Jakarta. Indonesia is hoping to ink a trade pact with Canada later this year, although the two governments have yet to set a date, according to a senior official on Monday.

Both countries had substantially concluded the negotiations for their bilateral comprehensive economic partnership agreement (CEPA) last December. Under this deal, Canada agrees to drop a significant chunk of tariffs on Indonesian goods. Jakarta will also enjoy a similar treatment for its Canada-bound exports.

The Southeast Asian economic giant’s market diversification efforts have been in full swing, even more so after the US country-specific tariff hikes hit the globe. 

Jakarta had just sealed a trade in goods agreement with Peru on Monday. It is now eyeing a similar pact with Canada in 2025. The agreement with Ottawa will also be more comprehensive, as the document also deals with investment facilitation.

“We will soon tap into the North American market with the upcoming [Indonesia-Canada] CEPA,” Djatmiko Bris Witjaksono, a director-general at the Trade Ministry, told a news conference in Jakarta.

“We are still looking for the right time to ink the document. Because both of our heads of state will witness the signing,” Djatmiko said, alluding to a future meeting between President Prabowo Subianto and Canadian Prime Minister Mark Carney.

As part of the agreement, Indonesia will see a trade liberalization of up to 90.5 percent of the total tariffs for goods entering the Canadian market. Indonesia’s Canada-bound exports totaled $1.4 billion in 2024.

Indonesia-Canada trade hit nearly $3.6 billion last year, with Jakarta running a $693.2 million deficit. Bilateral trade totaled nearly $2.3 billion between January and June 2025, representing a 27% increase from around $1.8 billion over the same period in 2024. Indonesia’s first-half trade deficit widened from $398.1 million to $497.8 million, according to the ministry's statistics.

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