Indonesian Political, Business & Finance News

UK Support Strengthens, Indonesia Moves Closer to CPTPP Membership

| Source: DETIK Translated from Indonesian | Trade
UK Support Strengthens, Indonesia Moves Closer to CPTPP Membership
Image: DETIK

The Indonesian government is continuing to expand international market access to strengthen national competitiveness and drive economic transformation towards the Golden Indonesia 2045 vision. This effort is being pursued, among other ways, through Indonesia’s accession process to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This step is expected to open up broader trade and investment opportunities while strengthening Indonesia’s position in regional and global supply chains.

“The CPTPP is a trade agreement between economies. The provisions in the CPTPP have generally been agreed upon by us in various international agreements such as within the WTO, RCEP, ASEAN frameworks, and the OECD accession process. Therefore, we only need a few adjustments to laws and regulations to fulfil the commitments in the CPTPP,” said Coordinating Minister for Economic Affairs Airlangga Hartarto in a statement on Friday (3/7/2026).

Airlangga stated that progress in Indonesia’s accession process was marked by an announcement at the 10th CPTPP Commission Meeting held virtually on 26 June 2026. During the meeting, CPTPP Ministers agreed to commence preparatory discussions with the Philippines, Indonesia, and the United Arab Emirates (UAE). This stage is a crucial initial step before the formation of an Accession Working Group (AWG) as part of the process towards full CPTPP membership.

The CPTPP is a high-standard free trade agreement and one of the most strategic trade blocs in the world. Currently, the CPTPP has 12 member countries, including Japan, Canada, Australia, the United Kingdom, Singapore, and Mexico. Collectively, these member countries represent approximately 15 per cent of global Gross Domestic Product (GDP) with a market coverage of nearly 600 million people worldwide. Indonesia’s membership in the CPTPP is expected to open wider access for national export products, increase trade and investment flows, and strengthen Indonesia’s position in regional and global value chains.

In the accession process, Indonesia has also gained support from several CPTPP member countries, including the United Kingdom, which has consistently backed Indonesia’s bid to join the trade bloc. This support was reflected, among other things, through the signing of the Indonesia-United Kingdom Economic Growth Partnership on 19 January 2026 by Coordinating Minister for Economic Affairs Airlangga Hartarto and UK Secretary of State for Business and Trade Peter Kyle. This partnership serves as a practical framework for both countries to strengthen bilateral trade, investment, and economic cooperation. At the same time, the cooperation also affirms the UK’s support for Indonesia’s accession process towards full CPTPP membership.

“This strategic economic cooperation document (EGP) is a tangible manifestation of the commitment of both countries to building inclusive, sustainable, and mutually beneficial economic growth,” said Airlangga. To date, Indonesia has aligned domestic regulations with 22 chapters of CPTPP provisions and submitted the aspirant country questionnaire to the New Zealand Government as the depository country on 12 May 2025. The government is targeting Indonesia to become a full member of the CPTPP by 2027.

Airlangga emphasised that Indonesia continues to prioritise the multilateral route through the CPTPP because it can provide broader market access and support the creation of an open, inclusive, and rules-based trading system. On the other hand, Indonesia also remains open to the possibility of forming Bilateral Free Trade Agreements (FTAs), including with the UK, as an alternative to continue expanding trade cooperation should the multilateral negotiation process at the CPTPP level require a longer time.

Indonesia’s membership in the CPTPP is expected to provide various benefits for the national economy. In addition to expanding market access through reduced tariff barriers and increased trade certainty, CPTPP membership will also open new opportunities for Indonesian exporters to diversify markets. Furthermore, businesses will benefit from simpler customs procedures, modern digital trade provisions, protection of investment and intellectual property rights, and the application of rules of origin that enable closer supply chain integration among member countries. For the public, membership is also expected to provide a wider variety of product choices at more competitive prices.

In line with the direction of President Prabowo Subianto, Indonesia’s accession process to the CPTPP is also a momentum to continue strengthening regulatory reform and simplifying various provisions to improve the ease of doing business and national competitiveness, including for Micro, Small, and Medium Enterprises (MSMEs). In addition to supporting the CPTPP accession process, Indonesia and the UK are also continuing to strengthen cooperation in various strategic sectors through the Economic Growth Partnership, including clean energy, semiconductor industry development, higher education, the digital economy, and human resource development.

The UK is also supporting Indonesia’s accession process to the Organisation for Economic Co-operation and Development (OECD) through the provision of technical support and policy dialogue to help Indonesia meet various international standards as part of the national economic reform agenda. Going forward, the Government will continue to strengthen coordination with all CPTPP member countries and proceed with the various accession stages to ensure Indonesia’s membership process runs according to target. The Government will also continue structural reforms and strengthening national competitiveness so that Indonesia is increasingly ready to seize trade, investment, and global economic integration opportunities through the CPTPP.

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