The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered into force on 5 July 2020 and has strengthened economic cooperation by unlocking opportunities for trade and investment between the two countries.
IA-CEPA improves Australia's access to Indonesian markets by reducing or eliminating tariffs on goods and enhancing opportunities for service providers and investors. IA-CEPA has ensured that Australia is well-placed to share in Indonesia's growth.
Australia and Indonesia have highly complementary economies, particularly in areas such as agriculture and food, resources and green energy, infrastructure, and a wide range of services including health and aged care, education, tourism, and the digital economy. IA-CEPA continues to strengthen these complementarities, supporting greater bilateral trade and economic collaboration between our two nations.
The Economic Cooperation Program 'Katalis', under IA-CEPA, aims to boost collaboration and promote increased two-way trade and investment between Australia and Indonesia.
IA-CEPA also includes a Skills Development Exchange Pilot, which aims to enhance cooperation in workplace skills training and development.
Australia’s economic engagement with Indonesia is further strengthened by joint membership to the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP).
Key Outcomes and Benefits of IA-CEPA
- Tariff elimination: Tariffs on 99 per cent of Australian goods will be eliminated or reduced.
- Import licences: Automatic issuance of licences without seasonality for key Australian products.
- Non-tariff measures: Dedicated chapter on non-tariff measures (NTMs) including a bilateral co-operative mechanism enabling regular discussion of NTMs – a first for an Australian FTA.
- Digital: Robust rules allow businesses to transfer data across borders without the need to use or utilise local data storage centres. Further provisions have been introduced allowing the use of electronic signatures and digital trade documents.
- Education: Australian institutions can hold up to 67 per cent ownership in technical and vocational training providers in Indonesia. The agreement also makes it easier for Australian universities to establish campuses and operate in Indonesia under more flexible conditions.
- Mining and Telecommunications: Australian companies can own up to 67 per cent in contract mining, mine site preparation, and telecommunication service ventures.
- Tourism: Australians can fully own 3, 4, and 5-star hotels and resorts, with no geographical restrictions and hold 67 per cent ownership in most other accommodation types including restaurants, cafes, bars, and tour operator services.
Helpful Links
- FTA Portal – Access the latest information about Australia’s in-force Free Trade Agreements (FTAs). This user-friendly site helps you compare agreements including tariffs, Harmonised System Codes (HS Codes), rules of origin requirements, and find the best fit for your business needs.
- Australian Border Force – Find details on customs, import requirements, advance rulings and customs duties.
- Austrade – Explore export opportunities and support for Australian exporters.
- Department of Agriculture, Fisheries and Forestry – For market access issues for agricultural products including biosecurity and implementing policies for agricultural traceability.
Contact Us
For more information, please email: fta@dfat.gov.au