Debnath Guharoy
AIBC National President

President's Column

Dear Members and Friends,

It's been a very busy few weeks at AIBC, across the country and in Indonesia.

Continuing the effort to find a platform that could engage the two neighbours across a broad spectrum of industries, I made my way to the "Invest Manado" forum May 23-24. Invited to speak as a guest of BKPM, Indonesia's investment coordination board, the forum was co-managed by PwC. The 93-strong Chinese delegation was led by Madam Zhao, a Vice-Chairman of the Communist Party. Team Australia comprised 13, from six companies.

From the outset, the focus on "One Belt One Road" and Manado's place in it was obvious. Important to China from their geo-political perspective and Indonesia's focus on FDI to boost infrastructure development, the forum appeared to have more than met its objective. But the Aussies in the room were left sharing one concern: the well-being of Bunaken Marine Park, a world treasure.

In preparation for the event, I had done my homework in Canberra. A meeting with DFAT resulted in a set of clear guidelines for Indonesian authorities to approach our embassy-directed KIAT unit in Jakarta, for assistance with feasibility studies. With Allaster Cox relocating as Deputy Head of Mission later this year, the dialogue will continue in earnest. The meeting with Senator Ferriavanti-Wells, Minister for International Assistance, underlined the purpose of the grant specifically aimed at assisting Indonesia meet its infrastructure needs. But the Manado forum was a revelation. Witness to the exchanges with the Chinese delegation in public, I wondered how the conversations in private may have gone with BKPM Chairman Tom Lembong and Tourism Minister Arief Yahya. I concluded that any request to KIAT from any Indonesian authority for assistance with a Masterplan for Manado was very unlikely. The Chinese desire to be involved in all aspects of their prospective investment was plain to see. No purpose would be served by our being caught in a tangle.

And so it was with immense pleasure that AIBC welcomed Prof Bambang Brodjonegoro to our shores. As Indonesia's Minister for National Development Planning, he has a holistic view of his country's problems and opportunities. From Agriculture to Education, Infrastructure to Tourism, his Ministry has overview and influence. It was that 360-degree view of Indonesia's future that he presented with great enthusiasm, knowledge and eloquence. The fact that he and his team had invested in a 5-day 5-city tour of our capital cities was not lost on the audience. Never in the history of bilateral relationships had a ranking minister from any country undertaken a roadshow of such proportions. The whistlestop tour comprised a public Breakfast address, one on one meetings with potential investors and a private luncheon meeting with industry leaders in each city.

You will see details of his visit in the updates by our State Chairs. Privileged to accompany the Minister across the country, I was amazed at the passion and energy he displayed every single day. His message rang cloud and clear: Indonesia wants Australia to be a closer neighbour and the best way to do that is to engage via the numerous business opportunities that exist. Labuan Bajo, one of President Jokowi's "Ten New Balis" was presented as an ideal opportunity for broad spectrum long term engagement, just across the water. A Tourism-led infrastructure development project, it has the potential of involving hundreds of our businesses - big, medium and small - for decades to come.

In my years at AIBC, never have I witnessed my fellow Australians respond so positively, in public and in private. The feedback, both verbal and written, has been both gratifying and reassuring.

The Minister was received very well in Canberra as well. The breakfast drew a full house, including Senators Reynolds and Watts and MP Hill. The visit to Parliament House, the meetings with Minister Ferriavanti-Wells, Minister Ciobo, the roundtable at DFAT, the interview with ABC's Chris Uhlmann all added colour to the roadshow.

The follow-up actions from such tours are vitally important for success. While I'm certain BKPM Vice Chairman Hariyoga and the rest of the Minister's team will continue the conversations with the individuals they met, AIBC is focussing on the opportunity that Labuan Bajo presents. We have invited one of our most-reputed companies to lead the charge. Many others have shown interest in joining the leadership team. Early days, but so far so good.

Indonesia's Planning Minister Brodjonegoro launched our AIBC Leadership Series with the first national tour. Encouraged by Australia's Foreign Secretary Frances Adamson to "keep up the good work", we recommit ourselves to doing just that.

I will take this opportunity to thank our sponsors: Austrade, Blackmores, CPA Australia, Corrs Chambers Westgarth, CocaCola Amatil, DFAT, EMR Capital, EY, NSW Government, TelkomTelstra, Woodside. Without their generous support, such a series could not have been launched nor can it be maintained.

