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.