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About IA-CEPA

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About IA-CEPA

Indonesia - Australia growing
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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.

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

Key benefit of IA-CEPA

Indonesia

Australia

Mutual

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.

Key benefit of IA-CEPA

Indonesia

Australia

Mutual

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.

Key benefit of IA-CEPA

Indonesia

Australia

Mutual

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.

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.

About IA-CEPA

Indonesia - Australia growing together

Key benefit of IA-CEPA

Key benefit of IA-CEPA

Key benefit of IA-CEPA

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Indonesia - Australia growing
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