Phil Turtle
National President

President's Column

Dear Members and Friends,

Welcome to this first edition of AIBCnews for 2021. The year gone by has surely been a challenging one, with the “new normal” being redefined on an almost daily basis.

Front of mind for many is of course when we may be able to travel reliably and safely between our countries again, and much of that rests in the hands of our Governments and Medical Professionals as an array of COVID-19 vaccines roll-out in both countries.

Prime Minister Scott Morrison and President Jokowi receive their first COVID vaccinations

Around Australia, AIBC’s Chapters are rolling out a program of varied in-person and virtual events, with a large Perth audience recently hearing from Indonesia’s Ambassador, H.E. Kristiarto Legowo, during his brief visit to Western Australia. At this event Ambassador Legowo shared an update on IA-CEPA and related initiatives, as well as his ambitions for a strengthened relationship between Australia and Indonesia. The Ambassador kindly emphasised his own view of the “indispensable and irreplaceable” role that AIBC has served for many years in fostering trade and investment linkages.

Elsewhere in this issue of AIBCnews you can find more information on IA-CEPA and Indonesia’s new Omnibus Law, which together are designed to strongly increase the bilateral flow of trade and investment, at a time when both countries are looking for opportunities to return to strong positive economic growth.

There are undoubtedly more challenges and unexpected events ahead, and throughout this AIBC looks forward to playing an important role in extracting and promoting all possible opportunity for the benefit of businesses in both countries.

Wishing all a safe and prosperous year ahead.

Phil Turtle
National President

Spurred on by IA-CEPA, and despite the barriers to international travel, businesses are continuing to engage between Australia and Indonesia, and the various digital platforms are running hot. Supporting this, AIBC continues to host and/or participate in a variety of online and other forums regularly spotlighting a range of 2-way opportunities under IA-CEPA and more broadly.

Industry sectors such as the Australian agricultural industry see great promise in our evolving relationship with Indonesia, and this is articulated in this article.

Carrots, Australia’s largest vegetable export, are at the forefront of IA-CEPA

Alongside this DFAT’s “Blueprint for Trade and Investment in Indonesia” continues to be developed, and AIBC is looking forward to participating in the launch of this important document in the next couple of months.

Indonesia recognises IA-CEPA and other Trade Agreements as being important to Indonesia’s economic recovery from COVID-19, with this article exploring this.

Complementing the IA-CEPA is Indonesia’s Omnibus Law and the revision to 79 Regulations. Progress is steady on this and the new Negative Investment List (DNI) has been issued. For more on this see this article and Bill Sullivan’s review of this in the Indoview Section below.

Full and updated details on IA-CEPA can be viewed on the DFAT portal here.

A range of COVID-19 vaccines are now becoming available in both Australia and Indonesia, and it is hoped that the widespread and efficient rollout of these will soon have an impact. We remain optimistic that later this year, international borders may open up to some extent, and we can safely return to each other’s countries.

As part of Australia’s support for Indonesia’s recovery from COVID-19, DFAT has developed the Indonesia COVID-19 Development Response Plan.

A recent ABC article looked an some of the longer term health impacts for Indonesians from COVID-19.
 
For further information on COVID-19 responses, the Australian Government’s website here, remains a comprehensive portal to the very broad range of health and business related information.
 
Our counterparts at the IABC in Jakarta have been kindly circulating an updated informal timeline/overview, with the latest here.

Australia Day Awards 2021

AIBC extends congratulations to ANU’s Associate Professor Dr Greg Fealy AM, for his recent Australia Day Award as a Member of the Order of Australia for his significant service to tertiary education, and to Australia-Indonesia relations.

Dr Greg Fealy AM

Quoted by the ANU, Dr Fealy said “his Australia Day honour was ‘completely unexpected’ and a ‘wonderful surprise’.”

“I've done work on Indonesia and Australia-Indonesia relations because I've had a great passion for understanding Indonesia and for helping to ensure the two countries have the best possible relationship, so it's very pleasing to have this work recognised in this way," he said. 

"Recognition for anyone in the Indonesia studies field - this particular year it's me - is an indication that people in the broader community are appreciative of these efforts and the relationship between the two countries is valued, and knowledge of Indonesia is valued.

"ANU is one of the world's leading centres for the study of Indonesia and this award is partly a reflection of the excellent colleagues I have at ANU and the wonderful environment that has been created here for the intensive study of Indonesia.”

"This award reflects really well on the University's achievements in Indonesian studies for more than 70 years."
 