Last and most importantly, a big thank you to Minister Brodjonegoro and his team, BKPM, IIPC, the RI Embassy and the Consulates General. You have made a big investment with your effort. You helped set the bar high and the next tour will have a high standard to match.

In the spirit of the season, Selamat Id Ul Fitri! Mohon maaf lahir bathin.

Debnath

ACT Update

Investments in Indonesia

AIBC in the Canberra region was pleased to have Minister Bambang Brodjonegoro address around 75 members and guests on 20 June 2017.  The attendees included the Ambassador-designate for Indonesia Kristiarto Legowo, federal members of parliament and Senators, representatives of the Office of the ACT Chief Minister, federal government departments, universities, industry associations and local businesses.

The Minister’s presentation on investment opportunities in Indonesia was very well received by those in attendance.  Photos of the event are below and you can watch the Minister’s presentation here.  Q & A of the event can be viewed here.

The breakfast presentation was followed by investor meetings and a meeting with senior representatives of DFAT, Treasury and industry associations and then an interview with ABC News.  The interview can be viewed here.  Further photos of the event can be viewed here.

IA-CEPA Negotiations

Members and guests will be well aware that the Australian and Indonesia Governments have prioritised negotiating a comprehensive economic partnership agreement.  A negotiating round was held in Canberra in mid-February and another in Jakarta in late May 2017.  The next round will be held in Canberra during the first week of August 2017.

The three Australian business chambers comprising the Indonesia Australia Business Partnership Group have agreed to host another networking function for Australian SMEs and the Australian and Indonesian negotiators at the National Press Club on evening 3 August 2017.  The networking function held in February 2017 in Canberra was well attended with over 170 members and guests, including a large number of representatives of Australian businesses that flew in for the function. 

Save the date and we look forward to greeting you at our next successful networking function.

Indonesian Ambassador
Members and guests will be aware that the Indonesian Government has appointed Kristiarto Legowo as its new Ambassador to Australia.  Ambassador Legowo presented his credentials on 27 June 2017.  Ambassador Legowo is a career diplomat who knows Australia well, having previously been the Deputy Head of Mission in Canberra from 2004-2007.

Joint Standing Committee on Trade and Investment Growth
Members and guests would be aware that the Joint Standing Committee on Trade and Investment Growth, which comprises Senators and Members of Parliament from both sides of politics, commenced an enquiry relating to the opportunities for trade and investment between Australia and Indonesia in late 2016.    Some 30 submissions were received, including from AIBC and a number of AIBC members, Government departments and other industry associations.   Debnath Guharoy (National President) and Tony Mitchener (ACT Branch Chair) appeared before the committee conducting the enquiry on trade and investment between Australia and Indonesia on 12 May 2017.

The Committee handed down its report on 19 June 2017 and a copy of the report can be accessed here.
 

Inside Canberra Magazine

AIBC is pleased to provide access to members at a significantly discounted rate the highly acclaimed Inside Canberra newsletter.

The Inside Canberra newsletter is the first and longest running political newsletter in Australia. It was founded in 1947 by Rob Chalmers who was a member of the Canberra Press Gallery for 51 years and holds the distinction of being its longest serving member.
Inside Canberra is now published by Keating Media direct from the Parliament House Press Gallery. Michael Keating is the Editor-in-Chief, John McDonnell is the Editor for the publication. Between them Michael and John have over fifty years’ experience in the business of governments at federal and state levels and internationally.

The editors of Inside Canberra focus specifically on situations confronting business and opinion leaders.

Members seeking to subscribe will need to complete the registration information on the last page of the newsletter.  Please click here to access Volume 70, No. 38, here for Volume 70, No. 39, and here for Volume 70, No. 41.

Inside Canberra have released a special annual subscription fee for AIBC Members of $175.

Tony Mitchener
Chairman-Australia Indonesia Business Council (AIBC) ACT
ACTChair@aibc.com.au

NSW Update

On May 30, NSW Chair represented AIBC at a seminar on ASEAN and Australia hosted by the the Director of South East Asia Centre at Sydney University ,Professor Michelle Ford. Speakers were the Ambassadors to ASEAN from Singapore and Malaysia and guests included the ASEAN Ambassador from Lao PDR , the Philippines and Australia's Ambassador to ASEAN Ms Jane Duke.

The NSW Chapter of AIBC has had a busy June with functions supporting the visit by Minister Brodjonegoro and his team and the visit to Sydney by Ms Mercy Simorangkir the Jakarta based Director of the NSW Trade and Investment Office.

