Indonesia Fta Agreements


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Indonesia has signed and implemented a number of free trade agreements with countries and regions around the world as an independent market and as a member state of the Association of Southeast Asian Nations (ASEAN). Among the agreements, in addition to the trade agreements already in force, Indonesia has also signed a cooperation that is not yet involved, namely the trade preference system of the Organization of the Islamic Conference, in which 35 countries participate. The parties recognize that economic development, social development and environmental protection are interdependent. In Chapter 8, they reaffirm their commitment to multilateral contracts and principles in the environment and work and commit to a level of protection by recognizing the right of each party to set its own level of environmental and labour protection. Arbitration procedures do not apply to this chapter. In 2016/2017, Indonesia is Australia`s second largest recipient of development aid, with nearly $300 million. Australia has also forged closer defence relations with Indonesia since 2005, under the Lombok Treaty, and has worked more closely with Indonesia since the 2002 Bali bombings, which killed 88 Australians, and the fight against human trafficking. Australia is also bound by a series of regional forums and agreements with Indonesia. Both nations are members of the ASEAN G20 Regional Forum and the 2009 Free Trade Agreement between Australia and New Zealand and ASEAN. An agreement with a closer economic partnership between Indonesia and Australia is being negotiated, based on existing agreements. Indonesia applies the most favoured nation status to Australian imports, while Australia applies equivalent concessions through its tariff in developing countries.

Indonesia is the sixth country in the region to enter into negotiations for a bilateral free trade agreement with the EU, after Singapore (2010), Malaysia (2010), Vietnam (2012), Thailand (2013) and the Philippines (2015). To date, the EU has concluded negotiations on bilateral agreements with two of them: Singapore (2014) and Vietnam (2015). Bilateral free trade agreements between the EU and ASEAN countries will form the building blocks of a future EU-ASEAN agreement, which remains the EU`s ultimate goal. Indonesia is also negotiating the following trade agreements: these bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. A free trade agreement (FTA) will establish a key aspect of economic relations between the EU and Indonesia, which is governed by the Partnership and Cooperation Agreement.

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