6 July 2020
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) officially enters into force this week.
Australia’s Trade Minister Simon Birmingham said IA-CEPA will bring significant new trade and investment opportunities to consumers and businesses in both countries, and be an important part of our post-COVID strategies.
“The start of IA-CEPA will be a major opportunity to start a new economic chapter with one of our closest neighbours and will help to further strengthen the strategic partnership between our two nations,” Minister Birmingham said.
“Bolstering economic ties between our nations will create new trade opportunities for Australian and Indonesian businesses, boost two-way investment and increase prosperity in both countries.”
Under IA-CEPA, Australia will immediately eliminate all tariffs on Indonesian imports into Australia. Including for electric motor vehicles, where Indonesia will have the most flexibility of all of our trading partners to use imported inputs.
The agreement has created opportunities for greater Australian investment in the tertiary, health, tourism, telecommunications and logistics services sector in Indonesia.
And once international travel is again possible, Indonesians will be able to come to Australia to build their skills through a professional exchange program and workplace based training program in education, tourism, telecommunications, infrastructure development, health, energy, mining, financial services and the digital economy.
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.
To help businesses take advantage of this agreement, Australia’s FTA Portal provides up-to-date information on our commitments under IA-CEPA, and a guide has been made available on the Australian Department of Foreign Affairs and Trade website.