Minister Brodjonegoro had a 30 minute face to face meeting at Parliament House with The Hon Niall Blair MLC NSW Minister of Primary Industry, Regional Water and Trade and Industry.

Minister Bambang Brodjonegoro and Mr Niall Blair NSW Minister for Trade and Industry Agriculture and Regional Water

After this meeting Minister Brodjonegoro presented an overview of Indonesian National Planning and Infrastructure targets to a group of 60 AIBC members and friends. The presentation was targeted, professional and very well received, provoking a number of questions from the audience.

The Indonesian party was welcomed by AIBC Chair Michael Fay and by Ms Simorangkir.

Minister Bambang Brodjonegoro speaking at NSW Govt and AIBC Business Breakfast NSW Parliament House

AIBC President Debnath Guharoy, Minister Brodjonegoro and NSW Chair Michael Fay

A full program of one on one meetings with leading Australian infrastructure mining, banking and construction companies was hosted in the morning and afternoon by Ernst and Young who welcomed a group of 20 leading business people to a lunch at their Sydney office. The group were also addressed by the Minister supported by his senior advisors.

On Thursday June 22nd AIBC Member HiFX sponsored a lunch for AIBC members to meet Mercy Simorangkir and NSW Government representative Mr Guy Boekenstein who had previously worked at the Australian Embassy in Jakarta. Guy is now based in Sydney where he is responsible for implementation of the NSW Government –Jakarta Capital City Government Sister State Agreement. Guest enjoyed an excellent buffet lunch, interesting updates from the speakers and an opportunity to network with new and old AIBC members. Thanks to Reza Cameron from HiFX

Mr Guy Boekenstein Department of Premier and Cabinet , NSW Trade and Investment speaks to Sydney luncheon guests

Director NSW Trade and Investment Jakarta office Ms Mercy Simorangkir addresses guests at Business lunch in Sydney sponsored by HiFX Thursday 22 nd June

Michael Fay
Chairman-Australia Indonesia Business Council (AIBC) NSW
NSWChair@aibc.com.au

NT Update

AIBC held a lunch meeting at Darwin Waterfront. Attending were the AIBC committee members -  Ibu Linda Reeves, Global Labour Solutions, Terry Mills Independent MLA, Kevin Mulvahil, South East Asia Livestock Services ,  as well as ex officio representatives from NT Dept. of Asian Affairs John McCue and Engagement, CEO of the NT Chamber of Commerce Brian O’Gallagher and representatives from the Indonesian Consulate Ibu Mila and Pak Jeferson .

Each representative gave an informal briefing of the state of affairs from their local perspective. This will become a monthly event on our local calendar.

Out of this meeting came some news;

• Chamber of Commerce NT is planning a trade mission to Manado in October;
• NT Government has made plans for trade missions but mainly to China and Japan – little mention of Indonesia so far;
• BKPM and the Government of North Sulawesi Province is hosting a an International Tourism Conference in Manado 23-24 May.

Eddie Morgan met representatives from the Indonesian Students Association NT with a view to including them in AIBC NT activities . Mbak Faatih Natasha Putri, President of the Association expressed a keen interest in making this connection, to pursue the opportunity to build on their network as well as working with AIBC NT to gain experience, but also to offer assistance to AIBC NT with a youthful approach to social media and our administrational needs.

We very much look forward to including this group in our network and the future opportunities it brings.

Eddie Morgan,
Chairman-Australia Indonesia Business Council (AIBC) NT
NTChair@aibc.com.au

QLD Update

On 22nd June 2017 AIBC Queensland welcomed H.E. Prof Bambang Brodjonegoro, Minister for National Development Planning, and his group during their five city tour of Australia. A business breakfast hosted by Telstra in their George Street headquarters was enjoyed by sixty people who then witnessed an absorbing presentation by the Minister outlining his Government’s plans for economic development through investment, including foreign direct investment (FDI) and institutional investment. He described FDI opportunities in the sectors of tourism, infrastructure and industry. In the tourism sector the Minister stressed opportunities of particular potential appeal to Australian investors in the tourist destination project of Labuan Bajo in Nusa Tenggara Timur – the region of Indonesia geographically closest to Australia.

AIBC Queensland thank Telstra for their support through hosting the function and their ongoing successful investment example provided by the joint venture PT Telkomtelstra in Indonesia.
Following the morning public session the Minister held a restricted meeting with the Queensland State Government Treasury to discuss investment opportunities and Queensland activities in the space.

