8 May 2020
Australia has welcomed Indonesia’s finalisation of the processes required to bring the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) into force.
IA-CEPA will officially enter into force on Sunday 5 July 2020.
Australian Trade, Tourism and Investment Minister Simon Birmingham said the landmark trade deal with Indonesia would enhance export opportunities and deliver significant benefits for both countries, opening up a new era in the economic relationship.
“After discussions earlier this week with my Indonesian counterpart, Minister of Trade Agus Suparmanto, we welcome this step that will see the benefits of this trade agreement flow from 5 July this year,” Minister Birmingham said.
“The economic stresses being caused by COVID-19 in both Australia and Indonesia make this agreement even more important, as it will provide an opportunity to better stimulate growth and investment across both nations during the recovery phase.
“I thank Minister Suparmanto for his enthusiastic assistance, together with our predecessors, our trade negotiators and many stakeholders who have helped to secure this comprehensive agreement.”
Under IA-CEPA, Australia will immediately eliminate all remaining tariffs on Indonesian imports into Australia and has provided the most liberal origin requirements for Indonesian electric motor vehicles of any Australian trade agreement.
IA-CEPA contains better and more certain access to the Indonesian market for Australian investors and exporters.
IA-CEPA includes a framework for trade and investment-related cooperation through a jointly-funded Economic Cooperation Program. The program will support technical assistance and capacity building activities across a range of trade-related areas to strengthen commercial links and help stimulate two-way investment.