Debnath Guharoy,
AIBC National President

President's Column

Dear Members and Friends,

It’s been a month since the AIBC Conference in Perth and I think I have fully recovered!

What a Conference it was indeed. Bigger and better than anything we’ve ever put together, by all accounts. Almost 300 delegates and speakers from both counties. Two Australian Cabinet Ministers. Two WA Ministers including the Premier and the Indonesian Deputy Minister for International Tourism. The IA CEPA Negotiators. The two Ambassadors. Senior bureaucrats from the two governments. Several CEOs of major companies. The heads of the six Chambers that make up the IA Business Partnership Group, IA-BPG. And many other distinguished academics and professionals from a myriad facets of business. On behalf of AIBC, I thank them all once again. Last but not least, our Conference Convener and National Vice President Phil Turtle for his magnificent effort.

The discussions were lively and thought provoking. Under the overarching presence of the IA CEPA negotiations, each and every session over the three days added meaning to the theme “Breaking Barriers, Building Bonds”. The venue, the menu, the entertainment all added to the experience. The accolades are just too many to mention, but they are proof of the key benchmark: it was worth it, for all concerned. All presentations and photos from the event are now available via the AIBC website here. Many requests have been received and we hope you find them interesting and useful. The photos capture many of the facets of the Conference and much of the activity on the fringes of the formal proceedings. Raw video of all Conference sessions is also accessible via the AIBC Facebook page, however this is yet to be edited and added to our soon to be released YouTube Channel.

The Conference itself formed the second half of the inaugural Australia Indonesia Business Week (AIBW), following on from the Indonesia Business Summit and Indonesia Fair. This collaboration with our esteemed partners, the Embassy of Indonesia in Canberra, will be the subject of a detailed review, to identify what worked well and what worked less-well, so that future iterations will be enhanced by our experiences and learnings. I urge any who participated to share your feedback and ideas with me, so that we can put on an even better series of events next time around.

Talking of AIBW, I am delighted to learn from Austrade that the second IABW is scheduled for March 6-10 next year. AIBC stands ready to assist the effort in every way possible. Registrations have opened and I urge you to visit http://www.austrade.gov.au/events/iabw2017 for an overview of what’s in store. I look forward to seeing you in Indonesia, in one of the cities chosen as venues across the Week.

With TPP now officially pronounced dead by US President-elect Trump, the IA CEPA will only grow in importance. Against the backdrop of changing political, social and economic landscapes around the world, bilateral agreements will become invaluable. In particular, the IA CEPA is an opportunity to show the world that two very different neighbours can work together for the common good of their peoples. After initial signs of change, President-elect Trump continues to bolster the unpredictable facet of his character. Most significantly, he has rattled China. The verbal backlash has begun. We can expect more surprises on the world stage in the days and years ahead. Consequently, the US-Australia relationship will come under greater pressure in the region. Indonesia, ASEAN, India and China will be watching our every move. Looking at the situation positively, the President-elect is presenting an opportunity for Australia to show its true colours and shed the dubious mantle of ‘Deputy Sheriff’, once and for all.

Business has a crucial role to play by charting new courses, picking partners well and building enduring relationships. The Asian Century is not a cliché, hard numbers continue to illustrate the economic and political influence of the rising powers. With Indonesia at our doorstep, no better place to start making those changes for ourselves as a nation. Minister Cormann acknowledged AIBC's sectoral initiatives, urging for 20 more game-changing ideas across 20 industries that could foster hundreds of Australian-Indonesian partnerships. A good idea is where every good business begins.

On that note, here’s wishing you all a Merry Christmas and a Prosperous New Year! We look forward to seeing you for an exciting year ahead in 2017.

Warm regards,
Debnath

Northern Territory Update

AIBC NT Christmas Function for 2016

A little over 50 people attended a Christmas function held on 7th December at the Novotel Darwin Airport . The focus of the meeting was “Cultural aspects of doing business between Indonesia and Australia – with an NT focus”.

Guest speaker Dr John Ackerman visited us from Jakarta. John has a strong connection with the NT as he was working for MLA at the time and a key figure in efforts to work through the issues faced by the live cattle ban in 2011. John now works as an independent consultant . 

The evening was MC’ed with great skill and humour by Terry Mills who first introduced dancers from a young local dance group who gave a great performance, showing off their culture in dance to the delegates.

John Ackerman spoke about cultural aspects of "doing business in Indonesia". His main message was about keeping a focus on building relationships, being consistent and regular and working WITH Indonesian people to achieve joint goals. John showed his experience and knowledge in relating stories from his time in various positions in Government and private enterprise.

Following John’s talk were many questions from the floor and general discussion facilitated by Terry Mills.

Local people attending included delegates from Office of Asian Engagement, Trade and Investment, the Indonesian Consulate, local business people and representatives from many various organisations.