CPA Australia hosted a business lunch for senior Queensland executives at their Eagle Street offices.  Following lunch Minister Brodjonegoro addressed the gathering on investment opportunities and plans developed by his Ministry. At both the morning session and the early afternoon opportunity the Minister answered questions assisted by the Deputy Chairman for Investment Promotion from BKPM, Bpk Himawan Hariyoga. The discussion opportunities were moderated by AIBC National President, Debnath Guharoy.

AIBC Queensland thanks CPA Australia for hosting the lunch and the Minister’s presentation and discussion period.

Himawan Hariyoga, Deputy Chairman BKPM, responds to questions with Minister Brodjonegoro and AIBC President Debnath Guharoy

Early afternoon meeting attendees at CPA offices in Brisbane.

The Department of Foreign Affairs and Trade (DFAT) in conjunction with the Australia Indonesia Business Council (AIBC) Queensland Chapter hosted IA-CEPA event in Brisbane on 17 May 2017. Ms. Trudy Witbreuk, Australia's Lead Negotiator for the IA-CEPA updated on the progress of the discussions just prior to the next round of negotiations scheduled for late May in Jakarta.

Ms Trudi Witbreuk and AIBC QLD Chair David Widjaja

AIBC QLD hosted a table at the annual Lord Mayor's Multicultural Scholarship and Business Mentoring Dinner Awards which is a key initiative directly funded through the business dinner. This year close to 300 scholarship recipients have been supported through the program since 2008. The scholarship provides opportunities for emerging entrepreneurs and business people in Brisbane's Multicultural Community.

AIBC Guests at the Lord Mayor's Multicultural Dinner

David Widjaja,
Chairman-Australia Indonesia Business Council (AIBC) QLD
QLDChair@aibc.com.au

SA Update

Adelaide institute for International Trade Event - May 2017

AIBC SA and the University of Adelaide's Institute for International Trade co-hosted this event in May where AIBC, IIT and the University of Adelaide are actively pursuing increased engagement with industry and seeking to work collaboratively with organisations to find opportunities where our collective broader academic/research/business experience might be of use.  Please do not hesitate to contact us by clicking here if we are able to assist.
AIBC SA would also especially like to thank the Department of Foreign Affairs and Trade, State Director Dave Gordge and Deputy Director Barry Patterson for their support in sourcing and attracting to Adelaide our guest speaker today, Peter Roberts OAM.

We noted that businesses, media, community, the public commented how Trade Agreements are under-utilised largely because of a lack of knowledge about them and how to leverage them. This was in May 2016, the Trans Pacific Partnership was still breathing, Trump was only an outsider, the British hadn’t yet gone to the polls on Brexit. That was only one year ago. And here we are today.

What were we hearing still holds true:

• Length and complexity - President Donald Trump for example criticized the TPP agreement for being too long and complicated, saying, “it’s 5,600 pages long, so complex that nobody’s read it”. Trade agreements are tackling disguised restrictions on trade that must be tabled and negotiated through. Non-tariff barriers to trade, such as different standards and regulations, are complex. National firms on both sides are lobbying their own governments to enact regulations that are designed to keep out foreign firms and competition.
   
• Secrecy of negotiations - As with many trade agreements, until being finalized, negotiations are generally conducted with significant secrecy. Drafts of agreements are kept classified during negotiations, and access to the working text is significantly restricted even for government officials and business representatives involved in the talks. But this is needed to preserve negotiating strength and to encourage our partners to be willing to put issues on the table they may not otherwise.

For Australia, our international trade agenda has been placed under some pressure, in particular from the US withdrawal from the TPP and what to make of a “TPP 11”. The real benefits and the adoption of associated new measures of the WTO Trade Facilitation Agreement will await implementation by contracting nations; other regional deals of RCEP and with India seem to have stalled and appear a long way off.

Indonesia, one of our most important bilateral relationships in almost all areas. Yet the Australia-Indonesia bilateral relationship is continuing to underperform in trade and investment (relative to the other areas of our relationship). I won’t bore you with stats, needless to say:

• There still remains a degree of public distrust on such things as Halal certification requirements;
• Australian companies have struggled with opaque and inconsistent regulation in Indonesia – Indonesia is one of the most difficult countries in which to do business;
• Trade in agricultural products presents a tough set of issues - protectionist policies in Indonesia on one hand, and facilitating Indonesian supply of foodstuffs through the rigorous Australian quarantine system on the other;
• Trade in services is growing faster than trade in goods, but many sectors where Australia and Indonesia have strong complementarities remain closed to foreign investment or are tightly controlled. These include legal, audit, health, education and mining services.

