RI-Australia Strengthen Economic Partnership, Trade Minister Encourages Expansion Of Access To Local Products

JAKARTA - Indonesian Trade Minister Budi Santoso emphasized Indonesia's commitment to strengthening economic relations with Australia.

One of them is through strengthening the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

This was conveyed by Budi in a meeting with Assistant Minister of Foreign Affairs and Trade of Australia Matt Thistlethwaite in Gqeberha, South Africa. The meeting was held on the sidelines of the Trade and Investment Ministerial Meeting (TIMM) of the G20.

"Australia is one of Indonesia's main economic partners. We want to ensure that this cooperation is more balanced and mutually beneficial," Budi said in an official statement, Sunday, October 12.

Budi admitted that he welcomed the implementation of the General Review IA-CEPA which was agreed at the 3rd Joint Committee Meeting in June 2025. He also appreciated Australia's initiative in the preparation of the Terms of Reference General Review IA-CEPA.

"We appreciate Australia's initiative in its preparation. Indonesia will immediately submit input so that this process produces a more progressive and inclusive agreement for both parties," he said.

Budi also emphasized the importance of the sustainability of the IA-CEPA Catalys 2.0 program, a funding program from Australia that has entered its final phase.

He also hopes that the Catalyst 2.0 is in line with Indonesia's development priorities such as sustainable growth, energy transition, the digital economy, and skill development.

"We want to ensure that the real benefits of this cooperation are felt by the people of the two countries," he said.

In addition, Budi also encourages increased Australian market access for superior products supporting the Indonesian economy (economic powerhouse), including steel, automotive iron, and processed foods.

"Indonesian superior products can strengthen regional supply chains and support joint economic growth," he said.

Budi said Indonesia's support for a multilateral regulatory trading system.

He also emphasized Indonesia's commitment to strengthen ASEAN' Australia's New Zealand Free Trade Area (AANZFTA) and hoped for Australia's support in the process of accessing Indonesia to a Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In this regard, Australia expressed its support for Indonesia's efforts to join CPTPP. Australia also sees that although the process demands the fulfillment of high standards in various chapters (chapters), this can be an opportunity for Indonesia to strengthen economic reform and increase competitiveness in the region.

On the other hand, Indonesia's support for the completion of the Joint Statement Initiative (JSI) on E-Commerce at the World Trade Organization (WTO) as well as its participation in the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), as an alternative to the frozen WTO Appeal Agency, is considered to be very meaningful in strengthening Indonesia's readiness to meet the high standards applied in CPTPP.

Indonesia is a strong supporter of the multilateral trading system. The success of the 14th WTO Ministerial Conference next year will depend on our ability to bridge differences and ensure open, fair and inclusive trade," said Budi.

In the period January to August 2025, Indonesia and Australia's total trade was recorded at 8.60 billion US dollars, with Indonesia's exports of 2.52 billion US dollars and imports of 6.07 billion US dollars.

Sementara itu, pada 2024, total perdagangan kedua negara mencapai 15,41 miliar dolar AS dengan ekspor Indonesia tercatat sebesar 4,97 miliar dolar AS dan impor Indonesia sebesar dolar AS 10,45 miliar.

Ekspor utama Indonesia ke Australia di antaranya produk dari besi dan baja, mesindan peralatan listrik, mesin-mesin dan pesawat mekanik, pupuk, serta alas kaki. Sementara itu, impor utama Indonesia dari Australia yakni bahan bakar mineral, perhiasan dan permata; bijih, kerak, dan abu logam; gandum; serta binatang hidup.

Meanwhile, in 2024, the total trade between the two countries reached 15.41 billion US dollars with Indonesia's exports recorded at 4.97 billion US dollars and Indonesia's imports of 10.45 billion US dollars.

Indonesia's main exports to Australia include iron and steel products, electric machinery and equipment, mechanical machinery and aircraft, fertilizers, and footwear. Meanwhile, Indonesia's main imports from Australia are mineral fuels, jewelry and gems; ore, crust, and metal ash; wheat; and live animals.