Indonesian Free Trade Agreement - economic opportunity opens up

Australia officially expanded the existing ASEAN-Australian-New Zealand Free Trade Agreement in July 2020 with the IA-CEPA Indonestian Free Trade Agreement. This significant agreement, will provide better access for Australian exporters and improve trade facilitation across administration procedures for both importers and exporters.

Indonesia presents economic opportunity for exporters in particular to a market currently worth A$17.8 million in trade making it our 13th largest trading partner. Predictions are that Indonesia will be the fifth largest world economy by 2030. This new economic agreement provides further opportunities for Australian companies looking to reduce demand risk in their supply chains by diversifying their customer base as well as procurement risk (eg China +1 policy) where importers must look at alternative suppliers for similar products and services in addition to China in a post COVID-19 pandemic world.

Below is a list of export commodities currently given preferential treatment under the agreement.

If you would like to know more about opportunities and eligibility for the Indonesian Free Trade Agreement, contact your ITM representative.

References:

www.dfat.gov.au. (n.d.). Indonesia-Australia Comprehensive Economic Partnership Agreement | DFAT. [online] Available at: https://www.dfat.gov.au/trade/agreements/in-force/iacepa/Pages/indonesia-australia-comprehensive-economic-partnership-agreement.

Newman, J 2020, ‘Emerging Out of the Pandemic Supply Chain Report’, in , Reuters.