Ministry of Trade to Ratify ICA-CEPA via Regulation of the President

The Ministry of Trade will ratify the Indonesia-Canada Comprehensive Economic Partnership Agreement (“ICA-CEPA”) through Regulation of the President (Perpres). Minister of Trade Budi Santoso explained that a Perpres was chosen due to the urgency of the global geopolitical situation and Canada’s readiness.

“The government proposed a Regulation of the President because Canada is, in fact, already ready. The provisions of the ICA-CEPA are already aligned and do not conflict with national laws and regulations,” said Budi. 

Ratification via Perpres, Budi continued, can serve as a technical foundation for implementation, particularly regarding the implementation of import tariffs and rules of origin. Harmonization of export and import regulations is also necessary to ensure effective implementation.

Commission VI of the House of Representatives of the Republic of Indonesia (“DPR”) requested that the Ministry of Trade notify the DPR during the drafting of Perpres for ratification. This is in accordance with the mandate of Article 84, paragraph 7 of Law Number 7 of 2014 on Trade.

“The House of Representatives must be notified,” said Adisatrya Suryo Sulisto, Deputy Chair of Commission VI of the DPR.