President Prabowo Subianto witnessed the signing of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) after a face-to-face meeting with Canadian Prime Minister Mark Carney at the West Block of Parliament Hill, Ottawa, on Wednesday (September 24, 2025). The signing was carried out by Trade Minister Budi Santoso and Canadian International Trade Minister Maninder Sidhu. During the meeting, it was stated that the agreement would address trade barriers between the two countries.
“This is the first bilateral trade agreement with an ASEAN country,” said Mark Carney in his remarks.
He also ensured that the agreement, which will be implemented in 2026, will be a game-changer for trade between Indonesia and Canada.
“This will be a game-changer. When fully implemented, it will mean that 95% of trade tariffs from Canada to Indonesia will be reduced or eliminated,” said Carney.
According to Carney, all trade will be offered at preferential tariffs or lower import duties, thus making his country’s exports more competitive.
“It will clearly make our exports much more competitive and give Canadian workers and businesses greater access to a market of over 300 million people, with a GDP of $2 trillion, which will grow rapidly thanks to your policies,” said Mark Carney.
Everything will be offered at preferential tariffs, which will clearly make our exports much more competitive and give Canadian workers and businesses greater access to a market of over 300 million people, with a GDP of $2 trillion, which will grow rapidly thanks to your policies.
On the other hand, President Prabowo appreciated the importance of the ICA-CEPA as a strategic economic and political partnership between the two countries. Furthermore, this agreement will be a historic moment. In fact, Prabowo even joked during the process of drafting this cooperation agreement. According to information gathered, the implementation of the ICA-CEPA is projected to increase Indonesian exports to Canada to US$11.8 billion by 2030. It will also increase GDP growth by 0.12%. This agreement will strengthen defense cooperation between the two countries. This includes Canada’s participation in Super Garuda Shield, regular defense dialogues, and long-term support for strengthening cooperation between the two countries’ military industries. Prabowo explained that Indonesia will send students to train in the defense sector. “We want to send more of our young people to study here, to be trained here, and to collaborate in the defense sector in the future,” Prabowo said in his remarks.
From a business perspective, this includes business-to-business (B2B) cooperation between Indonesian and Canadian entrepreneurs. The signing of this agreement was carried out by the Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, along with representatives from the Canadian Chamber of Commerce and Industry (BCC).
“We welcome the signing of the agreement with the Canadian Council on Foreign Relations, which is part of this effort to strengthen ties between businesses in both countries,” said Mark Carney. “We are also preparing a trade mission as part of this agreement, and this will strengthen our trade relationship.”
In addition to economic benefits, the ICA-CEPA also provides greater legal certainty for businesses, including regulatory transparency, investment protection, and a commitment to empowering MSMEs, digital marketplaces, intellectual property rights, and sustainable trade.
September 25, 2025, CNBC Indonesia
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