But by the mid-point of this century, Indonesia will be the fourth-largest economy in the world after the US, China and India. Australia’s North Asian partners are already active in Indonesia, laying the groundwork for future Indonesian investment flow to North Asia. We are lagging. Can Indonesia Australia-Comprehensive Economic Partnership Agreement (IA-CEPA) be the catalyst for a coming together of the two countries, as close as possible, in economic terms. Making this task a little easier is the fact that our economies, our assets, our workforces, our skills, are all complementary, not competitive. We really only compete on coal with Indonesia recently surpassing Australia as the No. 1 global coal producer.

How can businesses benefit from the trade agreement?
How does preferential status work, how practical could it be for SA exporters, importers, service providers?

What support is available to help businesses expand into Indonesia and unravel the noodle bowl of agreement provisions? 

We believe that in regards IA-CEPA the governments of Australia and Indonesia have conducted one of the most engaged and transparent processes they possibly could and many of us here today have been involved in providing input to shape the economic relationship. I point you to the series of programs that have been developed alongside IA-CEPA across the two countries since our respective Ministers for Trade agreed with gusto to reactivate negotiation on IA-CEPA in March 2016. Joint recommendations, sectoral initiatives and ideas have been presented by the Indonesia-Australia Business Partnership Group (IA-BPG) of which AIBC is a leader. An Adelaide Forum was held last year chaired by myself and DFAT. You can find AIBC’s updated report and contributions to the negotiations by clicking here. 

VIC Update

Minister Bambang Brodjonegoro's Melbourne Breakfast

At Corrs, we were delighted to host visiting Minister Bambang Brodjonegoro and his team on June 23. Capping his whirlwind 5-day 5-city tour, the Minister made his pitch to the Breakfast gathering with enthusiasm and verve. Even to the Indonesianistas in the room, his presentation of the facts and figures that herald Indonesia's economic potential made its mark. Everyone recognised the opportunities across the water, and our capacity to engage.

The private meetings that followed brought in many of the best names from Melbourne's financial world. As did the private luncheon meeting. These conversations are particularly noteworthy as they reflect an interest in Indonesia's infrastructure needs.

Here are some of the pictures from the day.

AIBC VIC Young Professionals Launch

On 30 May 2017, the AIBC Victoria Young Professionals was launched at an event kindly hosted by Baker McKenzie.  Over 30 enthusiastic young professionals attended to hear more about the opportunity to get involved in the AIBC.  John Mollard, Global Head of Mining and Partner at Baker McKenzie, and Amelia Fyfield, Senior Trade Manager in the Victoria Government and AIBC Victoria Committee member, spoke about their respective experiences of the bilateral relationship and the opportunities available for young professionals.  A number of those attending volunteered to join the Victoria Young Professionals committee and another event will be organised later in the year.

The launch was a social event that provided great opportunities to learn about the AIBC Victoria Young Professionals and meet experienced AIBC members.

The event was attended by Australian and Indonesian young professionals who share a passion for growing and developing the Australian-Indonesian relationship. To continue reading Eliza Tans brief on the evening, please click here.
 

AIBC VIC Chair - Jared Heath welcoming the audience

Jared Heath, AIBC VIC Chair with VIC Committee Member Amelia Fyfield, John Mollard, Candice Coleman and Arfadh Baparsyah also of Baker McKenzie

Jared Heath
Chairman - Australia Indonesia Business Council (AIBC) VIC
VICChair@aibc.com.au

WA Update

AIBC WA - Visit by Minister H.E. Prof. Bambang Brodjonergoro

AIBC in WA was delighted to welcome H.E. Prof. Bambang Brodjonegoro, Minister for National Development Planning, on the first leg of his Australian tour as a guest of AIBC.

Opening the breakfast event, newly elected WA State Government Minister for Asian Engagement, Hon. Bill Johnston MLA, reinforced WA's commitment to strengthening business ties with Indonesia. The Minister himself studied in Bandung, West Java, speaks Bahasa Indonesia, and is a strong advocate of closer linkages with Indonesia. In his address he also reflected on his proud membership of AIBC, and the importance of being involved with AIBC and its mission.

A capacity audience, drawn from the business and goverment communities, then heard a detailed and informative presentation on Investment Opportunities in Indonesia by the Minister, together with an update on Non-Government Budget Investment Financing (PINA). The subsequent Q&A session, allowed a number of questions to be fielded, and some further elaboration on how best to become involved in the investment opportunities on offer.

