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IA-CEPA – Indonesia Australia – Comprehensive Economic Partnership Agreement

Release Date

03 October 2012

Negotiations now in progress

The announcement of the commencement of IA-CEPA negotiations follows the release of the Joint Feasibility Study on an Indonesia-Australia Free Trade Agreement in April 2009 and the entry into force of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). It is expected that the IA-CEPA will build on the outcomes of the AANZFTA.

In a ground-breaking initiative, ACCI, AIBC and our Indonesian counterparts, KADIN and IABC, were contracted to established a Business Partnership Group (BPG) to develop joint Indonesia-Australia business positions on the opportunities for much greater trade, investment and business cooperation, reducing impediments to doing business and how the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) can facilitate two way and joint business.

The BPG consists of the leading Chambers in Australia and Indonesia and include Australian Chamber of Commerce, Kadin Indonesia,(Indonesia’s peak Chamber) Indonesia Australia Business Council and the Australian Indonesian Business Council. This is a new way forward to develop trade co-operation between the two nations. Furthermore this is the first time bi-lateral and leading Chambers have been at the “table” to ensure both countries business communities are represented and are comprehensively involved  to set the agenda for an this agreement, that will insure industry of both nations gets a ‘voice’ and a ‘position’ through this partnership.

There are some key opportunities for partnership that can be developed between Indonesia and Australia. The two countries have resources and capacities that complement each other’s needs. The gains from trade and liberalization will be highest if the two trading countries are complementary trading partners.

Economic partnership opportunities encompass, in summary:

Developing cross-border, integrated industries and value chains in both goods and services that utilise the comparative advantages of each country to supply both domestic and third country markets in ways that neither country could achieve on its own.

Enabling greater sharing of knowledge and technology through harmonising standards and regulations; recognising qualifications; recognising intellectual property rights; establishing dispute resolution mechanisms; building education, training and professional development cooperation; facilitating joint ventures and business licensing; and encouraging movement of skilled people between the two countries.

Facilitating economic cooperation through an enhanced program of development assistance that is focused on building economic capacity, developing skills, sharing market information, enabling market access, facilitating development of value chains, building local businesses and enhancing cooperation between government development assistance activities and the private sector.

Building two-way investment by developing competitive markets, lowering barriers, reducing risks and promoting investment opportunities, including joint ventures.

The objectives of IA CEPA should be broader than FTA. It should also reflect more advanced commitments than the AANZFTA.  It will be an economic partnership between Indonesia and Australia in a comprehensive manner with emphasis on joint efforts between the two countries’ governments, relevant organisations, businesses and universities as well as capacity building in areas that will have a strategic impact on bilateral relations.

Your chamber is aiding the forward motion of these agreements and alongside member organisations from Indonesia allowing both counties and businesses in both regions move forward together.  

If you would like to raise any issues or have any questions based on this new proposed agreement please contact Mr Ian Bennett, Senior Manager, International Trade.

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