Jakarta, December 4, 2024 – The Europe Today: The Indonesian Business Council (IBC) and the Business Council of Canada (BCC) have signed a memorandum of understanding (MoU) to bolster cooperation under the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA). The MoU aims to enhance trade and investment relations between the two nations through joint initiatives, research, and policy recommendations.
Speaking at the signing ceremony on Tuesday, IBC CEO Sofyan Djalil emphasized the MoU’s role as a foundation for economic collaboration. “We believe this initiative will open up more potential and opportunities between Canada and Indonesia, especially in strengthening trade and investment relations between the two countries,” Djalil stated.
Goldy Hyder, President and CEO of the BCC, highlighted the ICA-CEPA as a tool for promoting business diversification. “The government has carried out their duties; now it is time for business actors to realize this potential. Canada and Indonesia share the ambition to become economic hubs in the region, and I encourage Indonesia to open business in Canada,” Hyder said.
Advancing Economic Partnership
The ICA-CEPA negotiations, recently concluded, have established agreements on market access for goods, services, and investments. They also address critical areas such as micro, small, and medium enterprises (MSMEs), employment, environmental protections, women’s economic empowerment, and cooperation in critical minerals.
Indonesian Deputy Minister of Trade, Dyah Roro Esti Widya Putri, and Canadian Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, were present at the MoU signing.
Putri noted the potential for expanded economic collaboration between the two countries. “Both Indonesia and Canada are committed to realizing this agreement as soon as possible and hope to sign the agreement in early 2025,” she said.
Mutual Benefits
Minister Mary Ng emphasized the mutually beneficial nature of the partnership, noting that Canada’s economy can contribute in diverse areas, including agriculture, advanced manufacturing, critical minerals, financial services, clean technology, and digital trade.
“When Indonesia’s economy grows, our economy also grows. We can also work together to strengthen national economic resilience through effective natural resource management and industrial downstreaming to increase added value,” Ng said.
Canada also announced a commitment of $25 million over five years to support the implementation of ICA-CEPA, reflecting confidence in the agreement’s potential to strengthen economic ties.
The signing of the MoU and the joint statement on the conclusion of ICA-CEPA negotiations mark a significant milestone in the economic partnership between Indonesia and Canada, promising increased trade and investment opportunities in the coming years.
