On this page
- Mining and energy opportunities in Indonesia
- Investment
- Temporary movement of natural persons
- Trade in services
- Provincial and territorial interests
Mining and energy opportunities in Indonesia
Indonesia has one of the largest mineral reserves in the world, with mining and quarrying industry contributing $174 billion to Indonesia’s GDP in 2024 (7.4%). Indonesia presents a dynamic landscape for Canadian mining investors, offering access to one of the world’s richest reserves of nickel, copper, gold, and other critical minerals essential to industrial development and the global energy transition.
With a government-led push to develop downstream processing and value-added industries, particularly in battery materials and green technologies, Canadian firms with expertise in sustainable mining, engineering services, and mineral processing are well-positioned to contribute. The CEPA supports the creation of a clear and predictable framework for bilateral investment, facilitating opportunities for Canadian energy, mining, and technology companies in Indonesia. It also provides opportunities for Canadian sustainable mining technology companies. Indonesia’s push toward greener mining practices and responsible resource extraction aligns well with Canada’s global expertise in eco-friendly mining technologies, regulatory compliance, and environmental stewardship.
Indonesia possesses significant oil and gas reserves but needs substantial foreign investment and advanced technology to support exploration and development. To strengthen national energy security and reduce reliance on imported oil products, the Indonesian government is intensifying efforts to increase its oil and gas production and refining capacity. In addition to refinery development, Indonesia is also prioritizing increased oil and gas exploration and production to meet growing domestic demand. Much of Indonesia’s remaining reserves are more technically challenging to access and beyond the current capabilities of Indonesia’s state-owned enterprises.
Canadian firms investing and offering services related to oil and gas exploration, field development, production optimization, and environmental management are well-positioned to contribute to Indonesia’s energy sector. CEPA’s provisions enhance certainty, reduce regulatory barriers, and protect investments, helping Canadian energy service providers and investors engage with Indonesia’s evolving energy market.
Investment
The Agreement strengthens protections accorded to Canadian mining and energy investments in Indonesia. It provides safeguards against expropriation without compensation, enhancing the ability to invest with confidence in long-term projects. 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. These protections reduce investment risks, create a more predictable business environment, and encourage Canadian mining and energy companies to expand their operations in Indonesia’s resource-rich regions.
Temporary movement of natural persons
The CEPA facilitates business travel for Canadian mining and energy professionals by reducing certain restrictions and streamlining entry requirements. Investors benefit from bound access as they oversee extraction and processing projects, ensuring efficient operations. Additionally, executives and investors experience fewer barriers when traveling to Indonesia to assess opportunities for joint mining ventures, fostering stronger partnerships and investment growth in the mining and energy sectors.
Trade in services
The CEPA enhances predictability and regulatory transparency for Canadian mining- and energy-related industry providers. Canadian mining- and energy-related sectors are likely to benefit from the CEPA in related services sectors such as engineering services including geotechnical engineering, environmental engineering, safety engineering, and research and development.
Provincial and territorial interests
Alberta is Canada’s energy epicenter. CEPA’s investment protections and ISDS provisions support Alberta businesses with long-term energy projects and mineral processing ventures. Alberta’s interest in expanding upstream services, environmental technologies, and carbon management aligns with CEPA’s outcomes on trade in services and regulatory transparency.
CEPA’s alignment with Indonesia’s push for green mining and battery materials supports British Columbia’s innovation-driven firms. The British Columbia’s mining sector’s interest in expanding mining engineering, digital surveying, and eco-friendly extraction aligns with CEPA’s trade in services and intellectual property protections.
Newfoundland and Labrador’s offshore oil and gas sector contributes significantly to the provincial economy, with strengths in deepwater exploration, drilling services, and marine engineering. CEPA’s provisions on upstream services and investment protections support Newfoundland and Labrador’s firms in entering Indonesia’s expanding offshore energy market.
CEPA’s commitments on engineering services align with Ontario’s strengths in mining R&D, automation, and sustainable extraction.
CEPA’s provisions on investment protection and trade in services support Quebec’s firms in mineral exploration, mining, and environmental engineering.
As a global supplier for mineral exploration, mining engineering, digital surveying, mining equipment, and mining R&D, automation, and sustainable extraction, Saskatchewan businesses in this field also stand to take advantage of the CEPA.