New Opportunities For MSMEs To Military Industry, Indonesia-Canada Agree To Strengthen Cooperation

Presiden Prabowo Subianto (left) dan Perdana Menteri Kanada Mark Carney memberikan pernyataan bersama setelah pertemuan bilateral di West Block, Parliament Hill, Ottawa, Kanada, Rabu (24/9/2025). (dok Setneg)

JAKARTA - The Comprehensive Economic Partnership Agreement between Indonesia and Canada (ICA-CEPA) was signed by representatives of two countries at West Block, Parliament Hill, Ottawa, Canada, Wednesday, September 24 local time, witnessed by President Prabowo Subianto and Canadian Prime Minister (PM) Mark Carney.

ICA-CEPA, which was signed by the Minister of Trade of Indonesia Budi Purwanto and Canadian Trade Minister Maninder Sidhu, is one of several cooperation documents signed by Indonesia and Canada in a series of official visits by President Prabowo to Ottawa.

"I am very happy to be here for the signing of CEPA and I think this will be a historic moment. This will prove to be a significant milestone (for relations between Indonesia and Canada, ed.)," said President Prabowo at West Block, Parliament Hill, Ottawa, Wednesday, as quoted from the official broadcast of the Presidential Secretariat confirmed by ANTARA, Thursday, September 25.

The Presidential Secretariat, in the same official broadcast, explained that the ICA-CEPA is an important milestone in Indonesia and Canada's economic relations. ICA-CEPA also provides legal certainty, as well as expanding market access for both countries.

In the agreement, Canada is committed to eliminating 90.5 percent of import rates for products from Indonesia, while Indonesia provides 85.8 percent liberalization of tariff posts.

PM Carney, after the signing, called the ICA-CEPA a game changer. "With this agreement, 95 percent of our exports to Indonesia will be more competitive in their market. President Prabowo and Canada open up huge economic opportunities for our workers, and a more prosperous life for our two nations," said PM Carney.

ICA-CEPA implementation is also projected to encourage Indonesia's exports to Canada to reach 11.8 billion US dollars by 2030, with an additional national GDP growth of 0.12 percent and an increase in investment of 0.38 percent.

Not only that, the ICA-CEPA agreement also guarantees transparency of regulations, investment protection, and strengthens cooperation in the fields of empowering MSMEs, digital marketplaces, intellectual property rights, and sustainable trade.

In the same ceremony, President Prabowo and PM Carney also witnessed the signing of a Memorandum of Understanding (MoU) between the Ministry of Defense of the Republic of Indonesia and the Canadian Ministry of National Defense on Cooperation Activities in the Defense Sector.

The memorandum of understanding was completed by two countries in August 2025, and expanded the space for defense cooperation between the two countries.

In the memorandum of understanding, Canada also stated its commitment to send troops to participate in joint exercises with Super Garuda Shield (SGS), then carry out dialogues on defense regularly, and strengthen the two-state military industry in the long term.

The Memorandum of Understanding on Defense Cooperation, we appreciate this. We appreciate our relationship with Canada. We want to send more of our young people to study here, be trained here, and work together in the defense sector in the future," said President Prabowo.

Another document that was also signed was the MoU for trade and investment between the Indonesian Chamber of Commerce and Industry and the Business Council of Canada (BCC).