Australia, Indonesia sign free trade agreement

Australia and Indonesia signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on March 4, launching a new chapter in economic ties between the two nations. 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.


Indonesia is a growing market for Australian goods and services exporters. In 2017-18, total two-way trade in goods and services with Indonesia was worth $16.8 billion, making the former Australia’s 13th largest trading partner, according to a press release from the latter’s department of foreign affairs and trade (DFAT).


IA-CEPA will provide Australian and Indonesian businesses an opportunity to expand and diversify this economic partnership. In addition to reducing non-tariff barriers to trade and simplifying paperwork, IA-CEPA will allow 99 per cent 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.


Australia and Indonesia will now follow their respective domestic treaty making processes to bring IA-CEPA into force. For Australia, this will include tabling the text of the agreement in Parliament and an inquiry by the Joint Standing Committee on Treaties (JSCOT).

Leave a Reply

Your email address will not be published. Required fields are marked *