Indonesia is set to enjoy significant benefits from the implementation of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), particularly through the elimination of import tariffs. Under this agreement, as many as 5,441 Indonesian products will gradually receive 0% tariffs when entering the Canadian market. This development opens wide opportunities for Indonesian exports such as processed foods, biscuits, spare parts, cables, and automotive components to penetrate Canada without tariff barriers. The tariff reduction will be phased in, with sectors such as wood, fruits, and seafood gaining early access within the first five years, followed by a broader range of products—including tyres, footwear, textiles, home appliances, and furniture—within ten years.
The trade partnership is already showing strong momentum: in the first seven months of 2025, Indonesia’s exports to Canada reached USD 1.02 billion, contributing to a bilateral trade volume of USD 2.72 billion. In 2024, the two countries recorded a total trade of USD 3.58 billion, marking a 48.7% increase compared to 2020. The tariff elimination is expected to further strengthen Indonesia’s competitive edge, reduce trade imbalances, and ensure that Indonesian products are more firmly positioned in the global market. In the long run, the ambitious goal is to secure 95% product inclusion under the zero-tariff scheme, paving the way for Indonesia to flood the Canadian market with a wide variety of goods.
