Economic Partnership Agreement(IA-CEPA)
Learn moreEconomic Partnership Agreement (IA-CEPA)
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) creates a framework for Australia and Indonesia to unlock the vast potential of their bilateral economic partnership, fostering cooperation between businesses, communities, and individuals. Effective since 5 July 2020, IA-CEPA has eliminated almost all import tariffs, providing significantly greater access to goods, services, and investment markets under clearer rules. The Australian Government has reinforced its support for businesses to leverage this agreement by releasing the Skills Development Exchange Pilot and Blueprint for Trade and Investment with Indonesia, offering workplace exchange opportunities and strategic guidance—particularly in sectors where Australian companies hold competitive advantages: education, mining, hospital, energy, nursing home, professional services, telecommunication, tourism, construction, transportation, and waste management.
IA-CEPA is designed to boost investment flows and protection into and from Australia, complementing Australia’s arrangements with Indonesia under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP).
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IA-CEPA ECP KATALIS
IA-CEPA Economic Cooperation Program Katalis (ECP Katalis) is a bilateral, five-year (2020–25), government-backed economic cooperation program established under IA-CEPA to maximise the benefits of the agreement for Australia and Indonesia in three ways: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia. It is a two-government initiative implemented by DT Global and overseen through the Economic Cooperation Committee (ECC), co-chaired by Bappenas (Indonesia) and the Australian Department of Foreign Affairs and Trade, which partners with businesses to develop new and existing bilateral opportunities. Katalis works to facilitate connections, share market insights, build skills and knowledge, provide technical advice, and support policy reform across three target sectors in both countries—agrifood, advanced manufacturing, and services—including health, education, energy, finance, infrastructure, mining, transport, tourism, and communications. To support the next five-year phase of IA-CEPA (2026–2030), Katalis 2.0 will be launched, building on its core role of facilitating business-to-business and government-to-business linkages while placing greater emphasis on digital trade, green economy collaboration, and expanding SME participation in cross-border supply chains.
Resource :
Katalis fact sheet https://www.dfat.gov.au/sites/default/files/katalis-fact-sheet.pdf
The Document of Investment Concept Note of Katalis 2.0
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IA-CEPA
KEY
OUTCOMES FOR
AUSTRALIAN BUSINESSES
TRADE Over 99% of Australian goods exports by valueto Indonesia will enter duty free or under significantly improved preferential arrangements by 2020. This is higher than the 85% exemptions for Australian goods under the AANZFTA. There will also improvements in administrative procedures for exporters and importers for easier trade between the two countries.
INVESTMENT Under IA-CEPA, Indonesia is committed to increase certainty to Australian businesses in doing their business in Indonesia. The Australian businesses can now own up to 100% of ownership of their business in Indonesia (with limited exceptions). Indonesia also aims to create a better and faster investment procedures to make it easier for Australian to start their business.