IA-CEPA Information

(The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered into force on 5 July 2020.)

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 has been a growing market for Australian goods and services exporters. In 2018-19, total two-way trade in goods and services with Indonesia was worth A$17.8 billion, making Indonesia our 13th largest trading partner. IA-CEPA will provide Australian and Indonesian businesses an opportunity to expand and diversify this economic partnership.

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.

Australia's arrangements with Indonesia under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) remain unchanged. While IA-CEPA builds on outcomes in AANZFTA, the two agreements will co-exist after IA-CEPA enters into force. Businesses will continue to be able to use AANZFTA.

Indonesia – Australia Comprehensive Economic Partnership Agreement (IA - CEPA): Guiding Principles, Objectives and Organisation of Negotiations

On 2 November 2010 in Jakarta, the Leaders of Indonesia and Australia agreed to commence negotiation of an Indonesia-Australia Comprehensive Economic Partnership Agreement (IA- CEPA). They agreed that the IA-CEPA would cover economic cooperation and trade and investment issues, with the objective of further contributing to building a higher-level and mutually beneficial partnership between the two countries. With these objectives in mind, the IA-CEPA negotiations will be guided by the following principles and objectives:

1. Negotiations will be aimed at progressing the shared objectives of accelerating sustainable economic growth and raising living standards.

2. Both countries will conduct the negotiations in a positive manner and with mutual understanding.

3. Negotiations will take into consideration the 2009 report of the Joint Feasibility Study on an Australia-Indonesia Free Trade Agreement, the 2012 Indonesia-Australia Business Partnership Group Position Paper on Considerations Towards the Indonesia-Australia Comprehensive Economic Partnership Agreement and inputs received from other stakeholders; and build on the outcomes achieved in the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

4. Both countries acknowledge that in order to achieve mutual benefits, the IA-CEPA will be comprehensive in scope and will not only aim to enhance their economies, but also to facilitate the flow of goods, investment and services, by reducing trade barriers (tariffs, non- tariff and other behind the border measures), addressing investment measures which have the effect of impeding or preventing larger trade and investment flows, as well as enhancing other technical cooperation in specific sectors identified as key drivers of economic growth.

5. The Scope and Coverage of the negotiations will be as follows (areas may be modified by mutual consent):
- Economic Cooperation
- Trade in Goods
- Trade in Services
- Investment
- Movement of Natural Persons
- Other issues (Electronic Commerce; Competition Policy; Government Procurement; Intellectual Property Rights; Environment; Labour and any other issues which take into account new and emerging issues relevant to business realities)
- Institutional and Framework Provisions (Transparency; General Provisions and Exceptions; Institutional Provisions; Dispute Settlement Procedures; Final Provisions).

6. Due consideration should be given to the different levels of development of the two countries. The IA-CEPA should therefore include provisions for flexibility that will take into account development issues so that the overall IA-CEPA is development oriented.

7. The nature of IA-CEPA commitments, including differentiated timeframes, should be addressed at an early stage of the negotiations.

8. The terms of the IA-CEPA will be subject to periodic review so as to facilitate revision of the terms of the agreement to take into account developments in bothcountries, the broader bilateral partnership and international developments.

9. The IA-CEPA will be consistent with the WTO Agreement, including GATT Article XXIV and GATS Article V.IA-CEPA negotiations will seek to achieve a comprehensive and balanced outcome through undertaking parallel negotiations across all negotiating areas.

10.Negotiations on Economic Cooperation will be conducted simultaneously with the negotiation of other provisions in order to incorporate or accommodate inputs which are derived from the negotiations of other areas.

11. The IA-CEPA Pre-Agreement Facility (PAF), established to support the IA-CEPA negotiations, will be used to fund jointly agreed economic cooperation activities undertaken during the course of the negotiations.

Organisation of Negotiations
- The negotiation will be undertaken in a Trade Negotiating Committee (TNC), supported by Negotiating Groups and other groups as agreed.
- The scheduling and timing of TNC meetings will take into account the need for both Australia and Indonesia to undertake domestic consultations with their stakeholders, including the private sector. Australia and Indonesia may utilize and provide opportunities for joint outreach activities including joint meetings with private sector and other stakeholder representatives
- Negotiations will take place alternately in Australia and Indonesia, or as agreed by both countries.

Jakarta, 27 March 2013

The Australian Government’s “Free Trade Agreement Portal” contains information for each of Australia’s FTAs in force, including the ASEAN-Australia-New Zealand FTA. It will be updated to include IA-CEPA once it enters into force.

The portal includes a search function which allows users to find out the tariff for a particular product, the rule of origin for that product, and any certification requirements in order to trade using a particular FTA.

The portal also includes information on the services and investment commitments in each FTA.

Please click the Related Link(s) to open the FTA Portal.

The Department of Foreign Affairs and Trade website has detailed information about IA-CEPA, including fact sheets, the full legal text of the agreement (including all schedules of market access commitments), public submissions and general information about the bilateral trade and economic relationship.

The Department of Foreign Affairs and Trade in Canberra operates a dedicated email address for anyone with a query about IA-CEPA. Please contact ia-cepa@dfat.gov.au

The Australian Embassy in Jakarta has created a new email address for anyone with a business-related query. Please contact business.engagement.jakarta@dfat.gov.au