Industry comments in support of the Indonesia-Australia Comprehensive Economic Partnership Agreement
National Farmers' Federation (Fiona Simson, President)
"The National Farmers' Federation congratulates the Government on concluding the Indonesia-Australia Comprehensive Economic Partnership Agreement. Trade is critical to the growth of Australian agriculture and Indonesia is a vital trade partner for Australian farmers. IA-CEPA locks in important new trade opportunities for our meat, grains, sugar, dairy and horticulture producers. It ensures Australian farm exports can contribute to Indonesia's economic growth by providing high quality food and fibre to Indonesian consumers. IA-CEPA creates new opportunities for Australian farmers and Indonesian processors to partner in exporting to the world. The NFF applauds the Government's ongoing commitment to negotiating valuable FTAs including ChAFTA, JAEPA, KAFTA and now IA-CEPA. Opening international markets is critical to agriculture's aim to reach a production value target of $100 billion by 2030. IA-CEPA and Australia's other FTAs lock in those trade opportunities and provide the market certainty needed to help us reach that target."
The Australian Industry Group (Innes Willox, Chief Executive)
"Members often nominate at the border and behind the border barriers as the biggest obstacles to expanding in to the Indonesian market. The ground breaking agreement to dedicate an entire FTA Chapter to non-tariff measures, as well as streamlining the export documentation requirements, will give Australian exporters the confidence to have another look at this growing market."
Australian Chamber of Commerce and Industry
"The Australian Chamber of Commerce and Industry has had a strong, long term interest in the completion of the Indonesia – Australia Comprehensive Economic Partnership Agreement (IA-CEPA), and in particular our involvement with the Business Partnership Group. We are pleased that it seems that a number of the recommendations from this Group have been included in the negotiated outcomes. For example, "economic cooperation" will be a feature to support both countries to develop stronger links between supply chains and related investments that will assist to realise the opportunities embedded in the dedicated chapter areas."
Australia Indonesia Business Council (AIBC) (Phil Turtle, National President)
"The Australia Indonesia Business Council, as the peak organisation involved with the promotion and facilitation of trade and investment between Australia and Indonesia, is delighted to see the finalisation of IA-CEPA and congratulates all involved in its formulation. The Australia-Indonesia relationship is an important yet historically underdone one, and this Agreement promises to kick-start a new era of Trade and Investment between our countries. With important outcomes delivered across a broad range of sectors, the AIBC looks forward to playing an important role in socialising IA-CEPA within the business community, ensuring the opportunities created are widely known and pursued."
Australian Services Roundtable (Jane Drake-Brockman, Chairman of the Board):
"The Australian Services Roundtable, the peak business body for the Australian services industries, said the Australia-Indonesia Comprehensive Economic Partnership Agreement (IA-CEPA) is a stand-out success on multiple fronts and will contribute to improved services sector competitiveness in both economies. It further demonstrates the Australian government's determination to champion better deals for services, including for SMEs.
The FTA breaks new ground on services trade, investment, business visits and e-commerce outcomes with Australia's geographically closest fast-growing South-East Asian trading partner. Over time the deal will enable enhanced business partnerships, greater technical inter-operability and a more seamless regulatory environment for services and data flows as the transformation to the digital economy evolves. SME exporters in both countries will benefit.
The deal involves market opening not only in Tourism and Education but also in Mining services, Health, Hospital and Aged Care services, in Architecture and Engineering and a range of other knowledge-intensive Business Services."
Minerals Council of Australia (Tania Constable, CEO)
"This is a good outcome for the Australian and Indonesian resources sectors.
The agreement's provisions will create more scope for Australia's world-leading mining services firms to partner with Indonesian businesses in developing that country's extensive minerals and energy resources.
This will not only provide new export opportunities for Australia – it will also support economic growth and development in one of Australia's nearest and most important neighbours.
The agreement's tariff reductions for copper cathodes and steel products will improve market access for these resources-based commodities. Cheaper input costs will also boost the competitiveness of a number of Indonesia's manufacturing industries."
Specific goods-related groups
Australian Livestock Export Council (ALEC) (Simon Crean, Chairman)
"The Australian Livestock Exporters Council (ALEC) commends and welcomes the Australian Government for the common ground and substantive outcomes achieved through the completed IA-CEPA. This is an agreement of great significance which our organisation and peer red-meat bodies have long argued for and supported.
The structure of the agreement to support sustainable expansion of Australian live cattle feeder and breeder export volumes out of northern Australia port gateways into the largest market of Indonesia, has many important elements under the completed free trade agreement.
Critically it complements Indonesia's policy goal of achieving greater security and access to protein through expanding free trade, whilst playing to Australia's strength with its large northern Australian cattle industry and established supply chain so ably equipped to support this market.
The collective efforts of Australian DFAT and DAWR officials during the IA-CEPA discussions and negotiations is recognised by industry, along with the former Australian Trade Minister and Prime Minister whom embraced the need for closer economic ties between both nations."
Meat & Livestock Australia (Andrew McCallum, Global Manager - Trade and Market Access)
"IA-CEPA is a most welcome addition to the suite of FTAs the Government has concluded with key trading partners. Indonesia is a customer for significant quantities of Australian live cattle, beef and offal and has a steady requirement for sheepmeat (albeit smaller volumes). IA-CEPA will not only deliver additional trade liberalisation (by building on the ASEAN-Australia-New Zealand FTA outcomes) it will also provide a framework for a more market orientated import regime. This in turn will deliver benefits for both our sector as well as the Indonesian supply chain – including importers, retailers and foodservice operators. On behalf of the red meat and livestock industry I extend our thanks to Australia's negotiating team for their tireless effort."
