Indonesia-Australia Comprehensive Economic Partnership Agreement

Australia and Indonesia signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 4 March 2019. This agreement launches a new chapter in economic relations between Australia and Indonesia.


IA-CEPA creates a framework for Australia and Indonesia to unlock the vast potential of the bilateral economic partnership, fostering economic cooperation between businesses, communities and individuals.

Indonesia is a growing market for Australian goods and services exporters. In 2018, total two-way trade in goods and services with Indonesia was worth A$17.6 billion, making Indonesia our 14th largest trading partner. IA-CEPA will provide Australian and Indonesian businesses an opportunity to expand and diversify this economic partnership.

IA-CEPA builds on commitments under our existing free trade agreement, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) across goods, services and investment.

In addition to reducing non-tariff barriers to trade and simplifying paperwork, IA-CEPA will allow 99% of Australia's goods exports to enter Indonesia duty free or with significantly improved preferential arrangements. All Indonesia's goods exports will enter Australia duty free.

IA-CEPA will improve conditions for services suppliers and the climate for two-way investment. Australian services suppliers and investors will have greater certainty for entry and operation in the Indonesian market, helping to facilitate more Australian investment in Indonesia. This will create more opportunities for Australians to help meet Indonesia's growing needs for investment and for the supply of world class services in its market.

What happens now?

Australia and Indonesia are now following their respective domestic treaty making processes to bring IA-CEPA into force. For Australia, this includes an inquiry by the Parliamentary Joint Standing Committee on Treaties (JSCOT).

JSCOT IA-CEPA inquiry website

Why has the Government concluded an FTA with Indonesia?

As one of the fastest growing economies in the Indo-Pacific, Indonesia presents a significant opportunity for Australian businesses. By some estimates, Indonesia will be the world's fifth-largest economy by 2030, and IA-CEPA ensures that Australia is well-placed to deepen economic cooperation and share in Indonesia's growth.

As strategic partners and the two largest economies in Southeast Asia, the agreement also complements and supports our shared interest in fostering a secure and prosperous region.

For more information on IA-CEPA, and on Australia's relationship with Indonesia, see the following links:

Last Updated: 20 November 2019

Indonesia market snapshot

  • GDP: US$1.02 trillion (2018)
  • GDP per capita: US$3,870.6 (2018)
  • GDP growth: 5.2 per cent (2018)
  • Population: 264.2 million (2018)
  • Trade with Australia: $17.6 billion (2018)

Contact us


Phone: +61 2 6261 1888


Regional Trade Agreements Division
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent

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