Indonesia, Canada sign agreements on trade, defense, business

Prime Minister Mark Carney of Canada and President Prabowo Subianto of Indonesia witnessed the signing of three Memoranda of Understanding (MoUs) between the two countries.

 

Jakarta (Indonesia Window) – The Indonesian and Canadian Governments signed three Memoranda of Understanding (MoUs), witnessed by President Prabowo Subianto and Prime Minister Mark Carney, at the West Block, Parliament Hill, Ottawa, on Wednesday (Sept. 24).

The newly-inked MoUs on trade, defense, and business marked a significant milestone in strengthening bilateral relations and expanding new and sustainable collaborations between the two countries.

The first MoU concerning the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) was signed by the Indonesian trade minister and his Canadian counterpart, the Indonesian Cabinet Secretariat reported on Thursday (Spt. 25).

According to Indonesia’s President Prabowo, the strategic cooperation between his country and Canada, as outlined in the CEPA, has tremendous value to both the economic and political sectors.

“I am delighted to be here for the signing of CEPA. I believe this will become a historic moment. It will prove to be a significant milestone,” the president said before the signing.

For the record, ICA-CEPA marks an important milestone in the economic relationship between Indonesia and Canada since it provides legal certainty and expands market access for both countries.

Through this agreement, Canada has been committed to eliminating 90.5 percent of import tariffs on products from Indonesia, while the latter is offering liberalization on 85.8 percent of heading.

Implementation of ICA-CEPA is projected to boost Indonesia’s export to Canada by 11.8 billion US dollars in 2030, as well as to increase the national GDP by 0.12 percent and investment by 0.38 percent.

In addition, the agreement provides guarantee to regulatory transparency and investment protection, as well as strengthens cooperation in Micro, Small, and Medium-sized Enterprises (MSMEs) empowerment, digital marketplaces, intellectual property rights, and sustainable trade.

The second MoU was between defense ministers of both countries regarding cooperation on defense sector which complements the MoU signed in August 2025, and expanding the scope of defense cooperation between the two countries.

It covers Canada’s participation in the Super Garuda Shield exercises, the implementation of regular defense dialogues, and the long-term strengthening of the military industry.

On that occasion, President Prabowo expected to strengthen defense collaboration with Canada by sending Indonesian youth to learn and train in the North American country.

Afterwards, the MoU on Cooperation in Commerce, Trade, and Investment between the Indonesian Chamber of Commerce and Industry (Kadin) and Business Council of Canada (BCC) was signed.

This MoU carries significant meaning in promoting intensification of economic cooperation between the two countries through business-to-business connectivity, aligned with the spirit of establishing the ICA-CEPA.

President Prabowo also expressed the hard work that had gone into finalizing this cooperation.

“We went through 9,000 pages of agreement documents. Yes, that’s right. We stayed up all night. And here we are witnessing and signing this important agreement. So I am very proud, and I feel very fortunate to be the President of Indonesia who brings this home to Indonesia,” he said.

Reporting by Indonesia Window