Jakarta. Indonesia is pursuing a double taxation agreement with Ireland, according to a senior government official, as Jakarta doesn’t want to trail behind its ASEAN neighbors.

The treaty is expected to prevent investors from having the same income stream taxed twice in the investment-hungry Indonesia and their home country. It also divides up each country’s right to tax.

According to Edi Prio Pambudi, a deputy at the Coordinating Ministry for Economic Affairs, the deal will enable businesses to “avoid high costs”.

“We hope we can get this deal soon. This is the best way to make our trade with Ireland more efficient,” Edi told reporters in Jakarta on Friday.

“There are some ASEAN nations that have already had the double taxation pacts [with Dublin]. As the bloc’s largest economy, we [Indonesia], of course, wouldn’t want to fall behind.”

Edi said Indonesia would not need to change its domestic tax laws if it signs the agreement.

Indonesia already has tax treaties in place with China, the UK, and Singapore, to name a few. There are also anti-double taxation mechanisms with other EU members such as the Netherlands, Germany, and Spain.

The Irish government reported to have inked double taxation agreements with Singapore, Vietnam, Thailand, and Malaysia. Their agreements mainly cover income tax, although the scope for the Malaysian and Thai documents includes petroleum income tax.

Preventing double taxation would give an extra boost to Jakarta’s tariff-slashing mega trade pact with the European Union (EU), which is bound to enter into force next year.

Irish Ambassador to Indonesia Sharon Lennon also viewed the EU trade pact as a solution to the existing non-tariff barriers and blockages.

“This agreement is the culmination of a decade of work of listening to businesses on creating the most efficient and equal playing field,” Lennon said.

Indonesia-Ireland trade amounted to $228.6 million in 2025, while the seven-month commerce already reached $145.5 million so far this year as of July.

Jakarta registered almost $26.4 million of investment inflows from Ireland in the first half of 2026. 

Both sides also inked a letter of intent meant to boost cooperation on the economic front that day.

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