Indonesian President Joko Widodo (Jokowi) will detail his plan for implementing the Indonesia-Australia Comprehensive Economic Trade Partnership Agreement (IA-CEPA) at
Indonesian President Joko Widodo (Jokowi) will detail his plan for implementing the Indonesia-Australia Comprehensive Economic Trade Partnership Agreement (IA-CEPA) at the Australian parliament in Canberra today.
In a move away from Indonesia’s self-sufficiency policies, the IA-CEPA eliminates tariffs on 94% of Australian imports into Indonesia. For Australia, which already supplies 20% of Indonesia’s meat demand, the agreement will open up access to Southeast Asia’s largest economy.
More than just opening up markets between the two neighbours—whose bilateral trade was worth $8.6 billion in 2018—the IA-CEPA is also slated to strengthen cultural understanding.
Under the accord, 3,100 more Indonesians will gain Australian working visas, and 200 Indonesians will be offered six-month work training opportunities in Australia annually. The IA-CEPA also enables Australians to own 100% of hotels in Indonesia and invest in 67% of Indonesia’s university sector.
The IA-CEPA previously stalled over Jakarta’s anger at Canberra’s now-cancelled plan to move its embassy from Tel Aviv to Jerusalem, making today’s address an important step forward in the bilateral relationship.
Relying on solid economic ties as a foundation, expect Australia to strengthen its strategic relationship with Indonesia as means to increase its strategic influence.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.