Indonesia and Ireland are taking further steps to strengthen their bilateral economic relationship following the Strategic Dialogue on Strengthening Bilateral Trade and Investment Cooperation, held in Jakarta on 4 September.
The meeting brought together representatives from government, diplomatic missions, and the business community to discuss opportunities for expanding economic cooperation and identifying practical measures to strengthen trade and investment ties between the two countries. The dialogue took place at an important time, as the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) moves closer to implementation, creating prospects for greater economic engagement between Indonesia and European markets, including Ireland.
Among the key issues discussed was the absence of a Double Taxation Agreement (DTA) between Indonesia and Ireland. The Indonesian side expressed its interest in advancing discussions towards such an agreement, which could help reduce tax-related barriers, improve certainty for businesses, and facilitate cross-border trade and investment.
The dialogue also identified several sectors with significant potential for further cooperation, including digital technology and artificial intelligence (AI), renewable and clean technology, sustainable finance, agri-food and nutrition, pharmaceuticals and healthcare, and aviation. These areas represent opportunities for businesses and institutions in both countries to explore new commercial relationships, exchange expertise, and develop mutually beneficial initiatives.
A key outcome of the meeting was the signing of a Letter of Intent (LoI) on the Development of Economic and Business Cooperation. The agreement establishes a framework for advancing shared economic priorities and encouraging more concrete collaboration among government bodies, businesses, and relevant institutions in Indonesia and Ireland.
With bilateral trade between the two countries reaching USD 228.6 million in 2025, there remains considerable potential to further expand and diversify economic engagement. Strengthening institutional cooperation, addressing barriers to trade and investment, and creating stronger connections between the private sectors will be important in realising this potential.
The Irish Chamber of Commerce Indonesia (IreCham) welcomes the continued progress in Indonesia–Ireland economic relations and looks forward to supporting these efforts by facilitating stronger business-to-business connections, encouraging commercial engagement, and creating further opportunities for businesses across both markets.
