Relations between Canada, a North American country, and Indonesia, the largest member of the Association of Southeast Asian Nations (ASEAN), are growing by leaps and bounds. The two countries have been negotiating a bilateral Comprehensive Economic Partnership Agreement (CEPA) since 2021.
“Negotiations for a Canada-Indonesia Comprehensive Economic Partnership Agreement will soon be concluded, which will further strengthen bilateral relations,” said Canadian Ambassador to Indonesia Jess Dutton at a reception to celebrate the 157th anniversary of the agreement.th Canada Day at the Fairmont Hotel in Jakarta on July 3.
“Both Indonesia and Canada are very rich in natural resources and biodiversity. They are both democratic countries with pluralistic societies. Relations between Canada and Indonesia are growing strongly.”
Canadian Prime Minister Justin Trudeau congratulated all Canadians on Canada Day, July 1.
“Together, let’s continue to improve this incredible place we call home. Let’s make our communities more vibrant, vibrant and inclusive. Let’s break down barriers and create opportunities for all. Let’s build a future where every generation has a fair chance, no matter who you are, where you come from, how you pray or who you love. And let’s work together to deliver on the promise of this country – a promise of peace, freedom, prosperity and fairness,” Trudeau said in a message.
A successful conclusion to the CEPA negotiations will provide Canadian business access to a growing market in Southeast Asia. The CEPA would eliminate or reduce tariff and non-tariff barriers, improve access to Southeast Asian supply chains, and establish a more transparent and predictable environment for trade and investment.
For many years, Canada and Indonesia have enjoyed a strong partnership in many areas, including trade and investment, good governance, human rights, religious freedom and pluralism, poverty reduction, counter-terrorism and security capacity building, and the prevention of human trafficking and illegal migration.
Indonesian Minister of Agriculture and Land Management Agus Harimurti Yudhoyono was the guest of honor at the reception.
“Our friendship with Canada is based on mutual trust and our bilateral trade is growing. I wish you all a happy Canada Day,” Mr. Agus said in his speech.
Economic links
Bilateral trade between Indonesia and Canada has been very impressive. In 2022, trade amounted to US$4.22 billion, a significant increase from US$2.66 billion in 2017. But trade decreased slightly to US$3.44 billion in 2023.
Indonesia mainly exports machinery, electrical equipment, knitted garments, rubber, cocoa, coffee and footwear to Canada. It imports fertilizers, wheat, cereals, wood pulp, oilseeds, meat, aluminum and machinery from Canada.
Indonesia is currently ranked 2nd as a destination for Canadian foreign direct investment (FDI) in Southeast Asia with a total investment reaching $5.7 billion. Canadian direct investment in Indonesia is mainly channeled into the energy and mining, financial services, hospitality, infrastructure and information technology sectors.
Indonesian direct investment stock in Canada stood at $126 million.
Since 2000, Canada has provided over $1 billion in official development assistance to Indonesia and remains committed to supporting its development priorities and the achievement of the Sustainable Development Goals. This includes a focus on promoting green, sustainable and inclusive economic growth, climate change mitigation and adaptation, and promoting the empowerment and rights of women and girls.
Canada is not only a good friend of Indonesia, it is also a strategic partner of ASEAN.
“Canada has a vital partnership with ASEAN. I wish all Canadians a happy Canada Day,” said Canadian Ambassador to ASEAN Vicky Singmin at the reception.
In May this year, senior ASEAN officials and Canadian officials met in Ottawa and discussed ways to deepen ASEAN-Canada cooperation in areas such as maritime cooperation, transnational crime, cybersecurity, trade and investment, micro, small and medium-sized enterprises (MSMEs), digital transformation, sustainable development, renewable energy, food security, environment and climate change, women’s empowerment, people-to-people contacts, education, health, disaster management, connectivity, bridging the development gap, smart cities and infrastructure.
The two sides also exchanged views on regional and international issues of common concern, including the importance of maintaining ASEAN’s central role in the evolving regional architecture.
On April 30, Canadian Prime Minister Trudeau spoke by phone with Indonesian President-elect Prabowo Subianto to congratulate him on his election victory. He also commended the strong turnout of the Indonesian people and their continued commitment to democracy.
“The two leaders discussed areas of mutual interest and the growing bilateral relationship between Canada and Indonesia, including strong economic ties. They reaffirmed their support for the ongoing negotiations around the Canada-Indonesia Comprehensive Economic Partnership Agreement and looked forward to the Team Canada trade mission to Indonesia later this year,” the Prime Minister’s Office said in a statement.
“The Prime Minister and the President-elect discussed the continued implementation of Canada’s Indo-Pacific strategy. They also discussed opportunities for cooperation on critical minerals and stressed the importance of working together to strengthen support for the rules-based international order.”
Canada’s Indo-Pacific Strategy provides a 10-year framework to manage Canada’s relationships with countries in the region to address shared priorities, rooted in our commitment to protecting the security of Canadians and Canada’s strategic interests. It is a platform on which to cultivate important key relationships, including in the North Pacific with ASEAN, as well as with India.
Trudeau hopes to further strengthen the Canada-Indonesia partnership after Prabowo takes office in October.
Indonesia and Canada established diplomatic relations on October 9, 1952. Canada was a trusted friend of Indonesia before 1952. It helped Indonesia gain international recognition for its independence from the Dutch colonial power in 1945.
Indonesia and Canada cooperate in regional and international forums where both countries share common interests, such as the Asia-Pacific Economic Cooperation (APEC), the ASEAN Regional Forum (ARF), the G20 and the United Nations. They also provide mutual support in other international forums where both countries are members.
