CANBERRA - The recently ratified Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is expected to boost Australian investment in Indonesia, said Coordinating Minister for Economic Affairs Airlangga Hartarto.
“In relation to IA-CEPA, as we all know Australia is not even among the five largest investors in Indonesia. The range is currently between US$400-700 million,” Mr Hartarto told a press conference at the Hyatt Hotel Canberra, Australia on Saturday (8/2).
With IA-CEPA, he added, import duties for textile and automotive products will be slashed from 5% to 0%. Regarding automotive products, currently the demand for commercial vehicles such as trucks and SUVs in Australia is recorded at US$1.1 million.
“Indonesia has the capacity [for vehicle manufacturing], and now we need to discuss [the opportunity] with Indonesian producers… Primarily, [IA-CEPA] focuses on hybrid and electric vehicles,” Mr Hartarto concluded.
Currently Mr Hartarto and a number of other cabinet ministers are accompanying President Joko Widodo on an official visit to Australia. Following the ratification of IA-CEPA, Mr Widodo is scheduled to address the Australian Parliament today (10/2). (MS)