Jakarta. Trade between Indonesia and Canada remains below its potential despite nearing $7 billion annually, with both countries looking to their newly signed comprehensive economic partnership agreement (ICA-CEPA) to unlock greater opportunities in energy, aerospace, agriculture, and technology, Canadian Ambassador to Indonesia Jess Dutton said.

“Both sides would agree that our trading relationship has been underperforming. The numbers aren't where they should be,” Dutton said on Thursday in an exclusive interview with Jakarta Globe.

Dutton said Indonesian businesses have significant room to expand in the Canadian market, particularly in agriculture, textiles, manufacturing, fabrics, sustainable forestry, and products from small and medium-sized enterprises.

“Indonesian furniture is world-renowned. So, I think there are lots of opportunities there,” he said.

For Canada, Dutton pointed to energy, clean technologies, and aerospace as among the sectors offering the greatest potential in Indonesia. He described Indonesia as one of the world's largest aerospace markets, with substantial growth expected in the coming years, while Canada is a major global player in the industry.

Canada completed its ratification of the agreement in May, while Indonesia is expected to follow suit in the coming months through a presidential regulation, Dutton said.

Under the agreement, Indonesia will eliminate or reduce tariffs on 85.9% of its tariff lines for Canadian goods, while Canada will remove duties on 90.5% of its tariff lines.

Indonesia recorded roughly $4.4 billion in trade with Canada in 2025. Indonesian exports to Canada reached almost $1.7 billion, led largely by electrical machinery and equipment, while imports from Canada totaled nearly $2.7 billion.

Dutton said the agreement goes beyond tariff reductions and market access by establishing clearer rules and greater predictability for businesses and investors.

“Companies in both countries and investors need the certainty to go forward with long-term investment decisions,” he said.

The agreement includes provisions covering critical minerals, small and medium-sized enterprises, agricultural protocols, and sanitary and phytosanitary dialogue.

Dutton also sees opportunities for Indonesian companies to invest in Canada, noting that the two economies share similarities as major commodity and resource producers.

Indonesian companies have shown interest in Canadian potash mines, while Indonesian-linked resources group, Royal Golden Eagle (RGE), has already invested in a liquefied natural gas project in British Columbia and is discussing an expansion, he said.

“There are a number of companies here that have the expertise and experience in key sectors where I think Canada is now, and will become, a much more attractive market,” Dutton said.

Looking forward, the ambassador said both countries should aim for substantially higher trade and investment figures over the next decade, with emerging sectors such as artificial intelligence and clean technology potentially deepening economic integration.

“Of course, we want our trade numbers to go up. We want more Indonesian companies to invest in Canada and vice versa, and I think we will see that over the next decade,” he said.