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Canadian Prime Minister Mark Carney and Indonesian President Prabowo Subianto held talks on Saturday to discuss the ongoing conflict in the Middle East and its potential effects on global energy markets and the broader world economy. The leaders also focused on strengthening economic cooperation between Canada and Indonesia through expanded trade and investment opportunities.
A key topic of discussion was the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA), which was signed in September and is expected to be ratified soon. The landmark agreement represents Canada’s first bilateral trade deal with a member of the Association of Southeast Asian Nations (ASEAN), marking a significant step in deepening economic ties between the two countries.
The Canada-Indonesia CEPA is designed to reduce trade barriers, improve transparency, and create a more predictable framework for business and investment. The agreement is expected to generate new opportunities for Canadian companies and workers across several high-growth sectors, including clean technology, agri-food, infrastructure, critical minerals, and financial services.
Under the agreement, more than 95% of Canada’s current exports to Indonesia will eventually benefit from reduced or eliminated tariffs. This move is expected to boost the competitiveness of key Canadian products such as wheat, potash, soybeans, and wood products in one of Southeast Asia’s largest and fastest-growing economies.
During the conversation, Carney also emphasized Canada’s commitment to accelerating negotiations for a broader Canada-ASEAN Free Trade Agreement, with the goal of reaching a conclusion in 2026. He welcomed Indonesia’s continued support for advancing the regional trade initiative, highlighting the importance of stronger economic partnerships across the Indo-Pacific region.
Both leaders reaffirmed their commitment to maintaining close communication and working together to promote economic growth, trade expansion, and regional stability. The discussion reflects growing momentum in Canada-Indonesia relations as both nations seek to strengthen cooperation amid evolving global economic and geopolitical challenges.
