Phil Turtle
National President

President's Column

Dear Members and Friends,

With the recent week-long State Visit of Prime Minister Morrison to the US behind us, our Government is one of a growing coalition of nations urging an end to the US-China Trade war. With many such uncertainties and distractions, it is crucial that Australia and Indonesia press ahead with IA-CEPA, to lock in the great gains on offer for both countries whilst goodwill and momentum are high. 

Moving us importantly towards IA-CEPA ratification, the Joint Standing Committee on Treaties (JSCOT) has tabled their Report to the Australian Parliament, stating that “In the Committee’s view, both the IA-CEPA, and the A-HKFTA and Hong Kong Investment Agreement, are in Australia’s national interest” and that “The Committee recommends binding treaty action in both cases”. More on IA-CEPA can be found in “IA-CEPA Corner” below.

Our Prime Minister Scott Morrison, will be travelling to Jakarta for President Jokowi’s inauguration on 20 October, following the recent swearing in of the new Indonesian Parliament on the 1st of October. This visit will be another great opportunity to underscore the closeness of our two countries, the importance of our relationship, and bring further focus to the conclusion of IA-CEPA.

Many would have observed that former Prime Minister Malcolm Turnbull has also recently visited Indonesia to meet with a number of key figures, including President Jokowi, and advocate for the ratification of IA-CEPA. He was also able to join our Ambassador for his first ride on Jakarta’s highly-lauded new MRT, and deliver a keynote address at the University of Indonesia, placing emphasis on Indonesia’s “relatively underdone” economic partnership with Australia.

Ambassador Kristiarto Legowo opens IABS 2019 with his keynote address

In Sydney, AIBC recently supported the Indonesian Embassy in the delivery of the Indonesia-Australia Business Summit 2019, which was formally opened by Ambassador Legowo together with the new Governor of NSW, Her Excellency the Honourable Margaret Beazley AO QC. This Summit, which is now in its 5th year, focused on the Automotive, Education and Infrastructure sectors, bringing together key leaders in these fields from both countries. AIBC was pleased to play a role in each of these sessions, helping to advance important conversations and connections. One of the great friends of the Australia-Indonesia relationship, BKPM Chairman Tom Lembong, addressed the forum via a pre-recorded video which can be viewed here.

This coming month sees both the Annual General Meeting of AIBC, and the IABC Conference in Bali. We wish our colleagues at IABC well for their Conference, and look forward to reporting on these events in our next edition.

Phil Turtle
National President

IA-CEPA Corner

This past month has seen the Australian Parliament’s Joint Standing Committee on Treaties (JSCOT) conclude their hearings, with a hearing in Canberra featuring our Ambassador to Indonesia, Gary Quinlan, and Chief Negotiator, Elizabeth Ward. The record of these appearances can be viewed here, whilst further fresh submissions to JSCOT can be found here.

JSCOT has now submitted their report, with 4 weeks of sitting time available before the end of the year for this to be considered and IA-CEPA ratified by the Australian Parliament. On the Indonesian side, the Agreement is before Commission VI in a similar process. With the new Indonesian Parliament only sworn in on 1 October, and with other important legislation before it, it is hoped still that ratification by Indonesia can be achieved not too long after President Jokowi’s inauguration on 20 October.

Through the JSCOT process, AIBC has been actively advocating for the Agreement to gather wide support, including with the Federal Labor Party and Crossbench Senators who have voiced concern over some attributes of the Agreement. AIBC recently wrote to the 6 Crossbench Senators, with an example here.

Harper and Young families celebrating Indonesia-Australia Comprehensive Economic Partnership Agreement in Western Australian wheat crop – Picture courtesy GIWA

One industry that is eagerly awaiting ratification and entry into force, is the grain sector which is a significant contributor to the existing Trade relationship. With great competition from other producers in Argentina, and Black Sea countries, IA-CEPA is seen as a great opportunity for Australia to regain lost market share and develop new opportunities in wheat, barley and sorghum particularly.

AIBC recently partnered with the Grain Industry Association of WA (GIWA) at a forum focussing on this sector in Perth. More details from this forum will be presented in the next issue of AIBCnews, however the GIWA submission on IA-CEPA can be viewed here, whilst the slides presented at this forum by APTINDO (Indonesia Flour Millers Association) and GPMT (Indonesian Feedmills Association) can be viewed here and here.

Once again, useful links for those interested in further detail on IA-CEPA include the DFAT IA-CEPA website, together with earlier submissions of AIBC and the Indonesia-Australia Business Partnership Group (IA-BPG).

IABC Conference 2019

INDONESIA AUSTRALIA BUSINESS CONFERENCE

CONFERENCE 4.0

The conference about our future – are we ‘smart’ enough

The Indonesia Australia Business Council is hosting its biennial Business Conference on 3-5 November this year (Sunday to Tuesday) in beautiful Bali. And this is our 30th year – a special conference in a special year.

The face of business is changing fast. The local branch of our bank used to be a focal point. Now you are lucky to find someone in the branch if you can find the branch. We don’t pretend we are brainier than Luca Pacioli, friend of Leonardo da Vinci, who codified double entry bookkeeping for the world in 1494 (not forgetting that the Koreans had their own similar system at the time). But now we have to adapt to faster-moving change and learn new ‘codes’. That is what being ‘smart’ means. We will look at what this means for some selected business activities.

