Indonesia has concluded a free trade agreement with the European Free Trade Association (EFTA). EFTA is an intergovernmental organisation representing Iceland, Liechtenstein, Norway and Switzerland. The agreement covers a wide range of issues, including the trade in goods and services between the two parties, investment protocols, mutual acknowledgement of intellectual property rights and participation in future government procurement initiatives.

In 2017, total merchandise trade between Indonesia and the EFTA bloc amounted to $2.3 billion. Of this, Indonesia’s EFTA-bound exports totaled $1.7 billion while its imports from the four-string trading group was $597 million.

Indonesia is hoping for a series of trade agreements. For Indonesia, trade agreements with partner countries can increase the export value and increase market share. With such agreements in place Indonesia expects its exports of textile and textile products to increase three-fold.

The industry in Indonesia wants downstream products to be protected from the onslaught of imports. One agreement Indonesia has is with Australia. Another is the Regional Comprehensive Economic Partnership, a proposed free trade agreement between Asean and China, India, Japan, South Korea, Australia and New Zealand. Yet another is with the European Free Trade Association. Agreements with Mozambique, Tunisia and Morocco are expected to be completed soon.