JAKARTA, Dec 2 - Indonesia and Canada signed a Comprehensive Economic Partnership Agreement (CEPA) on Monday, aimed at strengthening economic ties between the two G20 nations. The agreement, which follows three years of negotiations, is set to take effect in 2026.
During a joint press conference, Indonesia's Trade Minister Budi Santoso expressed gratitude for Canada's support in prioritizing Indonesia's critical minerals sector, crucial for sustainable growth. He emphasized the collaboration in managing critical minerals to support Indonesia's net zero target by 2060 and to attract Canadian investment.
Indonesia, rich in deposits of tin, copper, and bauxite, is the world's largest source of nickel ore. The country aims to increase the value derived from its minerals by attracting investments in processing and electric vehicle battery manufacturing.
In addition to the agreement with Canada, Indonesia has engaged with the United States regarding a multinational mineral security partnership and reached a collaboration agreement with Britain on critical minerals in September.
According to Indonesia's trade ministry, two-way trade between Indonesia and Canada amounted to $3.4 billion last year, with estimates of $5.1 billion for 2023. Canada's primary exports to Indonesia include agricultural products and fertilizers, while Indonesia mainly exports machinery, electrical machinery, garments, and footwear.
Canadian Prime Minister Justin Trudeau and Indonesian President Prabowo Subianto discussed enhancing cooperation in fisheries, manufacturing, and renewable energy during their meeting at the Asia-Pacific Economic Cooperation (APEC) leaders' summit in Peru last month.