Australia and Indonesia agree to terminate bilateral investment treaty
Australia and Indonesia have signed an Exchange of Letters agreeing to terminate the Agreement between the Government of Australia and the Government of the Republic of Indonesia concerning the Promotion and Protection of Investment, done at Jakarta on 17 November 1992 (along with its 15 year survival clause contained in Article XV). The Exchange of Letters was tabled in Parliament on 14 May 2020 and entered into force on 6 August 2020, following support from the Joint Standing Committee on Treaties (JSCOT). The JSCOT Report can be found on the JSCOT website. Protections for Australian investors in Indonesia and Indonesian investors in Australia are available under IA-CEPA, which entered into force on 5 July 2020.
Government response to the Joint Standing Committee on Treaties' report on the Indonesia-Australia Comprehensive Economic Partnership Agreement
On 19 February 2020, the Government response to the report was published. The Government accepted the recommendation that binding treaty acting in the case of the Indonesia-Australia Comprehensive Economic Partnership Agreement.
Joint Standing Committee on Treaties' report on the Indonesia-Australia Comprehensive Economic Partnership Agreement
On 9 October 2019, the Joint Standing Committee on Treaties' report on the Indonesia-Australia Comprehensive Economic Partnership Agreement, as well as the Australia-Hong Kong Free Trade Agreement and the associated Investment Agreement, was tabled in Parliament. The Committee recommended binding treaty acting in the case of the Indonesia-Australia Comprehensive Economic Partnership Agreement.
Statement to the Joint Standing Committee on Treaties' Inquiry into IA-CEPA
On 9 September 2019, H.E. Mr Gary Quinlan AO, Australia's Ambassador to Indonesia, and Ms Elizabeth Ward, Chief Negotiator, Regional Trade Agreements Division and representatives of other Australian Government agencies appeared before the Joint Standing Committee on Treaties.
Signing of IA-CEPA
Australian Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham, signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) with Indonesian Minister for Trade H.E Enggartiasto Lukita, in Jakarta, Indonesia, on 4 March 2019.
Conclusion of negotiations on IA-CEPA
Australia and Indonesia announced the substantive conclusion of negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 31 August 2018. The Agreement will deepen our economic and security cooperation with one of our major trading partners. Indonesia is one of the largest economies in the world, and bolstering the economic ties between our nations will lead to even greater opportunities for Australian businesses, service suppliers, investors and farmers.
Media release: A new chapter of economic partnership with Indonesia
The eleventh round of IA-CEPA negotiations was in Jakarta from 4 – 8 December 2017.
The tenth round of IA-CEPA negotiations was in Jakarta from 13 – 17 November 2017.
IA-CEPA: Increasing Indonesia-Australia business opportunities
The Indonesian National Standards Body, Badan Standardisasi Nasional (BSN) and Standards Australia (SA) have embarked on an exciting initiative to support the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), currently being negotiated between the Governments of Indonesian and Australia. The project aims to identify standards harmonisation opportunities and to promote greater understanding of the role that standards play in underpinning trade between the two countries.
Minsters Ciobo and Lukita reconfirm bilateral commitment to IA-CEPA
On 2-3 August 2016, Australian Trade Minister Ciobo met his newly appointed Indonesian counterpart, Minister Lukita, new Chairman of the Indonesian Investment Coordinating Board (BKPM) Thomas Lembong, New Minister for Finance Sri Mulyani Indrawati and Minister of Industry Airlangga Hartarto in Jakarta to build further momentum for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). IA-CEPA will create the framework for a new era of closer economic engagement between Australia and Indonesia and open new markets and opportunities for businesses and consumers.
During the visit, Ministers Ciobo and Lukita met the Indonesia-Australia Business Partnership Group (IA-BPG) and received their updated report, 'Two Neighbours, Partners in Prosperity'. The IA-BPG is a unique platform that brings together peak Indonesian and Australian business groups to help inform IA-CEPA negotiations. The report updates recommendations from 2012 and is hosted on the Australian Chamber of Commerce and Industry website.
- Media release: Indonesia-Australia Comprehensive Economic Partnership Agreement, 1 August 2016.
- Media release: Indonesia-Australia Business Partnership Group, 2 August 2016.
- Media transcript: Doorstop with Indonesian Trade Minister Enggartiasto Lukita and Investment Coordinating Board Chair Thomas Lembong, 2 August 2016
- ACCI website
Indonesia-Australia Business Partnership Group Meets in Perth
28 April 2016
Phase II of the Indonesia-Australia Business Partnership commenced on April 26th with a stakeholder meeting in Perth. The BPG will hold a further three meetings over coming weeks to seek the views of Australian and Indonesian businesses to be reflected in a report to both Governments.
Indonesia-Australia Comprehensive Economic Partnership Agreement
16 March 2016
Australian Minister for Trade and Investment, Steven Ciobo and his Indonesian counterpart Minister Lembong, have announced the re-activation of negotiations towards a free trade agreement with Indonesia.
The Joint Statement of Intention will drive these negotiations forward.
