Phil Turtle
National President

President's Column

Dear Members and Friends,

As we welcome Spring, both our countries live in “interesting times”. Australia is still coming to terms with recent political upheavals, as the Morrison Government settles in, and Indonesia grapples with its currency under pressure ahead of next year’s Presidential Election.

On the global scene, the tit-for-tat “Trade War” between the USA and China continues to escalate, with no end in sight and with implications for our region difficult to predict. Meanwhile the Trans-Pacific Partnership (TPP 11) is set to pass the Australian Senate after receiving bipartisan support.

Here, with the Indonesia Australia Business Summit just successfully concluded in Melbourne, anticipation is building for our AIBC Conference on the Gold Coast, Nov 11-13.

Tom Lembong, Chairman of the Indonesia Investment Coordinating Board (BKPM) delivering the Keynote address to IABS 2018.

For our Conference we are very delighted to have the key support of Telstra and telkomtelstra as joint Platinum Sponsors, along with Austrade, PwC, Garuda Indonesia, Bluescope, EMR Capital, TAFE Queensland and Asialink Business as Gold Sponsors. A range of other important organisations are also kindly supporting our Conference and we sincerely thank them all.

Of course, aside from our supporting organisations, many key figures in the Australia-Indonesia relationship will also be there, representing a broad range of sectors and perspectives. See our Conference Program here for more details.

With the Conference only several weeks away, we encourage all those planning to attend to get in now to secure their registrations as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) continues towards signing. The Agreement is currently undergoing rigorous translation and legal scrubbing processes, and by the end of this year we should have IA-CEPA over the line, and be underway with the important job of ensuring its successful implementation. Our Conference will be a key forum for the benefits and opportunities expected to come from IA-CEPA to be discussed and dissected, and for businesses to rub-shoulders with those at the forefront of its rollout.

In the meantime, our Department of Foreign Affairs & Trade has made available some background on the Agreement, together with an explanation of some of the key outcomes for both countries.

We look forward to seeing you at our Conference in November. An event not to be missed.

Phil Turtle
National President

AIBC Biennial Conference 2018

"Partnering for Prosperity in a World of Change"

With evolving relationships between world powers, a challenging international economic system and new business models and technologies, what are the opportunities as Australia and Indonesia seek to strengthen a partnership for mutual prosperity?

Last week AIBC launched its flagship event for 2018, the AIBC National Conference to be held Nov 11-13 at the Surfers Paradise Marriott Resort & Spa, on Queensland’s world famous Gold Coast.

The Program will feature:

• Hon. Annastacia Palaszczuk MP, Premier of Queensland;
• Hon. Karen Andrews MP, Australian Minister for Industry, Science and Technology;
• Hon. Dr Andrew Leigh MP, Australian Shadow Assistant Treasurer & Shadow Minister for Trade in Services;
• H.E. Tom Lembong, Chairman, Indonesia Investment Coordinating Board (BKPM);
• Prof Dr Ir HM Nurdin Abdullah, Governor of South Sulawesi;
• H.E. Gary Quinlan AO, Australia's Ambassador to Indonesia;
• H.E. Kristiarto S. Legowo, Indonesia's Ambassador to Australia;
• Mayor Tom Tate, City of Gold Coast;
• Bill Farmer AO, Conference Patron and Former Australian Ambassador to Indonesia;
• Prominent business, government and academic leaders from both countries.

Other Dignitaries are expected to include:

• Senator The Hon. Simon Birmingham, Australia's Federal Minister for Trade, Tourism and Investment;
• H.E. Budi Karya Sumadi, Minister for Transport, Republic of Indonesia
• H.E. Arief Yahya, Minister of Tourism, Republic of Indonesia (TBC);
• The Rt Hon. Graham Quirk, Lord Mayor of Brisbane (TBC)
   

The Hon. Andrew Robb AO, Chairman of Asialink and Asialink Business, and Australia's former Minister for Trade and Investment, will deliver the Keynote Address at the Gala Dinner on the Monday evening.