Sponsors for the evening included the Office of Asian Engagement, Trade and Investment , the Northern territory Cattlemen’s Association, South East Asian Livestock Services and Deloittes NT.

AIBC NT committee would like to extend our sincere thankyou to these organisations.

Also, a thankyou is extended to AIBC national for its support of this event, without which we could not have held the evening.

In all, it was a great evening. It generated much discussion and helped in connecting and reconnecting people who are working in the Indonesian and Australia interface.

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

Queensland Update

AIBC Queensland Christmas Networking Function

AIBC Queensland were absolutely delighted to host His Excellency, the Indonesian Ambassador to Australia, Bapak Nadjib Riphat Kesoema and his wife, on behalf of the Australia Indonesia Business Council (AIBC) at their Annual Christmas Networking Drinks in Brisbane on Wednesday 30th November, and kindly sponsored by CPA Australia. It was a special occasion to farewell the Ambassador as he finishes his term in Australia, and to thank him and his wife for their continued and unwavering support to AIBC over the years. Congratulations to AIBC Queensland for a stellar year and my appreciation to all our valued members and friends. Until next year!

Asia and the Northern Australia Development Initiative – a combined AIBC QLD and Griffith Asia Institute (GAI) event

On Wednesday 5th October, the Australia Indonesia Business Council (AIBC) in Queensland, the Griffith Asia Institute and King & Wood Mallesons were privileged to have the Hon Matthew Canavan, Federal Minister for Resources and Northern Australia, speak to invited senior members from industry and government regarding the development agenda for Northern Australia and the implications to our economic relationship with Asia. The Minister discussed the critical opportunities to support industry and build infrastructure in the north, as well as the importance of tapping into investment flows coming out of Asia. Attendees also had the opportunity to question the Minister on opportunities relating to specific projects coming out of the $5 billion Northern Australian Infrastructure Fund.

AIBC Networking Event: Federal Business Review & Market Update

On Thursday 13th October, the Australia Indonesia Business Council (AIBC) Queensland in collaboration with the Australia Indonesia Youth Association (AIYA) officially launched their pioneering report on the impact of the 2015 Federal Business Mission to Indonesia on Queensland businesses. Proudly hosted by Norton Rose Fulbright, the report was presented by John Bushell, AIBC QLD board member, and Stephanie Pearson, President of the Queensland Chapter of AIYA. It is hoped that the responses and recommendations coming out of this report will go some way in informing how these trade missions can maximise opportunities for participating businesses.

The report launch was followed by a special guest presentation from Oka Simanjuntak, Queensland's Trade and Investment Commissioner, who spoke on the current political and economic landscape in Indonesia, and the emerging opportunities in the Indonesian market.  To view a copy of the report, please click here.
 

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

ACT Update

The AIBC ACT Branch held a very successful function on 14 December 2016, at the National Press Club which was attended by some 50 people.  Guests at the function included representatives of Australian Business Volunteers, Australian Industry Group, Australia Indonesia Youth Association, the Australian National University, Austrade, Canberra Business Chamber, Canberra Region local government forum, the Canberra Institute of Technology, Coffeys, CSIRO, Ernst and Young, GHD, Innovate Canberra, the Indonesian Embassy, King and Wood Mallesons, KPMG, PwC, the Departments of Education and Training, Foreign Affairs and Trade and Industry and RSM Australia.

The recently appointed Commissioner for International Engagement Brendan Smyth briefed the guests on his role, the international strategy for the ACT and Canberra region and the importance of engaging with Indonesia.

The guests were also briefed by Austrade about the upcoming Indonesia Australia Business Week from 6-10 March 2017.  The last Austrade mission to Indonesia was in November 2015 and was very successful for participants in better understanding the market, making connections and securing new business. 

Coffeys, as the manager of the Australia Awards for Indonesia, also briefed guests on the opportunities for businesses in Canberra to provide mentoring and internship opportunities for the around 200 Indonesians that are in receipt of Australian Government scholarships and study in the Canberra region.  Mentoring and internships are an excellent way for Australian businesses, NGOs and government departments to make establish long term relationships with key Indonesian scholarship awardees at the Masters and PhD level who upon their return to Indonesia will be involved in critical work in government and elsewhere to develop Indonesia.  Interested businesses, NGOs and department can contact the ACT Chair on ACTChair@aibc.com.au to obtain further information about this opportunity.

AIBC was also pleased to announce that the Australian National University has become a Corporate Member of AIBC.

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

Victorian Update

Victorian Dairy on Show in Indonesia and Beyond

Recently Victorian Minister for Agriculture Jaala Pulford joined leading chefs from renowned international hotel chain the Accor Group and Indonesia’s next generation of hospitality professionals to showcase a range of premium Victorian dairy products at a cooking demonstration in Jakarta.

Minister Pulford said the Victorian Government hosted the event in partnership with Dairy Australia to support local dairy producers to access the fast-growing Indonesian market.
While not a traditional ingredient in Indonesian cooking, milk and cheese are proving increasingly popular with Indonesia’s rapidly expanding middle class.

