Trade agreement with Indonesia a win for business

Asialink Business welcomes the conclusion of negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)

  • IA-CEPA creates new opportunities for Australian businesses in one of the largest and most dynamic economies in the world
  • Education, vocational training, tourism, health and aged care are among the winners
  • Establishing a stronger investment presence in Indonesia will be a key to success

(Melbourne, 3 September 2018) Asialink Business, Australia’s National Centre for Asia Capability, welcomes the successful conclusion of negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), announced by Prime Minister Morrison and Minister Birmingham on 31 August 2018. As we move into a new chapter of the relationship, strengthening and diversifying Australia’s investment presence in Indonesia will be one of the keys to unlocking the benefits of this long-awaited agreement.

Asialink Business CEO, Mukund Narayanamurti, says the IA-CEPA has potential to deliver strong benefits to businesses and communities in both countries, while deepening our economic cooperation with one of the largest and most vibrant economies in the world.

“Australian exporters of highly-traded goods like beef, grains, dairy and steel are set to benefit. But it’s the new wins - for our services industries like education, tourism and health and aged care -  that are particularly exciting,” Narayamurti says.

“Take education, which is already a key pillar of the bilateral relationship: Under the IA-CEPA, Australian universities will have more opportunities in Indonesia. Likewise, thanks to this agreement, Australian vocational education and training providers will now also be able to form new partnerships with local Indonesian businesses, to provide quality skills training.

“It is also a win for the tourism industry, locking-in 100% Australian ownership of 3, 4, and 5 star resorts.

“To translate these opportunities into success, our businesses will need to ensure they understand and align with the industry priorities and skills requirements of our Indonesian partners.

"We also need to grow and diversify the investment relationship, which remains low in absolute and relative terms, if Australian businesses are to establish a stronger anchor in this competitive market,” Narayanamurti says.

President of the Australia Indonesia Business Council, and Asialink Business Senior Consultant, Phil Turtle says:

“The IA-CEPA will be a strong driver for enhancing the historically 'underdone' trade and investment relationship between our countries...This will enable Australia and Indonesia to be true partners in many ways, striving for the joint economic prosperity of both countries.

"This story though has a long way to go, and there remains a big job to do to truly transform this vitally important and rewarding relationship with our friends and neighbours in Indonesia."

Practical resources for Australian organisations doing business in Indonesia are available here.

Asialink Business is the National Centre for Asia Capability. We support organisations in all sectors of the economy to develop the critical skills, knowledge and networks needed to better understand and do business with Asia. Find out more at: asialinkbusiness.com.au  

(ENDS)

Media contacts:
Heather Chai, Head of Communications & Public Relations
Heather.chai@asialinkbusiness.com.au Mob: 0423 035 277