With the 13th-largest economy in the world, and geographic proximity to Indonesia, Australia is an attractive market for IndonesiaTangerang, Banten (ANTARA) - Indonesia strengthened trade agreements with Australia, especially the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), through the "Understanding the Australian Market" business forum at the 37th Trade Expo Indonesia (TEI).
"With the 13th-largest economy in the world, and geographic proximity to Indonesia, Australia is an attractive market for Indonesia," Trade Ministry's Director General of National Export Development Didi Sumedi stated here on Saturday.
Sumedi explained that the IA-CEPA framework, which he viewed as being the "most complete and deepest" international trade agreement as compared to others, is able to expand market access and improve the competitiveness of agricultural, fishery, industrial, forestry, and micro, small and medium enterprises (MSMEs) products.
He noted that the increasing implementation of IA-CEPA has opened up opportunities for Indonesian exporters to explore Australia's market. In addition to removing tariffs on imports to Australia, IA-CEPA also encourages potential "powerhouse" partnerships between Indonesian and Australian business sectors.
According to Statistics Indonesia (BPS), during the period between January and August 2022, the total trade between Indonesia and Australia increased by more than eight percent as compared to last year. Indonesia-Australia trade is dominated by non-oil and gas (non-migas) products.
By optimizing the IA-CEPA, existing opportunities can be used to bolster Indonesia’s exports to Australia, including through small and medium enterprises (SMEs), which are the backbone of the country's economy, Indonesian Ambassador to Australia Siswo Pramono remarked.
“We hope that through the 37th Trade Expo Indonesia, SMEs’ contribution to the value of Indonesia’s exports, especially in entering the Australian market, can be enhanced,” Pramono stated.
IA-CEPA also offers an opportunity for Australian and Indonesian businesses to expand and diversify existing partnerships, Australian Ambassador to Indonesia Penny Williams noted.
“This agreement strengthens productive capacities and builds export capabilities to support economic growth and job creation in both countries,” Williams remarked.
The IA-CEPA is more than just a trade agreement and is an important framework for the next phase of Indonesia-Australia economic relations, she stated.
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Translator: Sella G, Kenzu
Editor: Sri Haryati
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