Indonesia-Australia Trading Soars, IA-CEPA Will Be Revived

Minister of Trade Budi Santoso (Photo: Antara)

JAKARTA - The Indonesia-Australia Comperhensive Economic Partnership Agreement (IA-CEPA) recorded significant achievements in the fifth year. In fact, the trade value of the two countries has doubled.

Trade Minister Budi Santoso revealed that Indonesia and Australia agreed to review the IA-CEPA agreement. This step was taken to ensure relevance and added value amid the current global dynamics.

Budi said this review was in line with the spirit of strengthening economic cooperation conveyed by Indonesian President Prabowo and Prime Minister Austalia Anthony Albanese last May. The Minister of Trade, Busan, also hopes that the involvement of relevant stakeholders will be carried out.

"The IA-CEPA review process aims to improve the benefits of the agreement for the two countries. By involving the business world, academics, and the community, it is hoped that this agreement can continue to make a positive contribution to the economy of Indonesia and Australia," he said in an official statement, Friday, July 4.

As a comprehensive economic partnership agreement, continued Budi, the IA-CEPA has provided a more strategic, deep, and broad cooperation framework than just tariff liberalization. This agreement has also had a positive impact on trade in goods and services, as well as investments in both countries.

"It is hoped that this agreement will further strengthen trade relations between the two countries and this is a shared responsibility," said Budi.

The total bilateral trade reached a record high of 15.4 billion US dollars in 2024, with the trend of Indonesia's exports growing by 14.46 percent and imports by 17.42 percent over the last five years (2020 to 2024).

In the field of services, continued Budi, Indonesia's export-service growth to Australia was recorded to have increased by 19.18 percent during 2019 to 2023.

On the other hand, Australia's investment in Indonesia continues to increase, especially in the mining, renewable energy sector, chemical industry, education, as well as hotels and restaurants.

"I also express my appreciation to all parties who have contributed to the implementation of the IA-CEPA so far. It is hoped that this celebration will be a momentum to strengthen future commitments, explore more opportunities for cooperation, and deepen the friendship between the two countries," said Budi.

In the period January to May 2025, continued Budi, Indonesia and Australia's total trade was recorded at 5.15 billion US dollars. In this period, Indonesia's exports to Australia were recorded at 1.52 billion US dollars while Indonesia's imports from Australia were 3.63 billion US dollars.

Budi said Indonesia's export mainstay products to Australia include petroleum except for crude oil, monitors and projectors, bulldozers, pipes and tubes, and wood.

"Meanwhile, Indonesia's main imports from Australia are among coal, wheat and meslin, iron ore and concentrate, gold, and sugar cane or bits," he said.