The ICA-CEPA Signing marks a major step forward in Indonesia–Canada relations. President Prabowo Subianto’s visit to Ottawa on September 24, 2025, highlights the importance of this milestone. The Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) is expected to expand trade, attract investment, and enhance diplomatic ties between the two nations.
ICA-CEPA Signing Strengthens Indonesia-Canada Partnership
President Prabowo’s agenda in Ottawa began with a meeting with Canada’s Governor General Mary Simon at Rideau Hall. He then held a private conversation with Canadian Prime Minister Mark Joseph Carney at East Block, Parliament Hill. During this visit, Prabowo witnessed the formal ICA-CEPA Signing, signaling a new phase of cooperation between Jakarta and Ottawa.
Negotiations for ICA-CEPA started on June 21, 2021, and concluded in November 2024. The official signing took place on September 24, 2025, after years of preparation. The agreement is designed to go beyond tariff reductions, opening opportunities for collaboration in investment, technology, and economic diplomacy. It reflects a shared commitment to strengthen bilateral ties at a time when global supply chains demand more resilience.
President Prabowo’s Role in Economic Diplomacy
Prabowo’s presence at the ICA-CEPA Signing underlines his role in shaping Indonesia’s economic diplomacy. The visit followed his participation at the United Nations General Assembly in the United States. Foreign Minister Sugiono emphasized the significance of the Ottawa stop, saying, “He will depart on his way back to Jakarta and make a stop in Ottawa, Canada, for an official visit and to witness the signing of the Indonesia-Canada CEPA on the 24th (of September), as planned.”
By backing ICA-CEPA, Prabowo demonstrates Indonesia’s determination to diversify its export markets. Overreliance on a handful of countries leaves the economy vulnerable to shocks. This agreement helps Indonesia gain a stronger foothold in North America while reinforcing its global trade credibility.
Export and Import Opportunities Under ICA-CEPA
The agreement creates new openings for exporters on both sides:
Indonesia’s main exports to Canada include:
- Natural rubber
- Vehicle parts
- Cocoa products
- Machinery
Canada’s main exports to Indonesia include:
- Wheat
- Chemical fertilizers
- Wood pulp
- Soybeans
- Precious metals
With ICA-CEPA, these products gain improved tariff access, enhancing competitiveness in each other’s markets. The balance of opportunities highlights ICA-CEPA’s potential to create long-term economic benefits for both sides.
ICA-CEPA as a Gateway to Global Markets
Canada offers more than just new trade flows. With high purchasing power and rigorous quality standards, its market is a proving ground for exporters. Indonesian products that succeed in Canada will gain recognition and credibility in other developed markets. This credibility could ease entry into the United States and European Union.
At the same time, ICA-CEPA supports Canada’s ambition to secure stronger links in Southeast Asia. Indonesia, as the region’s largest economy, is seen as a key partner in this strategy. The agreement, therefore, serves a dual role: it strengthens bilateral cooperation while positioning Indonesia as a strategic hub in global supply chains.
A Strategic Step for Indonesia’s Future Trade
ICA-CEPA Signing represents more than a diplomatic symbol. It is a strategic step toward a stronger, more diversified economy. Yet, success will depend on Indonesia’s ability to prepare at home. Domestic industries must adapt to global standards, logistics systems must improve, and supportive policies must be in place to ensure fair benefits.
After his meetings in Ottawa, Prabowo departed Canada on the same day and continued his international tour to the Netherlands. Foreign Minister Sugiono expressed optimism about the broader trip, saying, “Hopefully this trip will go smoothly, and the outcomes from the meetings will be productive and beneficial for the progress of our nation.”
ICA-CEPA has opened the door to a new era of economic cooperation. With leadership from President Prabowo and readiness at home, Indonesia now stands to gain stronger global credibility and wider market access for its products.
Source: cnbcindoneisa.com, news.detik.com
Image: Freepik
