Trade agreement with Indonesia is great news for recovery
The entry into force of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 5 July has generated new and diverse opportunities in trade and investment for Australian businesses during the COVID-19 recovery phase and into the future.
IA-CEPA provides improved and more certain access into the Indonesian market for Australian exporters. Under IA-CEPA, over 99 per cent of Australian goods exports by value to Indonesia will enter duty free or under significantly improved preferential arrangements.
Further, under the agreement, Indonesia has committed to issue import permits for key markets including hot/cold rolled steel coil and without seasonality for live cattle, frozen beef, sheep meat, feed grains, certain citrus, carrots and potatoes.
IA-CEPA delivers strong outcomes for Australian investors and service providers, who now have improved access and certainty in important sectors such as education, tourism, communications, health, aged care and mining services.
The agreement has also secured guaranteed levels of Australian ownership in a range of sectors, including hospitals, certain infrastructure, and businesses providing certain technical and vocational training.
The entry into force of IA-CEPA signals to our region and the world that, even in these challenging times, Australia and Indonesia are committed to open trade and investment arrangements that benefit our businesses.
To help Australian businesses take advantage of IA-CEPA, we have updated the FTA Portal to reflect goods and service market access opportunities and published a guide to accessing tariff reductions under the agreement:
- FTA Portal
- IA-CEPA information, including a guide for business and information on tariff rate quotas (TRQs)
Further information on TRQs under IA-CEPA can be found at the Department of Agriculture and the Department of Industry, Science, Energy and Resources.
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