To view the Conference Program, please click here.  Pricing and additional participant information can be found here.

To Register as a participant, please click here for more details, then click the “Register" button above and enter your details.

Register before 15th October 2018 to receive the discounted Early Bird Rate!

To take advantage of this unique event as a Sponsor Partner, please click here for more details.

As preparations continue for AIBC’s Biennial Conference in November on the Gold Coast, please continue to look out for further announcements here in AIBCnews, via our AIBC National Twitter account and by following #aibc18.  We hope to see you there.

As you can see from the collected feedback from our last Conference in Perth, the event was a major success, and one we are looking to surpass.

Any enquiries can be directed to president@aibc.com.au.

Sulawesi Disaster – Australian Red Cross Appeal

The tragedy which has struck the Indonesian island of Sulawesi is still unfolding, as the true magnitude of the loss is slowly revealed.

“A 7.4 magnitude earthquake hit Sulawesi on Friday 28 September, triggering a powerful tsunami wave. More than 800 people are confirmed dead and the toll is rising. Thousands more need urgent help.”

International aid is now on the way, and the AIBC will be making a contribution to these efforts through support of the Australian Red Cross initiatives.

To visit the Australian Red Cross website and donate click here.

IMARC 2018, Melbourne

The AIBC’s National Mining & Energy Group is participating in the 2018 International Mining and Resources Conference (IMARC) in Melbourne during 30 October – 1 November as both a supporting chamber and exhibitor.  Already the region’s largest minerals and energy industry meeting, IMARC’s fifth edition event takes on additional global industry significance due to the parallel and connected meeting of the International Council on Mining & Metals which represents the world’s largest resources companies.

AIBC members will be presenting on their company activities to over 6,000 high-level delegates during the conference and particularly on Indonesia in Southeast Asian panels and the Investment Round Table.

The AIBC’s compact and high-profile exhibition booth at C17 has been made possible by the sponsorship of EMR Capital, Nusantara Resources and Gilbert + Tobin. It will highlight the success of Australian investments in Indonesian resource projects by companies that understand Indonesia and work within Indonesian regulations, Indonesia’s position as one of the biggest foreign market for Australian METS (mining equipment, technology and services) suppliers and, coinciding with the imminent Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), the increasing opportunities for partnering Indonesian mining investments into Australia.

The IMARC exhibition area features a large number of activities and can be attended free-of-charge registration, please click here.  For further Program information, please click here. 

For AIBC rates at the IMARC Conference contact Geoffrey Gold, Convenor of the AIBC National Mining & Energy Group at
0466 972 8322 or gmgold@aseanstrategic.com.

2019 Presidential Election Update

AIBC is delighted to be working with the Australia-Indonesia Cente (AIC) on a range of collaborations, including the recent Guide to the 2019 Elections prepared by Kevin Evans, Indonesia Director of the AIC in Jakarta.  It promises to be an interesting year ahead with National Elections coming up in both Indonesia and Australia.

AIC and AIBC have also recently collaborated on a number of informative and well attended events in various cities around the country, and AIC is partnering with us on key elements of our upcoming Conference.

These collaborations are in the process of formalisation by way of a multi-facetted MoU, and we look forward to finalising that soon.  For further details, please click here.

NSW Update

Joint AIBC /AIC Event Breakfast Briefing hosted by PwC Tuesday September 11th 

Political Briefing by KevIn Evans Director AIC Jakarta and Education Higher Education sector briefing by Secretary General Ministry of Higher Education Dr Ainun Na’im. This was the first time we have had a joint event with the Australia Indonesia Centre and we were delighted to welcome an interested audience of over 40 to an early morning event.

Kevin Evans with over 25 years’ experience of Jakarta was able to summarise the current political landscape in Indonesia as we head towards the 2019 Presidential elections. Dr Na’im formerly from Gadjah Mada University, Yogyakarta provided a timely update on the Higher Education sector and opportunities for international education investments in Indonesia.

