Monday, March 7, 2016

Indonesia is a significant economic and regional partner for Australia. Two-way trade in goods and services reached $14.9 billion in the 2013 calendar year, making Indonesia our 12th largest trading partner and 11th largest export market. Australian investment in Indonesia was worth an estimated $10.9 billion in 2013. Austrade estimates that there are more than 400 Australian companies operating in Indonesia, in sectors including mining, agriculture, construction, infrastructure, finance, health care, food and beverage and transport.[1] IA CEPA negotiations commenced in Jakarta in September 2012. It aims to strengthen and expand the trade, investment and economic cooperation relationship between Indonesia and Australia. It will help bring the region’s two largest economies closer together and will form a key part of Australia’s regional economic integration as part of the Asian Century.

Indonesia and Australia has started having closer cooperation in order to stimulate the solutions over the challenges and national security. The both countries were made the decision in enhancing the continuity of the common interests which stated on the “Pernyataan Bersama Maret 2010” to enhance the investment and bilateral trade between them two. The negotiations cover the cooperation of economy,  trade and investment that will give contribution more towards trade and investment close-relationship, equilibrate, and beneficial for each.

IA-CEPA negotiations have been two rounds of negotiations this far. The agreement is intended to free up impediments to bilateral trade and investment.[2] Indonesia is Australia’s twelfth largest trading partner (2013 calendar year)[3], produced;

More than 250 Australian companies have a presence in Indonesia. Two-way investment between Australia and Indonesia was valued at $9.6 billion in 2014, with Australian in investment in Indonesia at $8.1 billion and Indonesia investment in Australia at $1.5 billion. Australia’s two-way trade with Indonesia was worth $14.8 billion in 2014-5, making Indonesia our 12th largest trade partner. Agricultural products (such as wheat, live animals and sugar) are Australia’s key merchandise exports to Indonesia, valued at $3.4 billion in 2014-15, while manufactured goods are key imports ($3.1 billion). Two-way trade in services was valued at $3.8 billion in 2014-15. Education is Australia’s key services export to Indonesia ($585 million) and tourism is our main services import from Indonesia (almost $2 billion).[4]

On 17 November 2015, Trade and Invesment Minister, Robb, announced the intention to reinvigorate negotiations towards the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA), to boost two-way trade and investment flows and provide a framework for closer economic cooperation.