Indonesia's Prabowo, Canadian PM Carney Ink Three Major Bilateral Deals

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September 25, 2025 | 10:36 am

TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto met with Canadian Prime Minister Mark Carney at the West Block, Parliament Hill, in Ottawa on Wednesday, September 24, 2025, to reaffirm the longstanding friendship between the two nations.

Following the meeting, Prabowo emphasized Indonesia’s appreciation for Canada’s role as a mature and responsible Western power that demonstrates empathy for global development issues.

“Canada has consistently contributed to poverty alleviation programs, health initiatives, as well as agriculture and fisheries assistance,” Prabowo said, as quoted in a statement from the State Secretariat on Thursday, September 25.

Beyond development, Prabowo also underscored the shared history of Indonesia-Canada cooperation in global peace efforts. He praised Canada’s consistent leadership in promoting international stability and order.

“Traditionally, Canada has shown years of wise and stable leadership, which we deeply value,” he remarked.

Three Key Agreements

During the visit, Prabowo and Carney witnessed the signing of three major agreements covering trade, defense, and business cooperation.

The most notable was the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), signed by the Indonesian Minister of Trade and Canada’s International Trade Minister.

Prabowo highlighted the deal as a “historic milestone” that strengthens both economic and political ties between the two countries.

According to the Presidential Office, ICA-CEPA will provide legal certainty and expand market access. Under the agreement, Canada will eliminate 90.5 percent of import tariffs on Indonesian products, while Indonesia will liberalize 85.8 percent of tariffs.

The pact is projected to boost Indonesia’s exports to Canada to US$11.8 billion by 2030, contribute an additional 0.12 percent to national GDP, and increase investment by 0.38 percent.

It also promotes regulatory transparency, investment protection, and enhanced cooperation in MSME empowerment, digital trade, intellectual property rights, and sustainable business practices.

The leaders also witnessed the signing of a memorandum of understanding (MoU) between the Indonesian Ministry of Defense and Canada’s National Defense Department.

Building on an earlier MoU signed in August 2025, this agreement expands defense cooperation to include Canadian participation in the Super Garuda Shield joint exercises, regular defense dialogues, and long-term military industry collaboration.

Prabowo also expressed interest in deepening exchanges in defense education and training.

“We want to send more of our young people here to study, train, and collaborate in the defense sector going forward,” he said.

In addition, the Indonesian Chamber of Commerce and Industry (KADIN) and the Business Council of Canada (BCC) signed an MoU on cooperation in commerce, trade, and investment, paving the way for stronger private-sector partnerships.

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