Indonesian Ambassador to Canada, Mohsin Shihab, emphasized the need to expedite the implementation of the Comprehensive Economic Partnership Agreement (ICA-CEPA) between Indonesia and Canada, which is anticipated to come into effect in the second half of 2026. This announcement was made during an Indonesia-Canada business meeting held in Montreal, where over 100 representatives from the private sectors of both countries gathered.
Ambassador Shihab confirmed that this agreement aims to facilitate business activities between Indonesia and Canada, open new export opportunities for Indonesian products, and encourage Canadian investments in Indonesia. This meeting coincided with the SIAL Canada 2026 exhibition, which is considered an important platform for promoting Indonesian products.
Event Details
The business meeting in Canada witnessed broad participation from entrepreneurs across various sectors, including food and beverages, financial services, energy, and creative industries. This event was organized as part of the economic diplomatic efforts undertaken by the Indonesian embassy in Canada to enhance trade and investment between the two nations.
Ambassador Shihab pointed out the significance of this agreement, which was signed during Indonesian President Joko Widodo's visit to Ottawa in September 2025, expressing hope that the Canadian government would expedite the ratification process.
Background & Context
Indonesia is considered one of the largest economies in Southeast Asia and is striving to strengthen its trade relations with developed countries like Canada. In recent years, trade relations between Indonesia and Canada have seen notable growth, as Canada seeks to expand its partnerships in the Pacific region.
The ICA-CEPA agreement is viewed as a strategic step to enhance economic cooperation between the two countries, aiming to improve market access and facilitate the movement of goods and services, reflecting both parties' commitment to strengthening bilateral relations.
Impact & Consequences
If the agreement is implemented as planned, it will lead to a significant increase in trade volume between Indonesia and Canada, contributing to the enhancement of the Indonesian economy through increased exports. It will also encourage Canadian investments in Indonesia, potentially creating new job opportunities and boosting economic development.
The anticipated positive impact of this agreement may also extend to small and medium-sized enterprises (SMEs) in Indonesia, providing them with the opportunity to access new markets and increase their exports.
Regional Significance
The economic relations between Indonesia and Canada serve as a model for Arab countries, which can benefit from Indonesia's experiences in enhancing their economic partnerships with developed nations. Furthermore, strengthening trade between Indonesia and Canada may open new avenues for cooperation between Arab countries and Indonesia, especially in areas such as agriculture and renewable energy.
In conclusion, this development represents an important step towards enhancing economic cooperation between Indonesia and Canada, contributing to sustainable development in both countries.