ASIATODAY.ID, OTTAWA – Indonesian President Prabowo Subianto and Canadian Prime Minister Mark Carney witnessed the signing of several landmark memoranda of understanding between Indonesia and Canada at West Block, Parliament Hill, Ottawa, September 24, 2025. The event marked a historic milestone in President Prabowo’s state visit to Canada.
During the ceremony, the two nations signed three strategic agreements covering trade, defense, and business-to-business cooperation. These agreements not only strengthen bilateral ties but also pave the way for broader and more sustainable collaboration in the years to come.
Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA)
The first agreement was the signing of the ICA-CEPA by Indonesia’s Minister of Trade and Canada’s Minister of International Trade. President Prabowo emphasized the significance of this partnership, both economically and politically.
“I am very pleased to be here for the signing of CEPA. I believe this will be a historic moment and a significant milestone in our bilateral relations,” President Prabowo stated.
Under ICA-CEPA, Canada committed to eliminating 90.5% of import tariffs on Indonesian products, while Indonesia agreed to liberalize 85.8% of its tariff lines. The agreement is projected to:
Boost Indonesia’s exports to Canada to USD 11.8 billion by 2030,
Contribute an additional 0.12% to Indonesia’s GDP growth,
Increase foreign direct investment by 0.38%,
Ensure regulatory transparency, strengthen investment protection, and promote cooperation in MSMEs, digital marketplaces, intellectual property rights, and sustainable trade.
Defense Cooperation
The second agreement was the signing of a Memorandum of Understanding on Defense Cooperation between Indonesia’s Ministry of Defense and Canada’s Department of National Defense. This MoU builds upon an earlier understanding signed in August 2025 and broadens bilateral defense collaboration, including:
Canada’s participation in the Super Garuda Shield joint military exercise,
Regular defense dialogues,
Long-term development of the defense industry.
President Prabowo highlighted the importance of building human capital through this partnership.
“We would like to send more of our young people to study, be trained, and work together with Canada in the field of defense,” he remarked.
Business Connectivity
The third agreement was the signing of a MoU on Cooperation in Commerce, Trade, and Investment by the Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) and the Chairman of the Business Council of Canada (BCC). Although business-to-business in nature, the MoU complements ICA-CEPA and plays a vital role in intensifying economic cooperation through enhanced connectivity between the private sectors of both nations.
More Than a Ceremony: A Strategic Commitment
President Prabowo’s visit to Canada carried strategic value. Beyond diplomatic symbolism, it resulted in concrete agreements with far-reaching benefits in trade, defense, and business cooperation.
He also underscored the effort and dedication invested in finalizing the agreements.
“We studied 9,000 pages of documents—yes, we stayed up all night. But today, I am proud and grateful to be the President of Indonesia who brings this landmark agreement home,” he said. (AT Network)
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