Indonesia and Canada Target Late-2026 ICA-CEPA Rollout to Unlock $11.8B in Exports

TORONTO, Investortrust.id — Indonesia and Canada are accelerating technical preparations to implement the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) by late 2026, setting the stage for a projected surge in Indonesian exports to $11.8 billion by 2030.

The implementation timeline was finalized during a bilateral meeting between Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto and Canadian Minister of International Trade The Honourable Maninder Sidhu on the sidelines of the Canada Investment Summit in Toronto on Monday, Sept. 14, 2026. The high-level dialogue marks the transition of the pact from legislative ratification toward operational execution.

As global supply chains realign around critical minerals and energy transition security, ICA-CEPA serves as Indonesia’s first comprehensive economic partnership with a North American economy and Canada’s first bilateral deal with an ASEAN member state. For Ottawa, Jakarta acts as an institutional anchor for its wider Indo-Pacific strategy. For Indonesia, the pact unlocks preferential tariff access to high-value North American markets while securing Western capital and technical expertise for domestic mineral refining and renewable infrastructure.

Tariff Dismantling and Long-Term Export Goals

Under the agreed terms, Canada will eliminate or reduce tariffs across more than 90% of its tariff lines for Indonesian shipments, while Indonesia will offer reciprocal relief on nearly 86% of its tariff lines for Canadian imports.

The tariff liberalization is expected to accelerate an already expanding trade corridor. Two-way trade between the two nations has grown at an average rate of 9.13% annually since 2021. Total bilateral trade reached $3.1 billion during the first half of 2025, climbing 13% compared to the same period the previous year.

Officials project that once the agreement enters into force, Indonesian exports to Canada will reach $11.8 billion by 2030. Priority commercial opportunities will focus on critical mineral processing—particularly nickel and battery chemistries—alongside clean energy, sustainable agriculture and fisheries, public infrastructure, and digital financial services.

Resolving Standards and Logistics Bottlenecks

To ensure the benefits reach beyond multinational conglomerates to micro, small, and medium-sized enterprises (MSMEs), both ministers agreed to address lingering regulatory and technical hurdles ahead of full enforcement.

Joint priorities include harmonizing industrial product standards, aligning labor and environmental sustainability benchmarks, and strengthening Indonesian logistics networks to maintain export cost efficiency. Both governments are also establishing structured economic technical cooperation programs and speeding up targeted dialogues on critical mineral integration.

"Today's meeting affirms the joint commitment of Indonesia and Canada to ensure that ICA-CEPA delivers tangible benefits for business players across both countries," Airlangga said on Thursday, Sept. 17, 2026.

During the mission to Toronto, Airlangga was accompanied by Indonesian Ambassador to Canada Muhsin Syihab, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Deputy for International Economic Cooperation Edi Prio Pambudi, and Indonesian Consul General in Toronto Vevie Damayanti.

Mobilizing Regional Private Capital

Beyond intergovernmental meetings, Airlangga addressed regional corporate leaders at the Canada-ASEAN Business Council (CABC) Executive Dialogue and the CABC Reception alongside Canadian Minister of Industry The Honourable Mélanie Joly.

Airlangga noted that both parliaments have concluded formal ratification of ICA-CEPA, shifting work toward finalizing technical rules of origin. He called on North American investors to deploy capital into Indonesian AI infrastructure, food security initiatives, and energy transition assets.

The Indonesian delegation also conducted targeted corporate talks with Canadian multinationals, meeting with AtkinsRealis Chief Executive Ian L. Edwards to discuss commercial nuclear power cooperation and Sun Life Chief Executive Kevin D. Strain to deepen collaboration across domestic financial services.