Phil Loader, Executive Vice President, Global Exploration for Woodside Energy, delivered the vote of thanks and emphasised the significance of Indonesia in Woodside's growth plans. Already Woodside's recently signed LNG supply contracts with Pertamina represent a significant lift in trade. Mr Loader also presented Minister Brodjonegoro with a very local token of appreciation, in the form of a Fremantle Dockers jersey and scarf (Woodside being proud sponsors of the Dockers).

The breakfast was followed by a series of one-on-one sessions and a board-room luncheon, with business leaders involved in Education, Energy, Mining, Agribusiness, Shipbuilding, Retail, Manufacturing, and Professional Services.

The level of enagagement and enthusiasm shown by many throughout Minister Brodjonegoro’s Perth visit was very encouraging, and paves the way for deeper engagement and ongoing conversations.

AIBC thanks Minister Brodjonegoro and his VIP delegaton for the highly successful visit to Perth, and breakfast event sponsors Woodside and luncheon hosts EY for their kind support.

Hon. Bill Johnston MLA, Minister for Asian Engagement

Minister Brodjonegoro addresses AIBC

Event audience

Event audience

Q&A with Minister Brodjonegoro and AIBC National President, Debnath Guharoy

Woodside’s Phil Loader, EVP Global Exploration delivers the vote of thanks

Minister Brodjonegoro with Phil Loader (Woodside)

One-on-one meeting with WA Universities

State of the Nation - Indonesia

As part of a National Series, held in collaboration with Asialink Business and Herbert Smith Freehills, around 80 guests gathered for the State of the Nation – Indonesia Event.

The primary themes explored were the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), currently under negotiation, and the business landscape affecting organisations operating in Indonesia.

The audience was first treated to varied and insightful presentations from visiting HSF Partner, David Dawborn, CEO of Steel Blue, Garry Johnson, Director of AIM WA/UWA Business School, Suzanne Ardagh, and Rob Delane, Special Adviser Agribusiness Expansion, Department of State Development - WA. With the event moderated by AIBC National Vice President, Phil Turtle, each speaker had a different and unique perspective to share, and in combination gave those attending some valuable ideas to take away with them.

A lively panel Q&A session followed with a number of questions focussing on advice for new entrants into the Indonesian market, and the current situation with anti-corruption initiatives, and practical measures to avoid the "corruption trap” that can be encountered.

Of course getting good advice is a highly recommended starting point, and organisations like AIBC, Asialink Business and Herbert Smith Freehills are all well placed to assist.

VIP guests included Consul General to Perth, Pak Ade Padmo Sarwono, and members of his Consular staff, Nicholas Henderson (Director – Asialink Business), Ross Taylor AM (President of the Indonesia Institute), and Debnath Guharoy (National President – AIBC).

AIBC extends its appreciation to its Series partners, Asialink Business and Herbert Smith Freehills, for their support of this event, and to all panellists who kindly contributed their time and expertise.

Garry Johnson, CEO Steel Blue



David Dawborn, Partner Herbert Smith Freehills (Jakarta)



Suzanne Ardagh, Director AIM WA/UWA Exec. Education



Panel Q & A

Audience Q & A/Ross Taylor AM, Indonesia Institute

AIBC Perth Glory Event - April 2017

On Saturday April 8 friends, family and members of the AIBC WA branch gathered at NIB stadium in Perth to see the penultimate game of the season between Perth Glory and the Brisbane Roar.  The event was kindly sponsored by Steel Blue,  a home-grown WA success story that have embraced stronger business ties with Indonesia and subsequently grown their business to become a leader in comfortable safety footwear.

During the half-time break Peter Bell, CFO of Steel Blue gave a brief summary of the Steel Blue business operations in Australia and Indonesia highlighting the successful establishment of Steel Blue’s manufacturing facilities on the outskirts of Jakarta.  To top off a great evening we were privileged to have Perth Glory CEO Mr Peter Filopoulos and several players pay us a visit during the game.

One very clear message of the evening was the uniting nature of sport, regardless of culture or background, we all shared a common interest in the world game of soccer.  The game finished with a convincing 3-1 victory to Perth Glory.  Perth Glory now  face Melbourne City on Sunday with third spot still a possibility and the opportunity to compete in the 2018 Asian Champions League.