While Indonesia is a close neighbour and firm friend, our trade and economic relationship can and should be performing better. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will launch a new era of closer economic engagement between our countries.
Joint Business Report Presented to Governments
A ground-breaking position paper from the Indonesia-Australia Business Partnership Group (IA-BPG) on the bilateral trade and investment relationship was presented to the Australian and Indonesian Governments in November 2012.
The paper puts forward a set of recommendations to improve trade, investment and economic cooperation for the governments of both countries to explore when negotiating the Indonesia-Australia Comprehensive Economic Partnership Agreement.
Business Partnership Group to consult on benefits of IA-CEPA for Australia and Indonesia
A core principle of the proposed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is that it is of mutual economic benefit. Identifying key barriers to trade for both Australian and Indonesian exporters as well as industry objectives and concerns is an important step in ensuring that a liberalising and beneficial agreement is achieved.
Representatives from the Australian Chamber of Commerce and Industry (ACCI), Indonesian Chamber of Commerce (KADIN), Australia-Indonesia Business Council (AIBC) and the Indonesia-Australia Business Council (IABC) have established a Business Partnership Group (BPG). The BPG will submit views to the Indonesian and Australian governments on what it considers to be the primary trade, investment and economic cooperation objectives of the IA-CEPA. The Business Partnership Group advice will be contained in a position paper which is expected to be submitted later in 2012.
The first Business Partnership Group meeting will be held in Sydney on 13 September, with subsequent meetings to be held in Jakarta and Eastern Indonesia.
BPG Media Release: Open Door to Business Feedback on Indonesia Partnership
Indonesia-Australia Annual Leaders Meeting - July 2012
Former Prime Minister Julia Gillard and President Susilo Bambang Yudhoyono met for the Second Annual Indonesia-Australia Leaders' Meeting in Darwin on 3 July 2012. Former Prime Minister Gillard and President Yudhoyono expressed their support, in the Joint Leaders Communique, for the launch of IA-CEPA negotiations before the end of 2012.
Trade Minister visits Indonesia - March 2012
Former Minister for Trade, Dr Craig Emerson, held talks with his Indonesian counterpart, other Indonesian ministers, and business representatives in Jakarta on 21-22 March. His discussions, inter alia, explored how business and government could work together to develop the IA-CEPA.
- Media release: Jakarta visit to strengthen trade ties, 20 March 2012.
- Speech: Australia and Indonesia: working together in the Asian Century. Address to the Jakarta Foreign Correspondents' Club, 22 March 2012.
Trade Minister visits Indonesia for ASEAN Business Summit - November 2011
Former Trade Minister Dr Emerson met with senior Indonesian ministers and business people in Bali, Indonesia, on 18-20 November to discuss trade and IA-CEPA developments. In a speech delivered at the Indonesia-Australia Business Council annual conference he stressed the importance of 'Partnership' in the IA-CEPA. He said this theme should be maintained in our broader engagement on the IA-CEPA.
- Media release: Trade Minister visits Indonesia for ASEAN Business Summit, 18 November 2011.
- Speech: Keynote address to the Indonesia Australia Business Council Conference/Australian Business Asia Regional Business Forum, 19 November 2011.
IA-CEPA Pilot Project works towards increased cattle productivity in Indonesia
Agricultural cooperation is an important part of the Indonesia-Australia bilateral relationship. Through technical assistance and capacity building initiatives, this cooperation aims to increase agricultural productivity in key sectors and improve food security.
Improving the productivity of smallholder beef cattle production is a high priority for the Indonesian Government and is integral to strengthening rural livelihoods and increasing the supply of domestically-produced beef in Indonesia. As a result, in association with negotiation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), Australia is supporting research aimed at improving the profitability of smallholder beef producers in Indonesia.
Under the project, the Australian Centre for International Agricultural Research (ACIAR) is working with farmers to improve Brahman cattle production systems in Indonesian villages, with the potential that these animals can be sold to Indonesian feedlots. Compared to local Indonesian breeds, such as Bali cattle, Brahmans have faster growth rates but only when fed higher quality diets.
More information is available at ACIAR - Improving beef cattle productivity in Indonesia.
Trade Minister visits Indonesia - April 2011
Former Trade Minister Dr Emerson made his first visit to Indonesia as Trade Minister in April 2011 as Australia and Indonesia prepared for negotiations on a Comprehensive Economic Partnership Agreement.
Media release: Trade Minister visits Indonesia, 17 April 2011.
Australia-Indonesia Business Council (AIBC) conference - 7 March 2011
The Australia-Indonesia Business Council (AIBC) held a conference in Sydney on 7 March 2011 titled "Deepening our Economic Partnership". The IA-CEPA was a key theme of the conference, and Australia's and Indonesia's Lead Negotiators delivered presentations on the current state-of-play.
The presentations are available at the links provided below:
Launch of negotiations - November 2010
- Media release: Trade Minister welcomes launch of Australia-Indonesia negotiations, 3 November 2010.
- Media release: Announcement to Negotiate an Indonesia-Australia Comprehensive Economic Partnership, 2 November 2010.