Program

After a Sunday evening opening, over the next two days the conference will look at political and economic trends, hear from businesses dealing with these trends, and hear from government leaders vitally interested in trade and investment issues. We will consider how the IA-CEPA can help us grow and grow smarter, whatever our business.  Please click here to view the current Program.

The Ministers responsible for trade and investment in both Australia and Indonesia are invited to attend.

BALI, 3 – 5 NOVEMBER 2019

Pullman Bali Legian Beach - Kuta

Enquiries may be made through secretariat@iabc.co.id or by contacting Vic Halim at the IABC Secretariat on 521 1540 or director@iabc.or.id, or Conference Convenor Ambassador Hamzah Thayeb on tmht52@hotmail.com or Conference Chairman Peter Fanning on 081 186 2094.

To Register, please click here.

AIBC at IMARC 2019

The Australia Indonesia Business Council will again partner the International Mining and Resources Conference and Expo (IMARC) and invites members to attend the 6th annual event to be held in Melbourne from 29-31 October 2019.

Australia’s largest mining event, IMARC brings together over 7,000 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators and educators from over 100 countries to Melbourne for four days of learning, deal-making and unparalleled networking.

The AIBC National Mining & Energy Group will also again host an Australian-Indonesian mining information booth to highlight the great work and profitability of our members' investments in Indonesia, the excellent market for Australian METS, the increasing investment by Indonesian companies in the Australian minerals and energy markets, and the broader two-way trade and investment opportunities envisaged by the IA-CEPA.

For details contact Geoffrey Gold, Convenor of the AIBC National Mining & Energy Group at gmgold@goldgroup.biz.

Trade Expo Indonesia 2019

The 34th Trade Expo Indonesia 2019 Exhibition and Trade Mission is fast appraoching and will be held between 16-20 October 2019. 

For the past few years, Indonesia has achieved a positive trend of export growth in a variety of products and services to the global market, which has to be both maintained and improved further, because Indonesia is also competing with other countries in exploring global opportunities.

To keep on improving national export performance, the Ministry of Trade has been proactive in inviting and bringing in buyers and investors for a direct deal with Indonesian providers of export products and services at the annual tradeshow of Trade Expo Indonesia (TEI).

TEI is an international B2B-focused tradeshow that is designed to boost export product growth and export market expansion. The 34th TEI in 2019 brings up the theme “Creating Products for Global Opportunities” to promote quality products made in Indonesia for the global market, develop business networks, investment and present showcases of Indonesian premium and best products. Along with the exhibition, TEI also present a series of paralel activities consisting of Trade, Tourism and Investment Forum, Business Matching, Business Counseling, Regional Discussion, Overseas and Local Trade Mission, Export Start-Up Competition and Talk Show.

For further program information and registration details, please click here. 

NSW Update

Fine Food Australia 2019

On 9 September 2019, the Indonesian Consulate General of the Republic of Indonesia and the Indonesian Trade Promotion Centre (“ITPC”) in Sydney hosted an event in one of well-known Indonesian restaurant in Sydney CBD, Enjoy Mie. This event presented an opportunity for a panel of food industry manufacturers, suppliers and importers to showcase their brand, product and services as well network with some Sydney based Indonesian business community.

The panel consists of representatives from Indonesian based ventures such as Dua Kelinci, Helmigs Prima Sejahtera, Sari Segar Husada, Garuda Top Plasindo and Kampung Kearifan Indonesian (Javara Indigenous Indonesia). They were joined by three established local importers of Indonesian product, Eastern Cross Trading, Sont Trading and Grein Australia.

The event was opened by the Consulate General, Bapak Heru Subolo. Pak Heru noted that a large opportunity exists for Indonesian products to thrive in Australia with consideration of involvement of local Indonesian community in Australia to increase product and brand awareness within the Australian market. This address was reinforced by Ibu Ayu Siti Maryam, Director to ITPC Sydney.

AIBC NSW was also present, represented by the NSW Chapter Secretary, Francisco Widjojo, and Committee Member, Chris Kristian.

Bukalapak Case Competition Finals and Networking

On 30 August 2019, National Treasurer Wendy Hartanti and NSW Secretary Francisco Widjojo were judges for the Bukalapak Case Competition Finals and Networking event held at the University of Sydney. The Case Competition was a joint initiative between Bukalapak, AIYA NSW and PPIA USYD. It was a full house at the University of Sydney with more than 100 attendees at the event. Bukalapak is an Indonesian e-commerce company and tech unicorn that counts Naver, Emtek, GIC and Alibaba’s Ant Financial as some of its investors. The winners of the Case Competition received internships with Bukalapak. We thank AIYA NSW and PPIA USYD for their invitation to participate in the Case Competition Finals and for a well-executed event.

