A‑CEPA will strengthen and shape Australia's goods trade with Indonesia for decades to come as our economies evolve and grow. In 2021-2022, Indonesia was Australia's 13th largest goods trading partner, and IA‑CEPA provides a significant boost to develop this relationship further.
IA‑CEPA offers win-win opportunities for business in both countries. Building on the benefits of the ASEAN-Australia-New Zealand Free Trade Agreement, IA‑CEPA provides improved goods access to the markets of both countries. IA-CEPA is leading to stronger value-chains between Australian and Indonesian business, working together to become a regional powerhouse.
Key outcomes for trade in goods are:
- Over 99 per cent of Australian originating goods exports to Indonesia enter duty free or under significantly improved or preferential arrangements.
- Australia eliminated all of our remaining tariffs on imports of Indonesian goods on entry into force (EIF).
- These outcomes, combined with a program of economic cooperation under IA-CEPA, is helping boost bilateral trade as well as exports to third-country markets from both parties.
- For the first time in an Australian FTA, non-tariff measures have their own dedicated chapter, including a bilateral co-operative mechanism.
- IA‑CEPA also has sub-committees to discuss sanitary and phytosanitary measures, technical barriers to trade and trade facilitation.
Australia is an important supplier of agricultural products to Indonesia. In 2021-22, Australia exported an estimated $4.3 billion worth of agricultural goods to Indonesia. Once fully implemented, IA‑CEPA will provide preferential access for more than 99 per cent of Australia's agriculture goods imported by Indonesia. Australian farmers benefit from IA-CEPA, while Indonesian businesses and consumers have improved access to Australia's premium produce, including for processing and export to regional and global markets.
Australia is an important supplier of manufactured and other goods into Indonesia, including inputs into construction and production processes in Indonesia. Australia's exports of manufactured and other goods to Indonesia were worth over $1.3 billion in 2021-22. IA‑CEPA offers win-win outcomes through the provision to Indonesian producers of Australian manufactured and other goods at lower cost and with more certain access.
Under IA‑CEPA, Indonesia will eliminate tariffs on 6.2 per cent of tariff lines for manufactured and other goods, (on top of existing elimination under AANZFTA covering 92.0 per cent of tariff lines). By 2025, 99.8% of imports of manufactured and other goods from Australia will be duty-free.
Minerals and fuels
Australian exports of minerals and fuels to Indonesia were worth an estimated $3.9 billion in 2021-22.
Under AANZFTA, Indonesia has already eliminated tariffs on 97.4 per cent of resource tariff lines covering virtually 100 per cent of existing imports.