The event was covered by the Australian Financial Review who are preparing an article on the Education sector under IA-CEPA.
 

Roundtable at Shangri-La Hotel, Sydney 25th September

IIPC Sydney in Collaboration with the NSW Government, Austrade and supported by the Consulate General of The Republic of Indonesia, PwC and AIBC gather for a Roundtable at Shangrila Hotel Sydney

Roundtable of 30 invited Indonesian and Australian participants. NSW Chair invited to attend the Roundtable with special guest the Chairman of BKPM HE Thomas Lembong. Discussion on the current issues, trends, opportunities and a policy update with a focus on IA-CEPA.

Michael Fay
NSW Chairman

QLD Update

AIYA/AIBC Indonesian Opportunities Networking Event – 30 August

The month got off to great start with the successful AIYA Queensland/AIBC Indonesian Opportunities Networking Event. This annual event was well attended, with David Widjaja - AIBC QLD Vice Chairman, David Foote - Managing Director- Australian Country Choice Group of Companies, Councillor Angela Owen - Chairman of Council & Councillor for Calamvale Ward-Brisbane City Council, Liam Mckinnie – President of AIYA Queensland and Derek Brown – State Director of DFAT Queensland passing on some of their vast and practical knowledge of business in Indonesia to the gathered attendees. 

117th National Flag Day Ceremony

On 3rd Spetember, the Lord Mayor of Brisbane, Councillor Graham Quirk, invited David Widjaja, in his capacity as AIBC QLD Vice Chairman, to attend the 117th Anniversary of Australia’s National Flag Day. The event, held outside Brisbane City Hall in King George Square, was suitably well attended by both dignitaries and the public to mark this important occasion.

EY Visit and Presentation to Indonesian University Students

On 5th September in another exciting education cooperation between Indonesia and Australia, famous Indonesian University, Sebelas Maret University (UNS) has collaborated with Queensland based Union Institute of Language (UIL) to deliver a one-month UNS funded program to a group of Indonesian students in Queensland. While here the students learned about Australian culture, business practice and language. This exciting program has been imbedded into the UNS Degree program and will be ongoing with students coming to Brisbane each year. The above photos show the students with AIBC QLD Chair, Hugh Ritchie and AIBC QLD Committee Member, John Kimlin of EY, during their tour of EY where they received an insight into business in Australia from John. The group also spent time at TAFE QLD, Student One and numerous other Australian education institutions and businesses during their stay.

Hugh Ritchie
QLD Chairman

SA Update

AIBC-SA was one of the key supporters of the "Forum on Business Opportunities in West Java", held at the Mercure Grosvenor Hotel in Adelaide on 4th of September. The forum was organised by the Indonesian Consulate General in Sydney, in conjunction with representatives of the West Java Provincial Government and Bank Indonesia. AIBC-SA Branch Chairman Jim McMillan was facilitator of the Forum, which was attended by the Indonesian Consul General for NSW, Qld and SA, Pak Heru Hartanto Subolo, and around 30 people from SA Government agencies and the SA business community.  There were 3 presentations:

Selected Investment Opportunities in West Java by Deni Rusyana from the West Java Investment Agency, which included information on investment incentives and on infrastructure projects.

Presentation Book of West Java 2018 - this was also distributed as an upmarket booklet. The presentation was by the Director of the Bank Indonesia office for West Java.  The top 5 sectors for Foreign Direct Investment in West Java are residences, industrial area and offices (37%), metal, machine and electronic (10%), automotive and other transport (10%), electricity, gas and water (7), chemical and pharmaceutical (7%). Investment projects they are promoting are in tourism, microcell pole, drinking water supply, the new airport.

Investing in Indonesia, by Ruly Fitra, Deputy Director of the Indonesia Investment Promotion Centre (IIPC) in Sydney - this presentation was about the investment climate and opportunities (especially tourism and e-commerce) in Indonesia. It includes information on which sectors and parts of Indonesia have Australian Foreign Direct Investment, and on fiscal incentives.

