The benefits of a free trade agreement between Australia and Indonesia are one step closer with the signing of the new Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 4 March in Jakarta.
Queensland primary producers, resources companies, education providers and other businesses are likely to enjoy improved export opportunities as a result of the agreement, which was signed by Australian Trade Minister Simon Birmingham and his Indonesian counterpart Enggartiasto Lukita.
The IA-CEPA is a free trade agreement designed to foster economic cooperation between Australia and Indonesia and expand and diversify bilateral economic partnerships.
Queensland Trade and Investment Commissioner for Indonesia Ben Giles said the new agreement would have a number of benefits for Queensland producers.
‘The IA-CEPA will allow more than 99% of Australian goods exports to enter Indonesia either duty-free or under improved preferential arrangements by 2020, with the most noticeable trade benefits being in agriculture.’ Mr Giles said.
‘The new agreement will also provide greater certainty for services suppliers such as education and healthcare providers who want to enter and operate in the Indonesian market.
‘Queensland holds a significant share of Australia’s export market for Indonesia, and Queensland businesses are already active in providing professional services here, so I believe we are one of the state economies with most to gain.’
Queensland exported $1.2 billion worth of goods to Indonesia in 2017–18, a 17.3% increase on the previous year. Indonesian tourism, study and investment in Queensland are also increasing.
Both Indonesia and Australia must now complete their own domestic treaty-making processes before IA-CEPA can be implemented.
For Australia, this will include an inquiry by the Joint Standing Committee on Treaties (JSCOT).
TIQ relocated and expanded its Jakarta office in 2018, supported by funding committed under the Queensland Trade and Investment Strategy 2017–2022.
If you’d like advice on exporting into Indonesia, or other overseas markets, contact TIQ today.