Trade Agreements between Indonesia and Australia
Comprehensive Economic Partnership Agreement negotiations since 2010
Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) negotiations commenced in Jakarta in September 2012. IA-CEPA aims to strengthen and expand the trade, investment and economic relationship between countries Australia and Indonesia. It will help bring the region's two largest economies closer together. Indonesia is a very significant economic and regional partner for Australia. Two-way trade in goods & services reached $14.8 billion in 2011, making Indonesia; Australia's 12th largest trading partner and 11th largest export market. Australian investment in Indonesia was worth $5.4 billion in 2011. Austrade states that there are more than 400 Australian companies operating in Indonesia. These companies are in sectors including mining, agriculture, construction, infrastructure, finance, health care, food and beverage and transport. |
The importance of the trade relationship between Indonesia and Australia to Australia's Economy
The trade relationship between Indonesia and Australia is very strong as both these countries are very close to each other, they are also known as "neighboring countries". Indonesia is Australia's 10th largest market for merchandise exports and 12th largest source of imports. Trading with Indonesia is good for Australia's economy and there are many reasons why both these countries trade with each other.
Australia and Indonesia co-operate in many ways on a wide range of international issues. These issues including counter-terrorism, people smuggling and climate change. Australia is committed to a long-term development partnership with Indonesia, In 2011-2012 Australia’s assistance to Indonesia will be worth an estimated $558 million, making it our largest bilateral aid program. Indonesia and Australia have a healthy trade and economic relationship with two-way trade (merchandise and services) worth $13.8 billion in 2010-11 as well as a two-way investment worth around $5.7 billion, which was recorded in 2010.
Australia and Indonesia’s relationship is strong with a expansive program for their collaboration. In March 2010 both governments agreed to promote the relationship to a comprehensive strategic partnership. The Australian Government is dedicated to strengthening the Australia-Indonesia business relationship. At the July 2012 meeting, (Prime Minister of Australia, Gillard) and (President of Indonesia, Yudhoyono) made an agreement that potential exists to promote trade and investment links between the both economies (the two largest in the region). Leaders welcomed the entry into force of the AANZFTA and looked forward to the first round of negotiations on the IA-CEPA taking place prior to the annual Trade Ministers’ meeting later this year. Leaders agreed to encourage an increase in bilateral trade to US$15 billion by 2015. An estimated 400 Australian companies operate in Indonesia; these companies include mining, construction, finance, banking, food, beverages and transport. There have been more than 100 two-way legislative visits between Australia and Indonesia since late 2007.
In 2000, major Australian exports to Indonesia included things like wheat, cotton, aluminium, live animals and passenger motor vehicles. Major Australian imports included crude petroleum, machinery and transport equipment, paper manufactures and paper.
Australia is the largest bilateral grant-based donor to Indonesia, providing a wide range of technical and economic support to the country. Australia provides predictable, effective and assistance to the country Indonesia in its efforts to strengthen and grow. Australia's partnership with Indonesia on climate change is substantial and growing, both in international negotiations and through initiatives to reduce emissions from deforestation and degradation. On the 9th of December 2010, the Australian Foreign and Climate Change Ministers announced an distribution of $45 million to extend climate demonstration work in Kalimantan. Australian Prime Minister’s June 2008 visit to Indonesia, Kevin Rudd and President Yudhoyono released a "Joint Statement on Climate Change" reaffirming Australia's and Indonesia's solution to respond to the serious challenge climate change problems, hence calling on all leaders to agree to a long-term goal for emissions reductions as stated in the Bali Action Plan.
Therefore the trade relationship between Indonesia and Australia is of great significance to not just Australia's economy however Indonesia's as well.
Australia and Indonesia co-operate in many ways on a wide range of international issues. These issues including counter-terrorism, people smuggling and climate change. Australia is committed to a long-term development partnership with Indonesia, In 2011-2012 Australia’s assistance to Indonesia will be worth an estimated $558 million, making it our largest bilateral aid program. Indonesia and Australia have a healthy trade and economic relationship with two-way trade (merchandise and services) worth $13.8 billion in 2010-11 as well as a two-way investment worth around $5.7 billion, which was recorded in 2010.
Australia and Indonesia’s relationship is strong with a expansive program for their collaboration. In March 2010 both governments agreed to promote the relationship to a comprehensive strategic partnership. The Australian Government is dedicated to strengthening the Australia-Indonesia business relationship. At the July 2012 meeting, (Prime Minister of Australia, Gillard) and (President of Indonesia, Yudhoyono) made an agreement that potential exists to promote trade and investment links between the both economies (the two largest in the region). Leaders welcomed the entry into force of the AANZFTA and looked forward to the first round of negotiations on the IA-CEPA taking place prior to the annual Trade Ministers’ meeting later this year. Leaders agreed to encourage an increase in bilateral trade to US$15 billion by 2015. An estimated 400 Australian companies operate in Indonesia; these companies include mining, construction, finance, banking, food, beverages and transport. There have been more than 100 two-way legislative visits between Australia and Indonesia since late 2007.
In 2000, major Australian exports to Indonesia included things like wheat, cotton, aluminium, live animals and passenger motor vehicles. Major Australian imports included crude petroleum, machinery and transport equipment, paper manufactures and paper.
Australia is the largest bilateral grant-based donor to Indonesia, providing a wide range of technical and economic support to the country. Australia provides predictable, effective and assistance to the country Indonesia in its efforts to strengthen and grow. Australia's partnership with Indonesia on climate change is substantial and growing, both in international negotiations and through initiatives to reduce emissions from deforestation and degradation. On the 9th of December 2010, the Australian Foreign and Climate Change Ministers announced an distribution of $45 million to extend climate demonstration work in Kalimantan. Australian Prime Minister’s June 2008 visit to Indonesia, Kevin Rudd and President Yudhoyono released a "Joint Statement on Climate Change" reaffirming Australia's and Indonesia's solution to respond to the serious challenge climate change problems, hence calling on all leaders to agree to a long-term goal for emissions reductions as stated in the Bali Action Plan.
Therefore the trade relationship between Indonesia and Australia is of great significance to not just Australia's economy however Indonesia's as well.