What are the export opportunities from Canada and Europe?

In the past month, Indonesia successfully signed two trade agreements with the European Union and Canada.

The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) are expected to double export performance in the next few years after implementation.

"Our commitment with business players is to increase total trade and exports to the European Union. Then, for Canada, which is currently US$ 3.5 billion, the hope is that it can double after implementation," said Trade Minister Budi Santoso at the Indonesia-Canada CEPA and Indonesia-European Union CEPA Strategic Forum at the Ministry of Trade in Jakarta, Monday (29/9/2025).

Meanwhile, based on data from the trade ministry, the value of Indonesia's exports to the European Union last year reached US$30 billion, while exports to Canada only amounted to US$3.5 billion.

Indonesia targets these two agreements to be substantially completed and implemented as soon as 2026.

According to Budi, these two trade agreements are an important momentum to strengthen Indonesia's trade position in the global market amid the current uncertain global conditions.

With this agreement, IEU-CEPA can remove up to 98% of tariffs, reduce barriers to trade in goods and services, and open up investment opportunities.

Sectors that benefit from Indonesia include palm oil, textiles, and footwear, while the EU benefits from agri-food products, automotive, and chemical industries.

Meanwhile, through the Indonesia-Canada CEPA, more than 90% or around 6,573 Indonesian tariff posts gained preference in the Canadian market.

Indonesia's potential products such as textiles, footwear, furniture, processed food, light electronics, automotive, and swallow's nest are predicted to become more competitive.

Director General of International Agreement Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono said there are 5,441 export products from Indonesia that will be duty-free to Canada after the signing of the ICA-CEPA trade agreement.

Examples of products are processed food products, cakes, biscuits, bread, and then manufactured products such as cables.

"Then fiber optics, home decoration equipment, spare parts, accessories, automotive, it will all be 0 percent," he said.

The implementation of the 0 percent tariff will be carried out in stages, while, within the next five years, other sectors that will receive this lowest tariff include timber, fruits, processed marine products and so on.

Nano-Nano to Canada

One company that has been exploring exports to Canada is Konimex Group, which has been exporting products to the land of the maple leaf since June 2025.

Konimex Group Chief Strategy Officer Edward Setiawan Joesoef said Konimex products that have entered the Canadian market and become superior products are Nano Nano.

Edward said the problem of whether or not it is difficult to enter the Canadian market all depends on the product, whether the exported product meets the market criteria and is in demand by the people there, the point is that the exported product must have high standards.

"The government has opened trade access through ICA-CEPA, making it easier for businesses to export, the task now is to improve product quality," he said.

He said Canada is known for having one of the strictest food regulation and supervision systems in the world, implemented through the Canadian Food Inspection Agency (CFIA).

"Exporting to Canada is a strategic step for Konimex in expanding international market penetration," he said.

All food products, he explained, must meet high standards in terms of safety, ingredient composition, and nutrition labeling, so not all products can be easily accepted in the market.

While compliance with Canadian export regulations is an initial challenge, it is also a validation of the quality of Konimex products in responding to the demands of the export market.

"With the ICA-CEPA, Konimex's export activities will certainly be easier and run smoothly," he said.

In its presentation, Konimex also collaborated with the Indonesian Trade Attaché in Ottawa, Canada who plays an active role in encouraging the expansion of market access and export facilitation of Indonesian products.

Through this support, Konimex was able to establish exclusive cooperation with distribution partners that will serve as a gateway to enter strategic markets in North and South America, including the United States and Brazil.

Indonesian Ambassador to Canada Muhsin Syihab said the ICA-CEPA trade agreement is a new chapter of Indonesia-Canada trade and the bonus is that it can provide wider access to the North American market.

"ICA-CEPA will encourage Canada to increase investment in Indonesia, especially in the mining, transportation and telecommunications sectors," he said.

According to him, ICA-CEPA makes Indonesia more attractive as a market destination for Canada. The products of the two countries are considered not competing with each other, but complementary. This also opens the door for foreign direct investment (FDI) from Canada.

"This agreement also provides strategic benefits. Indonesia is strengthening its influence in North America, while Canada is gaining a new route into the Southeast Asian market through Indonesia," he said.

Strategic Door

Chairman of the Standing Committee on International Agreements of Kadin and Apindo Mufti Hamka St Rajo Basa said the IEU-CEPA and ICA-CEPA trade agreements that Indonesia has signed are not just export-import issues but strategic doors to encourage investment, strengthen the competitiveness of the national industry while opening new jobs.

Mufti emphasized the importance of the readiness of the private sector, especially UMKM, to be able to meet Canadian and EU market standards. This includes improving product quality, compliance with environmental regulations, and adoption of digital transformation.

"CEPA is not just an instrument to increase export-import but also investment, the scope is very broad," he said.

Meanwhile, Indonesian Palm Oil Association (Gapki) Chairman Eddy Martono said that although tariff barriers have been removed and Indonesia already has a trade agreement with the European Union through the IEU-CEPA, palm oil exports still have to pass through a "high wall" in the form of the European Union Deforestation Regulation (EUDR).

The EUDR is still the main enemy for palm oil players, because the European Union still considers Indonesian palm oil an environmentally unfriendly product. This assumption must be changed.

"IEU-CEPA is good news, but if the EUDR cannot be fulfilled, then zero tariffs are useless. Our exports will still be hampered," Eddy told SUAR in Jakarta (29/9).

Eddy reminded that the key to the success of Indonesia's palm oil exports is not only the elimination of tariffs, but also the ability to fulfill non-tariff regulations. Currently, the government and business players are finalizing strategies so that the implementation of the EUDR does not burden the palm oil industry, especially smallholders.