Jakarta. Indonesia’s newly signed trade deal with Canada is expected to supercharge the country's dream of developing an integrated electric vehicle or EV ecosystem, according to a senior government official, as the agreement opens up the possibility of Jakarta importing lithium. 

President Prabowo Subianto’s recent world tour ended on a high note as Indonesia secured a comprehensive economic partnership agreement (CEPA) with Canada. The document, which Prabowo claimed to be 9,000 pages long, covers major tariff eliminations. Trade Ministry’s director-general Djatmiko Bris Witjaksono said Monday that the CEPA included a chapter on "critical mineral dialogue”.

“This [dialogue] will become a platform for our countries to expand our cooperation in critical minerals. … This is the first time that we have a critical mineral dialogue under a CEPA framework,” Djatmiko told a forum on the Indonesia-Canada CEPA.

Later that day, Djatmiko revealed to the press that the partnership between the two G20 economies would cover the entire value chain. In other words, it is expected to encompass the creation of the finished goods, although considering that the pact only got signed last week, the dialogue was still at a nascent stage.

“This will create some sort of a ‘powerhouse’ between the two countries. … So the partnership will not only deal with the lowest level of the value chain [of critical minerals], but also the highest. We have already started discussing it,” the Indonesian negotiator said.

Djatmiko did not deny when asked by the Jakarta Globe if the dialogue could lead to Indonesia buying Canadian lithium. Canada is home to one of the world’s largest reserves of lithium, the silvery-white metal essential for making EV batteries. He said: “[Such lithium import] is possible, … and even EV battery production. Anything is possible.”

The partnership would begin with a dialogue first, Djatmiko said, alluding that they were still far from any import deals.

“We will then identify each other’s needs and gaps. … We will pinpoint the projects that are the most feasible. … The CEPA has facilitated [this dialogue]. That’s why businesses must take advantage of this."

According to a 2025 report by the US Geological Survey, Canada holds 1.2 million metric tons in lithium reserves. Indonesia does not have lithium reserves. Like Indonesia, Canada also possesses nickel, although not as much as the Southeast Asian country. Indonesia’s nickel reserves reach 55 million metric tons, much bigger compared to Canada’s 2.2 million metric tons. Work is underway to build an EV ecosystem in mineral-rich Indonesia as the country seeks to capture value out of its abundant natural resources by producing finished goods. Indonesia is also opening its doors for foreign investors. Indonesia also broke ground on a $5.9 billion EV battery manufacturing project in Karawang earlier this year -- a megaproject backed by China’s CATL.

Ottawa has promised to remove 90.5 percent of its import tax on Indonesian goods under the agreement. In exchange for the zero tariffs, Indonesia will also provide a trade liberalization of up to 85.8 percent for Canadian goods. Trade Minister Budi Santoso said that the agreement could “double the current trade figures” once it enters into force. Official data showed annual bilateral trade topped $3.5 billion in 2024. 

“If God is willing, the ratification process will finish by mid-2026,” Budi told reporters.

The ratification process will see both countries' lawmakers turn the agreement into a legally binding instrument.

Read More: Indonesia to Source Lithium from Australia as EV Ambitions Accelerate
 

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