From left to right: Francisco Widjojo (AIBC NSW, NSW Secretary); Wendy Hartanti (AIBC National, Treasurer); winning team of Bukalapak Case Competition; Tushar Bhatia (Bukalapak, former Associate Vice President of Growth); Jeffrey Tobias (The Strategy Group, Managing Director)

Micro-Finance and Financial Inclusion in Australia and Indonesia

On 10 September 2019, NSW Secretary Francisco Widjojo moderated a panel discussion at Haymarket HQ centred on microfinance and financial inclusion in Australia and Indonesia with representatives from Good Shepherd Microfinance, the largest microfinance organisation in Australia, and Opportunity International, a global microfinance organisation that provides various microfinance products across multiple markets. The panel discussion formed part of the program for the current Australia Awards Indonesia cohort that was conducted by Monash Business School and the Australia Indonesia Centre. We thank Joy Webster from Good Shepherd Microfinance and Simon Lynch from Opportunity International for their insight and passion on the night.

L-R: Joy Webster (Microfinance Manager for NSW & ACT, Good Shepherd Microfinance); Francisco Widjojo (AIBC NSW, NSW Secretary); Simon Lynch (Community Development and Indonesia Director, Opportunity International)

Nick Alexander, 
NSW Chair

TAS Update

Indonesia Indpenendence Day 2019

Hobart was fortunate to celebrate Indonesia's 2019 Indpendence Day with an event on 6th September hosted by the Indonesian Consul General Ibu Spica Tutuhatunewa.

Well attended by both Diaspora and the business community, the event was fortunate to have the Premier of Tasmania, Hon Will Hodgman who gave the keynote speech in which he acknowledged the good work done to date by AIBC Tasmania and committed his government to increasing its engagement with Indonesia.

L-R:  Premier Will Hodgman, Ibu Spica and Pak Kristiarto

Ambassador Kristiarto Legowo was also in attendance to not only support the event, but to actively participate in an Indonesian language promotion being targeted at primary schools in Tasmania.

Peter Craven, AIBC TAS Chair with the Premier of Tasmania, Hon Will Hodgman.

Peter Craven,
TAS Chair

WA Update

IA-CEPA Workshop Series

AIBC in WA hosted a second IA-CEPA Workshop, aimed at informing businesses about the opportunities and intricacies of IA-CEPA in the Services Sector. 

AIBC National President Phil Turtle officiated, with WA Consul General, Ibu Dewi Gustina Tobing, as special guest.

Presenters covered a range of topics including;

• IA-CEPA history and overview (AIBC);
• An Indonesian perspective (Consul General Ibu Dewi Gustina Tobing);
• Export, Customs and Tariff considerations (Pitcher Partners);
• Developments in Data Science (WA Data Science Innovation Hub);
• Cybersecurity – Case Study (Red Piranha);
• Trade Finance (Westpac);
• Project Financing (EFA);
• Export Market Development Grant support (Peter Arbuckle);
• Software Development – Case Study (Jack’s Labs);
• International Tax issues (Pitcher Partners).

Birgitte Hebiton – Pitcher Partners

Dr Liz Dallimore – WA Data Science Innovation Hub

Gordon Hay – Red Piranha

Presentation slides from this workshop can be viewed here.

Thanks to Westpac, Pitcher Partners, Export Finance Australia, AustCyber, and Qantas Freight for their support of this event.
 

Presented in association with:

Networking Sundowner with Chris Barnes

AIBC WA was delighted to host Consul General to Surabaya, Chris Barnes, for a Networking Sundowner at the historic Esplanade Hotel in Fremantle. Aside from his previous role, representing WA as Trade Commissioner in Jakarta, Chris also served 3 years as AIBC’s National President.

Chris’s visit formed part of DFAT’s recent Global Heads of Mission Program, which saw all of Australia’s Ambassadors, High Commissioners, and Consuls General meet in Canberra then spread to the regions for a wide range of activity and engagements.

Consul General in Surabaya, Chris Barnes

Chris Barnes, Cr Jon Strachan, Cr Doug Thompson and AIBC President Phil Turtle

Fremantle was chosen for Chris’s visit, due to the common themes shared with Surabaya, including those relating to the Maritime, Education and Food sectors.

Additionally, the City of Fremantle, represented by Councillors Jon Strachan and Doug Thompson, enjoys a long-standing sister-city relationship with Surabaya.

Thanks to DFAT for their support of this event, and to AIBC Members and friends who attended.

Phil Turtle
National President

Indoview

Bringing Forward the Nickel Ore Export Ban

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the recent changes to the regulations governing the exports of Nickel Ore.

"The recent decision of the Government to bring forward the Nickel Ore Export Ban from 2022 to 2019 has unsettled international commodities markets as well as generated much discussion of the likely reasons for this decision.

There is a serious risk that, in bringing forward the Nickel Ore Export Ban to 2019, the Government has compounded Indonesia’s already endemic problem of investor uncertainty, especially in the energy, infrastructure and mining sectors.”

To read this article in full, click here.

Indonesia Market Update

In their September 2019 edition of “Indonesia Market Update”, Morelink Asia Pacific provide news updates across many key sectors including the Indonesian economy, investment, trade, retail, agrifood, manufacturing, automotive, ICT and infrastructure sectors.

To read this update, click here.