A‑CEPA will strengthen and shape Australia's goods trade with Indonesia for decades to come as our economies evolve and grow.
IA‑CEPA offers win-win opportunities for businesses in both countries. Building on the benefits of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFA), 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.
Agriculture
Australia is an important supplier of agricultural products 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.
Manufactured goods
Australia is an important supplier of manufactured and other goods into Indonesia, including inputs into construction and production processes in Indonesia. 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.
Resources and energy
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. IA-CEPA will provide further tariff elimination, covering table salt and some lubricating oils.