Indonesia and Turkey Accelerate Trade Agreement Negotiations

Strategic Move Towards Comprehensive Economic Partnership

Indonesia is taking significant steps to accelerate and expand its Preferential Trade Agreement (PTA) with Turkey as a precursor to a Comprehensive Economic Partnership Agreement (CEPA). This development was announced by Indonesia's Deputy Trade Minister, Dyah Roro Esti, during a bilateral meeting with Turkey's Deputy Trade Minister, Mustafa Tuzcu, on the sidelines of the 4th D-8 Council of Trade Ministers Meeting in Cairo, Egypt, on December 2, 2025.

Key Focus Areas of the Agreement

The Indonesian government is particularly keen on ensuring that key sectors such as textiles, footwear, and steel are included in the expanded agreement. This focus is driven by the desire to distribute the benefits of the trade agreement more evenly across various industries. Deputy Minister Esti emphasized the need for sufficient flexibility in the negotiations to prevent the product coverage from becoming too narrow.

Economic Implications and Future Prospects

The accelerated PTA is seen as a strategic move to strengthen economic ties between Indonesia and Turkey. By broadening the scope of the trade agreement, both countries aim to enhance bilateral trade and create new opportunities for businesses in both nations. The eventual CEPA is expected to further deepen economic cooperation, potentially covering areas beyond trade, such as investment and regulatory cooperation.