The next AIBC-SA members event will be our bi-monthly networking drinks - to be held on Wednesday 17th October, from 5pm, at "55ml" (33-35 Mill Street, Adelaide).

Pictured from left to right:  Pak Heru (Consulate General), Will Angove (AIBC), Jim McMillan (AIBC), Ibu Silvia Malau (Consulate General), Andrew Bain (AIBC) and Blaine Gordon (AIBC).

Jim McMillan
SA Chairman

IndoView

IACCB Update

Following the successful Commercial Viability Assessment of two project partners in Kalimantan (PT Buana Karya Bhakti and PT Kalteng Andinipalma Lestari), the IACCB team completed a Commercial Viability Assessment of two project partners’ operations in East Java (SPR Mega Jaya) and Bengkulu (PT Bio Nusantara Teknologi) in late August 2018.

At the Indonesian and Australian Cattle Breeding Programs Symposium on 12 September 2018 in Jakarta, these four cattle breeding enterprises were awarded Certificates of Achievement for their efforts in pursuing herd productivity, cost control and managing the broader environment. They have been assessed as potentially commercially sustainable following more than 18 months in partnership with the Indonesia Australia Commercial Cattle Breeding Program (IACCB).

For more information on the program, please click here.
 

Tim Harcourt – “The Airport Economist” on Indonesia

Renowned business commentator and economist Tim Harcourt (aka “The Airport Economist”) has released a range of videos and other materials, full of case studies and other useful insights to help business understand and get the most out of opportunities in Indonesia.

To view these, see Tim’s website here.

The OSS System for Investment Licensing

Peter Fanning, Indonesia Australia Businss Council, Foreign Legal Consultant, Hutabarat Halim & Rekan (peter.fanning@hhrlawyers.com)

Updated 25 September 2018

Government Regulation 24/2018 on the Electronically Integrated Business Licensing Service  (effective 21 June 2018) introduced a system of nationally integrated, online, business licencing across 20 business sectors (the Online Single System or OSS). This is a centralized system operating 24 hours a day. It involves the integration of 25 ministry agencies and 514 regional government licensing systems.

The OSS system was launched on 9 July, and is managed on an interim basis by the Coordinating Minister of Economic Matters until it is handed to the OSS Agency (Lembaga OSS), defined in the Regulation as a non-ministerial government body responsible for coordinating investment. This sounds like an expanded BKPM perhaps with a new name.

The system is accessed through oss.ekon.go.id. Some permits and licences however continue to be processed by BKPM.

Where administrative and technical requirements previously preceded the issue of a particular licence, the OSS system is based on issuing the licence first, and then, where applicable, requiring commitments to fulfill administrative and technical requirements before the licence becomes effective.

The system applies across 20 business sectors, as listed in Article 85. Remaining outside the OSS system are:

• Electrification, oil and gas, and mining (IUP) licences, to continue be issued by ESDM;
• Financial industry licences, to continue to be issued by OJK;
• Building business licences, to continue be issued by Public Works;
• Certain facilities to be approved by Finance;
• Representative Offices, branch offices, recommendations for VITAS, ITAS and ITAP, to be issued by BKPM.

To continue reading the entire article, please click here.
 

Freeport and Rio Tinto sign Heads of Agreement with the Indonesian Government

In his latest article, Bill Sullivan of Christian Teo & Partners, looks at the recent Heads of Agreement signed between Freeport, Rio Tinto and the Indonesian Government.

"The signing of a not legally binding Heads of Agreement, among Freeport, Rio Tinto and the Government, on 12 July 2018 was proclaimed by the Government to be a major achievement in completing the divestiture of majority foreign ownership of Freeport Indonesia and otherwise giving local parties control of Freeport Indonesia and the Grasberg Mining Project.

In over-selling and under-delivering on the Heads of Agreement, the Government has relied on an “old playbook”; namely, how the Contract of Work renegotiations were handled in the runup to the 2014 Presidential Election.”

To read this article in full, click here.
 

Indonesia Market Update

In their August 2018 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.