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About IA-CEPA

Unlock your business potential
About IA-CEPA

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) supports Indonesia and Australia’s shared interest for a secure and prosperous region. Coming into force on 5 July 2020, IA-CEPA elevated the bilateral relationship, and creates new markets, relationships and opportunities for businesses, primary producers, and skills exchange.

IA-CEPA also established an Economic Cooperation Program (IA-CEPA ECP Katalis), which supports both governments to implement the IA-CEPA and help businesses take advantage of the many opportunities for complementary development and growth.

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IA-CEPA creates a framework to unlock the vast potential of bilateral economic opportunities between the region's largest economies.

Key benefits of IA-CEPA

Indonesia
Australia
Mutual
Indonesia
  • No tariffs on imports of Indonesian goods to Australia, including for future goods, supporting the development of Indonesian manufacturing, and processing sectors, including automotive (especially electric and hybrid cars), timber (including furniture), textiles, machinery, agriculture, fisheries, forestry, and electronics.
  • The most liberal ‘Rules of origin’ requirements for electric motor vehicles of any Australian trade agreement, an industry targeted for Indonesia’s future growth potential. This offers Indonesia a significant advantage in accessing the Australian market. Indonesia’s electric vehicle industry ambitions will also be elevated by access to Australian lithium, nickel, and rare earth element mining projects.
  • Exchange programs and initiatives to strengthen Indonesia’s labour force, including:
    • 4000 additional Australian work and holiday visas for Indonesians, increasing from 1000 to 5000. This will provide work experience and cultural exchange for more young Indonesians and assist regional Australia to meet seasonal labour requirements.
    • an agreement to achieve Mutual Recognition on engineering, to increase the quality and global competitiveness of Indonesian workers.
    • upskilling for Indonesia’s workforce in key industries, with up to 200 Indonesians annually able to participate in six-month work training in Australia.
  • Australian investment in Indonesia’s technical and vocational training services, making it easier for Indonesians to gain internationally recognised qualifications locally.
  • Economic cooperation on complementary food products such as grain and red meat partnerships, and a food innovation centre.
Australia
  • Over 99% of Australian goods exports by value to Indonesia will enter duty free or under significantly improved preferential arrangements. This will also reduce the cost of imported commodities and encourage processing in Indonesia, benefiting Indonesian businesses.
  • Progressive tariff-rate quota increases for major Australian exports to Indonesia, including agricultural and natural resources commodities. For example, Australian livestock producers have a guarantee of zero tariffs for an annual quota of 575,000 for male live cattle. This will rise to 700,000 in the sixth year of the agreement.
  • Indonesia will issue import permits automatically and without seasonality for specific products committed under IA-CEPA, in accordance with the World Trade Organization Agreement.
  • Increased certainty for Australian businesses and suppliers in the Indonesian market, including guaranteed levels of Australian ownership, from IA-CEPA market access outcomes.
Mutual
  • Improved economic relations and fine-tuned trade and investment procedures, through a wide range of consultation mechanisms.
  • Additional security and certainty for investors through a set of modern, high-quality rules for investment, services, and digital trade. This includes an Investor State Dispute Settlement (ISDS) mechanism, which will protect investors and give them more confidence to move capital between both countries. Among other provisions, the ISDS requires host states to treat investors and covered investments no less favourably than its own investors and investments, and as favourably as investors and investments from other states.
  • Establishment of a reciprocal skills exchange, allowing people with tertiary level skill qualifications from both countries to gain six months experience in the other’s market.
Students at univ 1
Trade in goods and services between Indonesia-Australia is growing, even during the COVID-19 pandemic, with the total value reaching A$13.57 billion in 2021. At the same time, Indonesia is on track to be the world’s fifth-largest economy by 2030. IA-CEPA ensures that Indonesian and Australian businesses are positioned to diversify and share in that growth, deepening bilateral relations and supporting Indonesia’s development.
We're supported by:
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Australia Awards
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08 investing in women
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Ernst & Young
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IA-CEPA ECP Katalis

Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.

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