Victorian dairy exports to Indonesia have grown from $120 million three years ago to $197 million in 2014-15, making it the state’s third largest international market for dairy behind Japan and  China.

On the same trip, Minister Pulford met with Fonterra’s President for Greater China, Christina Zhu, in Shanghai to discuss opportunities for expanding Victorian dairy exports to China.

“The Victorian Government is proud to be supporting our dairy industry to capitalise on export opportunities in high growth markets such as Indonesia and China,” said Minister Pulford.
 

Hamer Scholarships 2017

The Victorian Government is pleased to announced the next round of Hamer Scholarships for 2017. Applications will be open from 6 February - 11 March 2017 for intensive language study and cultural immersion in either China, Indonesia, Japan and Korea commencing from the second half of 2017. Please click here to view the flyer.


Art and Culture Scholarship

The Consulate General pf the Republic of Indonesia in Melbourne hereby informs that the Ministry of Foreign Affairs of the Republic of Indonesia in Jakarta has opened the program of "Art and Culture Scholarship/Beasiswa Seni dan Budaya Indoneisa (ACS/BSBI) and Indonesial Channel (InChan) for the year 2017. To view the announcement, please click here. To view the Tentative Application Form, please click here.

AIBC and AIYA Young Professionals Evening

In October, AIBC VIC in conjunction with AIYA Victoria held a Young Professionals Networking event at PwC Melbourne Offices.

The evening was highlighted by three highly regarded panelists and the coming together of so many young professionals and aspiring young professionals with a shared passion in the
Indonesia-Australia relationship.

For those of you who attended, we are ask a small amount of your time to complete the survey below that will enable us to tailor an interesting new initiative for young professionals that share your passion for Indonesia.

Please click on the following link:  Short Survey.
 

Murli Thadani,
Chairman-Australia Indonesia Business Council (AIBC) VIC
VICChair@aibc.com.au

South Australia Update

AIBC SA Christmas Networking Drinks

SA AIBC Christmas drinks event held on 1 Dec was a great way to recap the year for members and committee and begin collecting ideas for events and activities in 2017. We welcomed many new faces and past friends. Photo below.

Our first event in 2017 will be announced shortly, it will be focussed on making sense of free trade agreements, RCEP, and how South Australian businesses can squeeze benefit and opportunities from them. We are aiming to walk through some industry case studies, both realised and untapped, and will be welcoming some chief negotiators to the city to assist us.

Steven Baker,
Chairman-Australia Indonesia Business Council (AIBC) SA
SAChair@aibc.com.au

Indoview

Large shipment of breeders departs Darwin for Indonesia

A large shipment of heifers, believed to be the biggest single delivery of breeding cattle exported from Australia to Indonesia, will depart Darwin for Surabaya this week.  To read the entire article, please click here.
 

New Coal Pricing Rules for Mine Mouth Power Plants

In his latest article, Bill Sullivan of Christian Teo Purwono & Partners, looks at new Coal Pricing Rules for Mine Mouth Power Plants.

"A new regulation has made a number of important changes to Indonesia’s regulatory regime for pricing coal supplied to so-called 'mine mouth power plants'.

This new regulation highlights that Indonesia continues to struggle with how best to deal with the implications of low coal prices for the country’s continuing, long term dependency on coal for the satisfaction of its future electricity needs.

The Government is engaged in a delicate 'balancing act' between the competing imperatives of (i) the need to control power generation costs in a time of fiscal constraint and (ii) the importance of ensuring continued investor interest in and coal producer support for mine mouth power plants."

To read this article in full, click here.

The following articles on Indonesia have been written by Greg Earl, Former Asia Pacific editor and senior editor at The Australian Financial Review:

ASIA PACIFIC ECONOMY
Economic diplomacy brief: Train wars, ANZ exit, ASEAN talks, trade trouble, Bahasa lessons and more. To read the full article, please click here.


GLOBAL ECONOMY

Economic diplomacy brief: Crown crackdown, TPP friendly fire, Parkinson'’s law and more ..... continue reading this article here.
 

Indonesia's underrated economic lynchpin

How many people could name the closest large metropolis to Australia? Singapore, Wellington, perhaps even Port Moresby might come to mind.

But the answer is Surabaya, a place which was once the largest city in what was known as the Dutch East Indies and a much more important commercial centre than Batavia, as Jakarta was then known.  Click here to read the complete article.

Bali a new IT hotspot as innovation takes hold

When David Magson came up with the idea of running a software company out of an island better known for its beaches, he had to live with the inevitable sceptical comments about Silicon Bali.

But now, having ridden the mining boom and the IT-driven cost-cutting era in corporate Australia, his Australia-Indonesia collaboration is turning its attention to the new demographic challenge of healthcare.  To read more, please click here.