Goods
Building on the ASEAN-Australia-New Zealand Free Trade Agreement, Australia will immediately eliminate all remaining tariffs on Indonesian imports into Australia.
In response to a specific Indonesian request, Australia has provided the most liberal origin requirements for Indonesian electric motor vehicles of any Australian trade agreement.
Services and investment
Australia's services and investment commitments in IA-CEPA lock in Australia's existing open policy settings, similar to those in other trade agreements. These commitments include exceptions that preserve policy flexibility in sensitive areas such as:
- public health and education
- social services
- culture and broadcasting
- indigenous policy
- maritime transport.
Indonesian investment in Australia will be subject to Australia's foreign investment policy, including screening by the Foreign Investment Review Board.
Skills package
As part of an overall skills package, Australia and Indonesia have agreed to a reciprocal Skills Exchange, allowing professionals from both countries to gain 6 months experience in the other's market.
Australia has also committed to allow up to 200 Indonesians per year to engage in 6 month work training opportunities in Australia – this will help build the capacity of Indonesia's workforce in key sectors, including those of interest to Australian investors.
Indonesia will also receive an increase in the number of Australian work and holiday visas (from 1000 today to 4100 in year one, growing to 5000 over six years). This will provide useful work experience for young Indonesians as well as assist regional Australia to meet seasonal labour requirements.
Economic cooperation
IA-CEPA includes a framework for trade and investment-related cooperation through a jointly-funded work program. The joint work 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.
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