Jakarta, March 11, 2019 (Antara) - The signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) has marked a new chapter in the economic relations between the two countries.
The IA-CEPA creates a framework for Australia and Indonesia to unlock the vast potential of bilateral economic partnership, fostering economic cooperation between businesses, communities, and individuals.
On March 4, 2019, the IAPA was officially signed by Indonesian Minister of Trade, Enggartiasto Lukita, and Australian Minister of Trade, Tourism, and Investment, Simon Birmingham, in Jakarta.
The agreement had been negotiated since 2010 but was halted until November 2013. Later, in March 2016, the agreement had been reactivated.
"The signing of this agreement is very valuable. After six years of consideration, it has been signed," Lukita stated, adding that it also reflects the strong economic bond between the two countries.
The IA-CEPA will erase 100 percent goods tariff rate from Indonesia to Australia, and 94 percent goods tariff rate from Australia to Indonesia.
By signing the agreement, both Indonesia and Australia will gain benefits, such as The Indonesian Fast Moving Consumer Goods (FCMG) market, which is expected to benefit from Australia's cheaper sugar, and Indonesian pesticides, which will be more competitive in Australian market.
Indonesian Industry Minister Airlangga Hartarto considered the signing of the agreement as a new milestone in the Indonesian and Australian bilateral relations.
"The IA-CEPA will have a positive impact on the Indonesian and Australian economies in the long term," Hartarto noted.