On this page
- Financial services opportunities in Indonesia
- Financial services
- Trade in services
- Investment
- Temporary movement of natural persons
- Provincial and territorial interests
Financial services opportunities in Indonesia
Indonesia’s financial services sector is one of the fastest-growing in the Indo-Pacific region, fueled by rising household income levels, and rapid urbanization and digital banking adoption. In 2023, Indonesia’s financial and insurance sector contributed approximately $74.3 billion to the Indonesia’s GDP (4% of GDP), showing a steady growth trend since 2014.
In 2023, Canada exported approximately $93 million in commercial services, which include financial and insurance services, to Indonesia. The CEPA presents an opportunity for Canadian financial institutions to expand their footprint in Indonesia’s evolving financial sector thanks to enhanced investor protections and modern commitments on regulatory transparency and the processing of applications.
Indonesia’s financial consumers prioritize efficiency, security, and access to global investment opportunities, making Canadian financial firms well-positioned to introduce the wealth of Canadian knowledge and expertise into the Indonesian market. Moreover, Indonesia’s commitment to sustainable finance and financial inclusion creates opportunities in Indonesia for Canadian companies offering green investment strategies.
Financial services
The CEPA introduces key protections and market access improvements for Canadian financial service providers operating within Indonesia’s regulatory framework. The Agreement enhances access for banking, insurance, and asset management firms through provisions that establish clearer standards and regulatory transparency measures, allowing Canadian companies to offer financial products directly in Indonesia’s market and providing greater certainty for firms considering new or deepened investments in the country.
Trade in services
The Agreement facilitates transparency in financial regulations, providing Canadian firms with predictable operating conditions in Indonesia. It also creates opportunities for Canadian fintech and payment service providers, enabling greater participation in Indonesia’s rapidly evolving digital finance ecosystem. Additionally, the CEPA expands opportunities for companies providing technical expertise, allowing Canadian firms to contribute to Indonesia’s banking modernization, investment diversification, and financial risk management efforts.
Investment
The CEPA strengthens investment protections for Canadian financial institutions expanding operations in Indonesia by ensuring security for financial sector investments through a commitment not to withdraw any benefits from any established financial institutions and protection against expropriation without compensation. Through the Non-Conforming Measures Annexes, the CEPA introduces transparency by showing which investment regulations apply. It also provides stronger financial market policies, enhancing predictability for Canadian firms entering Indonesia’s financial service sector and supporting a more stable investment environment. Additionally, Canadian firms benefit from access to investor-state dispute settlement (ISDS), which provides an impartial legal recourse in case of investment disputes and helps contribute to a stable investment environment.
Temporary movement of natural persons
The CEPA facilitates business travel for Canadian financial professionals by enhancing transparency and facilitating temporary entry. Banking and financial services executives benefit from simplified travel regulations, allowing them to enter Indonesia for market expansion and investment activities.
Provincial and territorial interests
Ontario is Canada’s financial epicenter, anchored by Toronto, one of the world’s top financial hubs. The province hosts major banks, insurance firms, asset managers, and fintech innovators.
Quebec’s financial services sector is centered in Montreal. The province excels in insurance, asset management, and fintech, and is increasingly active in sustainable finance.
Alberta is emerging as a fintech and blockchain innovation hub. Calgary and Edmonton are key centers for investment banking, asset management, and corporate finance, especially tied to the energy sector. With CEPA improving regulatory transparency, investment protections, and market access, Ontario, Quebec, and Alberta-based firms can expand into Indonesia’s fast-growing financial ecosystem.
British Columbia’s financial services sector includes insurance, wealth management, and a growing fintech ecosystem. Vancouver is a gateway to Asia and hosts firms with expertise in Environmental, Social and Governance (ESG) investing, green finance, and digital payments. CEPA’s support for sustainable finance and fintech participation aligns with British Columbia’s strengths.