Vice President Asks For IA-CEPA Implementation To Be Optimized

JAKARTA - Vice President Ma'ruf Amin asked for the implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which has been effective since July 5, 2020 to be maximized.

The request was conveyed by the Vice President when receiving a Call (Honorary Visit) of the Deputy Prime Minister (PM) of Australia Richard Marles, at the Vice Presidential Palace, Central Jakarta, reported by ANTARA, Monday, June 5.

"I hope we can maximize the implementation of the IA-CEPA through expanding market access for Indonesian products, as well as increasing job opportunities for Indonesian citizens in Australia," said the Vice President.

Based on Financial Account Transactions records, Australia's investment in Indonesia in 2019 reached 348.27 million US dollars (covering 1,378 projects), in 2020 of 348.55 million US dollars (1,562 projects), in 2021 it decreased to 195.2 million US dollars (1,748 projects), and 2022 again increased by 524.4 million US dollars (982 projects).

The vice president also appreciated Australia's increase in investment in Indonesia, and hoped that investment could be expanded in the renewable energy sector.

I am pleased to note that Australian investment has increased significantly in the past year, especially for the strategic sector. In the future, investment in renewable energy and the manufacture of electric vehicle batteries must be increased in order to utilize Australia's lithium resources and Indonesia's large nickel reserves capabilities," said the Vice President.

In response to this, Australian Deputy PM who also serves as Australian Defense Minister Richard Marles said that although investment and trade between the two countries were good, there was still a lot to be done.

"You are right, Your Majesty, we have something in common in nickel and lithium natural resources. Maybe there is cooperation [in the sector] that we can do in the future," said Deputy PM Richard Males.

Richard Males said Indonesia-Australia relations are very important where according to him, Indonesia is a country that also has a large population.

"Our focus is on how to maximize the various cooperation between the two countries," he added.

The IA-CEPA has been the highlight of economic cooperation between Indonesia and Australia since it took effect on July 5, 2020. Some of the points included in the IA-CEPA include the commitment to eliminating tariffs for Indonesian products entering Australia as well as lower rates for Australian products entering the Indonesian market.

In addition, there is also a commitment to help increase two-way investment, capacity building for human resources, financial services, and the concept of an economic powerhouse that benefits both countries.

Furthermore, the concept of economic powerhouse' which allows Indonesia-Australia to take advantage of their respective advantages (Australian quality raw materials with the Indonesian manufacturing industry) is to produce superior products that can be exported to third countries and contribute to the global value chain.