Australian business should take a fresh look at Indonesia, the powerhouse nation on our doorstep and soon to be among the largest economies in the world. With a strong middle class – 52 million and growing – forecasters predict Indonesia’s swift post-COVID recovery, a testament to Indonesia’s resilient growth and commitment to reform.
In 2020, the “Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)” entered into force which gives Australian businesses major advantages in the Indonesian market. For example:
- more than 99 per cent of Australian goods exports by value will enter duty free or under liberalised rules
- Australian investors will benefit from greater certainty and protection for their investments in Indonesia
- the agreement removes barriers to two-way trade, increases bilateral movement of workers and facilitates joint ventures in third countries.
To assist Australian companies take advantage of the Agreement and deepen their engagement with Indonesia, the Australian government has produced a “Blueprint for Trade and Investment with Indonesia”.
The Blueprint provides practical and strategic guidance for Australian businesses considering market opportunities in the Indonesian economy for the first time. It also helps Australian business take advantage of complementarities between the two economies – Australia has the goods, expertise and know-how which align with Indonesia’s major economic priorities.
Sectors highlighted in the Blueprint include health and aged care, agriculture and food, education and training and resources and energy services. The Blueprint also highlights opportunities for Australian companies to establish partnerships in Indonesia, including in Indonesia’s dynamic services sector, and to diversify their markets and supply chains.
The Blueprint will assist both Australia and Indonesia to get the maximum benefit out of IA-ECPA as we look towards economic recovery following the pandemic.
The Morrison Government is strengthening Australian economic and trade relationship with Indonesia through the launch today of the Blueprint for Trade and Investment with Indonesia.
The blueprint will help Australian companies grow their commercial links and develop new opportunities within the Indonesian market following the commencement of the Indonesia-Australia Comprehensive Economic Partnership Agreement in 2020.
Minister for Trade, Tourism and Investment Dan Tehan said the Blueprint provided practical and strategic guidance for Australian businesses.
“Australia has the goods, services, expertise and know-how which align with Indonesia’s major economic priorities,” Mr Tehan said.
“Establishing broader and stronger partnerships in Indonesia will enhance post-pandemic economic recovery, long-term growth in both countries and support job creation.
“The Blueprint highlights opportunities for Australian business in health and aged care, agriculture and food, education and training and resources and energy services.
“As strategic partners and the two largest economies in Southeast Asia, the Indonesia- Australia Comprehensive Economic Partnership Agreement and supporting Blueprint complements and supports our shared interest in fostering a secure and prosperous region.”