Bluescope (Mark Vassella, Managing Director and CEO)
"BlueScope is very pleased that the Australian Government has secured a high quality, comprehensive agreement with Indonesia.
The outcome on hot rolled coil (HRC) and cold rolled coil (CRC) steel opens up the potential to more competitively export steel products from our Port Kembla Steelworks to BlueScope's operations in Indonesia. This is a win-win for Australia and Indonesia: it will boost Australian steel exports; while also ensuring that BlueScope's operations in Indonesia, which employ over 500 Indonesians, have access to a wider range of high quality, competitively priced feedstock.
We congratulate the government, including the former Trade Minister The Hon Steven Ciobo, for their hard work and close liaison with industry in achieving this important outcome."
GrainGrowers (John Eastburn, Chairman)
"GrainGrowers, representing Australian grain farmers, commends the Australian and Indonesian Governments for the progression and finalisation of IA-CEPA. IA-CEPA will cement the existing relationship between Australian and Indonesian milling wheat industries whilst allowing new trade, investment and relationships to flourish between Australia's grain industry and Indonesia's food manufacturing, stockfeed and livestock sectors."
AUSVEG (James Whiteside, Chief Executive Officer)
"AUSVEG, representing Australia's vegetable and potato growers, welcomes the finalisation of the IA-CEPA. The efforts of the Minister for Trade, Tourism and Investment and DFAT, working together with their Indonesian counterparts to finalise negotiations, are greatly appreciated by the Australian vegetable industry. In particular, the agreement made for carrot and potato exports – two of the Australian vegetable industry's key export crops – provides a strong basis for developing sustainable trade in fresh vegetables between Australia and Indonesia."
Citrus Australia (David Daniels, Market Access Manager)
"With the conclusion of IA-CEPA, Citrus Australia is optimistic about the outcomes from the agreement.
While the tariff reductions under the proposed agreement are certainly welcome, the increased certainty provided for Australian citrus in Indonesia will be even greater news.
This outcome will allow the Australia citrus industry to build stronger long-term business relationships with Indonesian customers, and provide better business certainty along the value-chain.
As a close neighbour of Australia, the Indonesian market has strong growth potential and if the current offer by Indonesia is realised, we can expect to see export volumes increasing.
Australian citrus complements the product grown in Indonesia, filling different market segments. We look forward to working with our customers in Indonesia to grow demand for citrus in Indonesia across the board."
Australian Dairy Industry Council (Terry Richardson: President)
"Indonesia is a major destination for our Australian dairy exports and ranks as Australia's third largest dairy export market on value terms. Indonesia's demand for dairy is set to continue to build on the back of its increasingly affluent 260 million strong population. As Australia's nearest neighbour with strong existing ties with our dairy industry, the conclusion of IA-CEPA will enhance the naturally emerging opportunities that are presenting themselves in that key market. From this perspective the conclusion of IA-CEPA is a very welcome outcome for the Australian dairy industry. The Australian dairy industry will continue to work with Indonesian food processors to grow demand for dairy products across the Indonesian market."
Canegrowers (Paul Schembri, Chairman)
"Improving the conditions for trade with our nearest neighbour is a great outcome for the Australian sugar industry. The change in tariff from an effective 8% to 5% puts us on a par with our competitors in that market and provides the opportunity to increase our exports to Indonesia from their present level of 350,000 tonnes to more than 1 million tonnes. Indonesia is a growing market and one which we are perfectly situated to supply with quality sugar well into the future. We look forward to a long and mutually beneficial relationship."
Specific services and investment-related groups
Austmine (Robert Trzebski, Chief Operating Officer)
"Austmine welcomes news of the conclusion of IA-CEPA. For over 10 years now, Indonesia has consistently ranked among the top 5 export destinations for Australian exporters of Mining Equipment, Technology and Services (METS) and remains a region of future growth in the resources sector. IA-CEPA should encourage more Australian METS exports to Indonesia, to the mutual benefit of our countries".
TAFE Directors Australia (TDA) (Craig Robertson, Chief Executive Officer)
"TAFEs in Australia look forward to working with the Indonesian Government, technical education institutes and industry to assist in developing skills programs for Indonesians. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) supports and encourages this collaboration to help Indonesian firms lift their capability through skilled workers to enable trade with Australia and across the globe."
Sustainable Skills Ltd (Nigel Carpenter, CEO)
"The IA-CEPA has enabled a much improved understanding of how Indonesia's workforce skills opportunity is central to Indonesia's social and economic development. Australian experience in delivering industry-based training can help Indonesia to deliver job-ready trained workers. Sustainable Skills Ltd. welcomes the significant opportunity IA-CEPA opens for world-class Australian training providers to contribute to skilling the Indonesian workforce into the future."
Engineers Australia (Angela Frawley, General Counsel)
"Engineers Australia welcomes the opportunity to work cooperatively with Indonesia to foster mutual recognition arrangements for professional engineering qualifications and services. The IA-CEPA will be significant in supporting and building upon an existing global dialogue about trade in professional engineering services and we look forward to exploring the benefits that the agreement will provide."