Thanks go to our sponsors Steel Blue, supporting AIBC members, family and friends, and our highly valued AIBC committee member Robbie Gaspar for his hard work in leveraging his love for soccer and Indonesia in pulling together a very successful evening.

Robert Sills
Chairman - Australia Indonesia Business Council (AIBC) WA
WAChair@aibc.com.au

Sports Diplomacy - Promoting Australian Rules Football in Indonesia

In late 2016 and early 2017, AIBC Young Professional Alexander Horton, together with Rory Brown and David Schmitdke spent 3 months in Indonesia participating in the Australian Indonesian Youth Exchange Program (AIYEP), a program that has now been running for 35 years and acts to facilitate cultural exchange between young future Australian and Indonesian leaders.

On the trip, as part of the community development phase, Alexander, Rory and David taught AFL 9’s football clinics at a local high school in Bulunkumba, South Sulawesi. The clinics were a huge success and after having imparted the physical education teacher with the rules of the game, they managed to incorporate Australian Football onto the school’s extra curriculum where it is still taught.

Due to the success of their experience on AIYEP, the trio are now planning to return to Bali in late 2017 in order to run more extensive clinics. Additionally, they will be incorporating life skills lessons such as litter education, leadership workshops and lessons on how to start your own NGO in order to encourage young Indonesian students to make a difference in their own communities.

They have been successful in obtaining an Australian-Indonesian Institute grant as well as the Australian Indonesian Research Centre Grant in order to carry out and evaluate their initial program, Those involved see great value in their program being continued and have partnered with Netball Indonesia in order to create and develop a program that acts to encourage a broad participation in sport from both young men and women. In preparation, they are hoping to develop relevant business, and not-for-profit links in order to create a sustainable program that aims to use sport as a diplomatic and development tool encouraging the interaction of young people of different cultures.

Of course developing such relationships plays an important role in developing the broader Australia-Indonesia relationship, and paves the way for deeper and more rewarding engagement, including in business.

Those interested in learning more, or hopefully able to assist, are encouraged to make contact with Alexander Horton: hortona@student.unimelb.edu.au

Upcoming Events

IABC Conference 5-7 November 2017:  Making it Happen - getting trade and investment moving

The Indonesia Australia Business Council is hosting its biennial Business Conference on 5-7 November this year in the business city of Surabaya, the city of the shark and the crocodile. This is the thirty-fifth of such conferences, hosted either in Indonesia, or by our counterparts in Australia.

Theme:

At the time of the conference, it is expected that the IA-CEPA has been all-but finalized, and be almost ready to be signed if not already signed. The agreement is intended to enhance the Indonesia-Australia relationship. The relationship is bigger than any particular agreement. But this agreement, and the atmosphere of cooperation which it will engender, will significantly enhance that relationship.

We must make it happen.

And during the conference we take a general look across the board at the economic and political forces shaping our future and discuss how they are looking, besides of course inviting comment from business.  For further details, please click here.
 

IMARC 2017 (International Mining and Resources Conference)

The AIBC is proud to be partnering with the International Mining and Resources Conference (IMARC) and invites you to attend the 4th annual event to be held in Melbourne from 30 October – 2 November 2017.

AIBC Members will receive a 10% discount at the time of booking, using a VIP Code that can be obtained via AIBC's Executive Officer, Sharon Enriquez, here.

IMARC is Australia’s largest mining conference bringing together over 3000 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators and educators from over 60 countries for four days of learning, deal-making and unparalleled networking.

The 2017 event will centre on the theme of ‘Creating Value Through Collaboration’ and will cover all aspects of mining; from exploration to investment, production to optimisation through to new technology, future energy as well as the brand new one day programme on mining infrastructure from pit to port.

For more details, please visit the IMARC website here.

The 10th World Chambers Congress

The 10th World Chambers Congress will be held in
Sydney 19-21 September, 2017.

The World Chambers Congress gathers an international group of chambers, business and government leaders.

• Provides you with unique trade, investment and business opportunities.

There is already significant interest from many international chambers including Afghanistan, Asia Pacific, Brazil, Colombia, Italy, Japan, Korea, Macedonia, New Zealand, North America, Saudi Arabia, South Africa, South East Asia, Sri Lanka, United Kingdom.

World Chambers Congress 2017 Website

Do not hesitate to contact Eddie Reginato, NSW Business Chamber on 0467.524.701 should you have any queries.

