia, Chile, EFTA (European Free Trade Area), the European Union, Korea, India and Ukraine. It has also expressed an interest to join the Transpacific Partnership (TPP) and to establish a free trade zone with the Eurasian Economic Union. Since 2012, Jakarta is part of the controversial Regional Comprehensive Economic Partnership (RCEP) talks with the nine other ASEAN (Association of South-East Asian Nations) governments and their six FTA partners: Australia, China, India, Japan, New Zealand and South Korea.

As member of ASEAN, Indonesia is also party to the group’s FTAs with Australia and New Zealand, China, India, Japan and Korea, as well as the ASEAN Economic Community.

Following a growing discontent against the investor-state dispute settlement (ISDS) mechanism, whereby foreign investors can seek compensation in an arbitration tribunal if new laws or regulations negatively affect their investment potential, Indonesia decided in 2014 to phase out 67 of its bilateral investment treaties. The government has terminated 20 treaties so far and has been developing a new model BIT that would supposedly reflect a more balanced approach between the country’s right to regulate and foreign investor protection.

last update: October 2016
Photo: IGJ

New analysis of US-Indonesia trade deal in light of repealed tariffs
27-Feb-2026     Public Citizen
This so-called ‘deal’ is a one-sided neocolonial trap that locks Indonesia into binding, economy-wide concessions to benefit large U.S. corporate interests.
The Indonesia-US Trade Agreement on Reciprocal Tariffs threatens Indonesia's food and national sovereignty
24-Feb-2026     Serikat Petani Indonesia
Serikat Petani Indonesia (SPI) believes that the Indonesia-US ART has the potential to narrow the scope of national policy in protecting the agricultural and food sectors, has direct and fundamental implications for the direction of national agricultural policy, food sovereignty, and the livelihoods of small farmers, even threatening the sovereignty of the Indonesian state.
Critics warn US–Indonesia trade deal could undermine renewable energy push
24-Feb-2026     Tanah Air
A new trade agreement between Indonesia and the United States has sparked sharp criticism from climate advocates, who warn that a commitment to purchase up to USD 15 billion worth of American fossil fuels could undermine Indonesia’s renewable energy transition
US and Indonesia finalise deal to cut tariffs to 19%
20-Feb-2026     BBC
President Donald Trump's administration and the Indonesian government say they have finalised an agreement, under the deal, Indonesia will cut trade barriers on more than 99% of American imports - including agriculture, healthcare, seafood, technology and car-related goods.
GCC, Indonesia seek to finalize trade talks this year
28-Jan-2026     Arab News
The Gulf Cooperation Council and Indonesia are aiming to finalize their free trade agreement in 2026, trade officials said on Saturday as they wrap up the fourth round of negotiations.
After years of progress, Indonesia risks ‘tragedy’ of a deforestation spike
21-Jan-2026     Mongabay
Indonesia is facing a deforestation crisis that threatens its global environmental achievements, as the rate of forest loss surged again in 2025—reaching the highest level since 2019. Major projects like the Merauke Food Estate, which plans to clear 2 million hectares of forest in South Papua, are at the center of concerns.
Pakistan and Indonesia strengthen trade ties through new agreement
12-Jan-2026     Daily Times
Pakistan and Indonesia have agreed to deepen their economic partnership by signing a Memorandum of Understanding to establish the Indonesia–Pakistan Joint Trade Committee, aiming to enhance dialogue and facilitate bilateral cooperation.
Indonesia-US trade deal: analyst warns of retaliation from China, EU
7-Jan-2026     Jakarta Globe
Indonesia’s impending trade deal with the US offers generous concessions to American businesses but risks retaliation from key partners like China and the EU. Analysts warn that the deal’s asymmetry may disrupt trade stability as other nations demand equal treatment or retaliate.
Indonesia signs trade deal with Russia’s Eurasian bloc amid US tariffs
22-Dec-2025     Jakarta Globe
Indonesia and the Russia-backed Eurasian Economic Union (EAEU) have just signed a free trade pact, a document that is expected to act as a cushion against rising US protectionism.
Report: US-Indonesia minerals deal threatens sovereignty, labor rights, and the environment
15-Dec-2025     Public Citizen
A new report released by Public Citizen and Indonesian environmental organization Satya Bumi exposes how the Trump administration has used the threat of sweeping tariffs to force Indonesia to accept an “agreement” that threatens to dismantle its hard-won progress toward reclaiming control of its mineral wealth — while allowing labor abuses, environmental destruction, and corporate impunity to continue.