A Framework Agreement on Comprehensive Partnership and Cooperation was signed on 9 November 2009 and entered into force on 1 May 2014. The agreement provides the basis for regular political dialogue and sectoral cooperation and elevates bilateral relations to a higher level. The agreement provides the legal framework for cooperation in a wide range of policy areas, including human rights, political dialogue and trade. A Sustainable Development Impact Assessment (SIA) to support negotiations on a free trade agreement between the EU and Indonesia was launched in 2018. The HIA aims to assess how the trade and trade-related provisions in the proposed FTA could potentially affect the economic, social, human rights and environmental elements in each trading partner and in other relevant countries. Signed on 28. As of January 1992, more than 99% of the product categories in this trading bloc are already duty-free. For Indonesia`s intra-ASEAN trade activities in 2015, Singapore and Malaysia topped the list in terms of total value with $30.6 billion and $16.1 billion, respectively. The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) was established in 2008. AJCEP liberalizes merchandise trade between Japan and the bloc, especially in areas such as intellectual property, agriculture, fisheries and forestry. These bilateral trade and investment agreements were conceived as building blocks of a future region-to-region agreement. Indonesia also participates in another trade agreement with Japan under the ASEAN-Japan Comprehensive Economic Partnership, which was signed and entered into force in 2008. In addition to tariff dismantling, the agreement also allows for cumulative rules of origin and provides for a dispute settlement mechanism.
The ASEAN Republic of Korea Free Trade Agreement (AKFTA) was signed in 2005 and eliminated more than 90% of tariffs between ASEAN and the Republic of Korea. In addition, the agreement also liberalised the investment process and strengthened cooperation in the field of commercial services. This agreement was signed in 2002 and until 2004, Indonesian exports were open to the Chinese market. About 90% of tariffs on imported goods have been reduced or abolished. The Comprehensive Economic Partnership Agreement between Indonesia and Chile (IC-CEPA) was ratified in October 2019. Under the agreement, Chile abolished 89% of tariffs on Indonesian products, while Indonesia abolished 86% of tariffs on imports from Chile. Indonesia is a member of the free trade agreement between ten ASEAN member states and China. The original framework was signed on 4 November 2002. Under the agreement, which entered into force on January 1, 2010, China and the original six ASEAN members – Indonesia, Malaysia, Brunei Darussalam, the Philippines, Singapore and Thailand – have sought to reduce import duties on more than 90 percent of traded goods. This agreement, which entered into force in 2011, covers the member countries of the D-8 Economic Cooperation Organization, namely Indonesia, Malaysia, Bangladesh, Pakistan, Iran, Egypt, Turkey and Nigeria.
The deal, also known as the D-8, was signed in 2008 and includes Malaysia, Iran, Indonesia, Pakistan, Nigeria, Bangladesh, Egypt and Turkey. Tariffs between these countries have been reduced by 25 to 8 per cent for various products. Following fruitful exploratory discussions aimed at further deepening EU-Indonesia trade and investment relations, the EU-Indonesia held talks on 18 October. July 2016 Start of negotiations on a free trade agreement between the EU and Indonesia. The aim is to conclude a free trade agreement that facilitates trade and investment and covers a wide range of issues, including tariffs, non-tariff barriers, trade in services and investment, trade aspects of government procurement, competition rules, intellectual property rights and sustainable development. A Free Trade Agreement (FTA) will develop a key aspect of overall EU-Indonesia relations, which will be framed by the Partnership and Cooperation Agreement. The agreement entered into force on 1 May 2014. Indonesia is a party to the Association of Southeast Asian Nations (ASEAN) Free Trade Zone. ASEAN and thus Indonesia have also concluded preferential trade agreements with Australia, China, Hong Kong, India, Japan, Korea and New Zealand and concluded textual negotiations on the Regional Comprehensive Economic Partnership in November 2019.
Indonesia has signed bilateral free trade agreements (FTAs) with Australia, Chile, Mozambique, Iceland, Liechtenstein, Norway and Switzerland under the European Free Trade Association, but none of these free trade agreements other than Chile are still in force until the end of 2019. Indonesia recently concluded negotiations with Korea on a Comprehensive Economic Partnership Agreement. Indonesia is negotiating new free trade agreements with the European Union (EU), India, Tunisia and Turkey and is reviewing its trade agreements with Japan and Pakistan. The ASEAN-India Free Trade Area (AIFTA) was signed in 2009, resulting in one of the largest free trade agreements in the world. The agreement abolished tariffs on 90% of products traded between the two regions, including products such as palm oil, pepper, tea and coffee. Like the ASEAN-Japan Comprehensive Cooperation Agreement, the establishment of a free trade area between ASEAN member states and South Korea, which entered into force in 2007, aims to boost trade by removing tariff and non-tariff barriers. Indonesia has a significant annual volume of trade with South Korea; $16 billion in 2015. Relations between the EU and Indonesia have deepened in recent years. Following fruitful exploratory discussions in April 2016 aimed at further deepening the EU-Indonesia trade and investment relationship, negotiations on an EU-Indonesia Free Trade Agreement were launched on 18 July 2016. So far, nine full rounds have been played. Indonesia has been a member of the WTO since 1995 and benefits from trade preferences granted under the EU`s Generalised System of Preferences (GSP), which imposes lower tariffs on around 30% of total imports from Indonesia.
Indonesia, as a member of ASEAN, has also concluded a free trade agreement with Australia and New Zealand. .