CANBERRA - The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is set to come into effect on July 5, 2020 after the Indonesian House of Representatives has completed its ratification process.
According to Australian Trade Minister Simon Birmingham, the trade deal will increase export opportunities for both countries and present “significant benefits” for businesses and investors, particularly during a crisis caused by the coronavirus (COVID-19) pandemic.
“Securing a trade agreement with Indonesia has been a longstanding objective of our government, to further strengthen the strategic partnership between our nations and further expand the choices available for Australian exporters,” said Mr Birmingham in an official statement on Thursday (7/5).
“The economic stresses being caused by COVID-19 in both Australia and Indonesia make this agreement even more important, as it will provide an opportunity to better stimulate growth and investment across both nations during the recovery phase.”
In addition, Mr Birmingham also highlighted benefits such as lower tariffs and improved access to Indonesian markets for sectors such as cattle farming, education, and tourism. The deal, he said, will be crucial to reducing job losses due to the COVID-19 crisis as “a critical part of our ultimate economic recovery”.
“I thank [Indonesian Trade] Minister [Agus] Suparmanto for his enthusiastic assistance, together with our predecessors, our trade negotiators and many stakeholders who have helped to secure this comprehensive agreement,” Mr Birmingham concluded. (MS)