AIBC Young Professional - Speaker Profile Series

This month, we have 3 Speaker Profiles.  The first is Uni Lubis, Rappler:

“Always take every opportunity to learn new things and develop your networking skills. Every experience that you’ve had will make you grow and widen your knowledge.”  

To continue reading Uni's article, please click here.


A moment with Mark Soffer,  Former Chief of Staff & Country Operations Manager for Indonesia, telkomtelstra & Telstra Australia:

“With regard to doing business in Indonesia specifically, it’s relationship before rights, so make sure that you have built the foundation of a strong person to person relationship before you start expecting any kind of business relationship to form.”  

Please click here to continue reading Mark's article.


The final article pays tribute to H.E. Nadjib Riphat Kesoema, Indonesian Ambassador to Australia, Ministry of Foreign Affairs Republic of Indonesia.

AIBC Young Professionals were delighted Pak Nadjib took the time to give an insight into his time in Australia.  

“With their strong economic growth, Australia and Indonesia will be useful and give advantage not only to their own citizens, but also to citizens in other regions.”

To continue reading, please click here.

Indoview

Indonesia on the hunt for agtech innovations

By Dr Matthew Durban, Counsellor Commercial, Trade & Investment Commissioner, Indonesia

Indonesia’s agricultural sector is undergoing a transformation, as the next generation of farmers look to new technologies to increase efficiency and productivity. Australian agtech companies will find plenty of prospects, as well as the opportunity to work with Indonesia’s ‘agripreneurs’ and growing agtech startup sector.
Agriculture is vital to the Indonesian economy, accounting for 50 per cent of total employment in 2014 (FAOStat, 2014) and contributing 14 per cent to the country’s GDP in the same year (World Bank, 2014). According to 2015 World Bank data, some 33 per cent of the Indonesian working population are in farming, with the majority working less than one hectare (Sensus Pertanian).  To continue reading the full article, please click here.

New Pricing Guidelines for Indonesian Coal-Fired and Renewables Power

In his latest articles, Bill Sullivan of Christian Teo Purwono & Partners, looks at new guidlines establishing the power purchase price for coal-fired and renewables projects.

"Indonesia continues to seek ways to encourage the greater use of coal alternatives, in the form of renewable energy sources, despite the almost inevitable domination of coal for the foreseeable future.

Guidelines have now been issued for the purchase of electricity, from power plants utilizing renewable energy, which guidelines tie the purchase price to the regional cost of electricity production."

To read this article in full, click here.

"Having only recently introduced a new pricing strategy for the purchase of electricity from power plants utilizing renewable energy, Indonesia has now moved to extend a version of the new pricing strategy to the purchase of electricity from coal-fired power plants.

As coal-fired power plants are expected to provide the overwhelming majority of Indonesia’s electricity supply for the foreseeable future, the extension of the new pricing strategy, to the purchase of electricity from coal-fired power plants, is likely to have very significant implications for the economics of electricity production in Indonesia."

To read this article in full, click here.

Australian Grains Industry strengthens relationship with Indonesia

This month saw the Australian Grains Industry Conference (AGIC) assembled in Jakarta, to "reinforce the strong position that Australian wheat holds in Indonesia.”

Indonesia is Australia’s most important export market for wheat, with this trade representing some $1.5 billion (approx.) annually.

This trade though is under threat from lower cost producers in countries such as Ukraine, and it will be telling how the Australian industry will respond to such challenges.

To read the full Media Release from Grain Trade Australia, click here.

Indonesian sovereign rating lifted to investment grade by S&P

Following earlier similar moves by Moody’s and Fitch, Indonesia’s sovereign rating has been upgraded to investment grade by rating agency Standard and Poor’s (S&P).

Such an upgrade is seen as an encouraging sign for attracting essential foreign investment, from a broader pool of international investors.

This move has already seen a spike in the main stock index in Jakarta, and rallies in the rupiah currency and Indonesian bonds.

To read further, click here.

Regional Trade Ministers commit to a revived Trans Pacific Partnership

At a recent gathering in Vietnam, Pacific Rim trade ministers representing 11 countries, committed to moving ahead with a Trans-Pacific Partnership trade pact. This comes after President Trump withdrew the US from participation in the TPP upon his inauguration.

This “new” TPP is being dubbed as TPP2, without the US for the time being.

Australia’s Trade Minister, Steven Ciobo, hailed this development and was quoted as saying "the 11 countries recognised the benefits of pur–suing the trade deal, and were now assessing options to 'expedit–iously bring the agreement into force.’"

To read further, click here.