About the IA-CEPA negotiations
The Indonesia-Australia Comprehensive Economic Partnership (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, primary producers, service providers and investors. IA-CEPA will build on existing multilateral and regional agreements including AANZFTA and be as comprehensive as possible. Australian and Indonesian Trade Ministers reactivated negotiations in March 2016 after they were first launched by Leaders’ in 2010.
Negotiators are meeting intensively to finalise the package of market access on goods, services and investment and to finalise text. IA-CEPA will cover the bilateral trade and investment relationship comprehensively in chapters such as: trade in goods, rules of origin, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, services, investment, telecommunications services, e-commerce, financial services, competition policy, institutional and framework provisions and economic cooperation.
A number of outcomes from IA-CEPA have been brought forward to demonstrate the benefits of closer economic cooperation between Australia and Indonesia. Early outcomes that have already been progressed include: the Indonesia-Australia Business Partnership Group; the Red Meat and Cattle Partnership; cooperation on Financial Services and in the Creative Industries (fashion and jewellery); and Australia’s elimination of its tariff on herbicides and pesticides in exchange for Indonesia’s reduction of its tariff on sugar.
Key interests and benefits
- IA-CEPA will address impediments to bilateral trade, including both tariff and non-tariff barriers.
- IA-CEPA will improve access to each other’s services markets and address impediments to increasing Australian investment in Indonesia and Indonesian investment in Australia.
- Economic cooperation under IA-CEPA will assist in the implementation of the agreement, support trade facilitation and provide a pathway for future liberalisation.