Reciprocal trade in services was estimated at $6.2 billion in 2018-2019. Education-related travel dominates Australian services exports to Indonesia. Further information is available on the IA-CEPA website of the Department of Foreign Affairs and Trade and on the Austrade IA-CEPA website, including the full contract text, a guide on using IA-CEPA for exporting or importing goods. Easily accessible information on export and import opportunities under IA-CEPA, AANZFTA and other free trade agreements is available on the FTA portal. Energy resources and products also account for about a third of Australia`s exports to Indonesia. Tariffs, which have already been significantly reduced by AANZFTA, are now virtually eliminated on these products. In addition, by 2025, 99.8% of Australia`s industrial products will benefit from duty-free access (up from 92% under AANZFTA). Austrade and a number of our partners have provided practical advice to Australian companies on key industry opportunities in Indonesia under the IA-CEPA. Return to this section from time to time to see the latest information. IA-CEPA aims globally to improve economic cooperation and develop bilateral trade and investment between Australia and Indonesia. THE AI-CEPA enhances the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) to further liberalize trade in goods, providing greater security for services, investment opportunities, mutual exchange of expertise and modern rules for e-commerce. The Australian Parliament ratified the agreement on 26 September.

November 2019 as part of the Customs Amendment Bill 2019 (alongside the PECE with Peru, Hong Kong and China) and the law received royal approval on 3 December 2019. [17] The People`s Council ratified the agreement in plenary on February 6, 2020. [18] It came into force on July 5, 2020. [19] Australia has an important opportunity to develop its trade, investment and economic cooperation relations with Indonesia. Bilateral trade negotiations between the two countries began in November 2010, with the IA-CEPA itself announced in a joint statement under the chairmanship of Susilo Bambang Yudhoyono and the post of Prime Minister of Julia Gillard. [4] [5] After several conferences and meetings in 2011, a meeting in Darwin on March 3, 2011. Another joint communiqué was issued in July 2012 calling for the opening of negotiations on the agreement before the end of the same year. [6] After that, however, relations between the two countries deteriorated (due to the 2013 Australian spying scandal and the Indonesian execution of Australian citizens in 2015), and in 2015, Indonesia introduced tariffs on Australian livestock imports. Finally, Indonesian Trade Minister Thomas Lembong and his Australian counterpart, Steven Ciobo, announced a resumption of negotiations in March 2016. [7] Four rounds of negotiations took place before the resumption of talks. [8] The kpmG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that acts as a coordinating body for a network of independent member firms. KPMG International does not provide audit or other client services. These services are provided exclusively by member firms in their respective geographical areas. KPMG International and its member firms are legally distinct and distinct entities. They are not, and nothing herein, should be construed as placing such entities in the relationship of parent companies, subsidiaries, agents, partners or joint ventures. No member firm has the power (real, obvious, implied or otherwise) to bind kpmg International or any member firm in any way. The information contained herein is of a general nature and is not intended to respond to the situation of any particular person or entity. While we strive to provide accurate and timely information, there can be no assurance that such information will be accurate at the time of receipt or that it will continue to be accurate in the future.

No one should act on the basis of such information without the advice of an appropriate professional after a thorough examination of the situation in question. For more information, please contact KPMG`s Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006. IA-CEPA builds on the benefits of the ASEAN-Australia-New Zealand Free Trade Area Agreement (AANZFTA), which continues to operate alongside IA-CEPA. Importers and exporters have the opportunity to choose the agreement that suits them best. During the first overseas visit of the new Australian Prime Minister Scott Morrison during his tenure in Jakarta, he and Jokowi resigned on 31 September. August 2018, an agreement on IA-CEPA. [12] However, the signing was delayed due to a bilateral dispute over Australia`s recognition of West Jerusalem as Israel`s capital, which led to diplomatic protests from Indonesia. [13] [14] The agreement was finally signed in March 2019 by Lukita and Australian Trade Minister Simon Birmingham, subject to ratification by the Australian Parliament and the Indonesian People`s Representative Council. [15] [16] The Comprehensive Economic Partnership Agreement (IA-CEPA) between Indonesia and Australia is a bilateral agreement signed between Australia and Indonesia in March 2019 and ratified by Australia in November 2019 and Indonesia in February 2020. The agreement includes a free trade agreement that removes tariffs on almost all products traded between the two countries, in addition to relaxing investment regulations in Indonesia for Australian companies and increasing the quota for Indonesians seeking vocational training in Australia. .