To hear Dr Fealy interviewed on this (Bahasa Indonesia), click here.

AASYP Break the Chain Programme

The AIBC is proud to support the ASEAN-Australia Strategic Youth Partnership, and in particular their Break the Chain Programme focussing on Modern Slavery, Human Trafficking and Forced Labour.

These issues are critically important for Australian Businesses from both the perspective of their legal obligations under the Modern Slavery Act of 2018, but also as they secure and protect ethical supply chains critical for sustained business success.

Congratulations to AASYP CEO and Co-founder Cameron Allan and the AASYP team for driving these great initiatives.

Asialink Leaders Program 2021

Long-time members and supporters of AIBC, Asialink Business, are launching their flagship Leaders Program for 2021.

“Asia is critical to Australia’s recovery. Now is the time to intensify, rather than pause engagement and the pursuit of long-term opportunities. We recognise that organisations now, perhaps more than ever, are looking for expert advice and guidance in relation to engagement with Asia.

For over 25 years, the Asialink Leaders Program has been developing Australian leaders at all levels of industry and across all sectors, to transform their skills and capabilities to do business in Asia.

The Asialink Leaders Program is the flagship program for developing Asia capability in Australia. It offers a transformational experience for emerging and established leaders. The program provides you with an exceptional opportunity for your professional growth, building critical Asia capabilities to meet the increasing demand for effective Asia engagement and will equip you with the insights, capabilities and connections to navigate complex foreign policy, business, cultural, political, ethical and regulatory environments in Asia, positioning you and your organisation for success with the region.”

To find out more or to apply click here.

AIYA Releases 2020 Annual Report

The AIBC is proud to continue to support the Australia Indonesia Youth Association (AIYA) on a range of initiatives throughout the year.

AIYA has recently released its 2020 Annual Report in both English and Bahasa Indonesia.

Congratulations to AIYA President Clarice Campbell and all her dedicated team on the great work they do.

AIBC National Healthcare Group Update

A recent Asia Taskforce Report on investing in Indonesian Healthcare

Since the AIBC’s National Healthcare Group was created in December 2020, Jeff Parker (the Group’s Chairman) has been consulting with AIBC members, partners and stakeholders (in Australia and Indonesia) to obtain thoughts and insights on how the Group might be best setup and operate.

Further input will be sought as the Group develops, and it will evolve to suit the needs of members over time. To support the Group a Microsoft Teams environment has been established, in which:

• Discussions are held and files, links, etc. are shared
• A contacts list of Group members and key stakeholders is available
• A map of the healthcare related organisational landscape in both Indonesia and Australia is available
• The latest news and updates can be read, shared and discussed
• Events and projects are collaboratively designed, planned and held

This Teams environment is available only for AIBC members. Existing members are encouraged to contact Jeff to discuss their membership of the Group.

In other news, members of the AIBC have been active members of a DFAT working group that is developing a Blueprint for Indonesia and Australia collaboration in the healthcare sector. Stay tuned for news on this as the paper will be published in the near future.

The Australia Indonesia Awards for 2021 was recently launched, and this year there is a Health category. Nominations close on 31 March, so please spread this news and encourage people (in Indonesia and Australia) who have demonstrated a commitment to enhancing relations between our countries to apply.

Further details of the Healthcare Group are available on the AIBC website here.

WA Update

WA Ambassador Breakfast Event

The AIBC WA was delighted to welcome H.E. Mr Y. Kristiarto S. Legowo, Ambassador of the Republic of Indonesia to Australia, on his official visit to Western Australia.

A capacity audience of over 120 people were in attendance for our first in person event for over a year with attendees drawn from both the business and government communities. They then heard a detailed and informative presentation on investment opportunities in Indonesia by the Ambassador following the entry into force of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), and the newly gazetted Omnibus Law, recently passed in Indonesia's Parliament. A subsequent Q&A session allowed several questions to be fielded and some further elaboration on how best to become involved in these trade and investment opportunities.

In attendance was The Hon. Mr Peter Tinley AM MLA Western Australia's Minister for Asian Engagement who reinforced WA's commitment to strengthening business ties with Indonesia.  Mr Phil Turtle, AIBC National President, delivered the vote of thanks and emphasised the fantastic work and pivotal role Ambassador Legowo plays in strengthening bilateral ties in Business, Trade and Investment between Australia and Indonesia.

AIBC thanks Ambassador Legowo and his VIP delegation for the highly successful visit to Perth, and breakfast event sponsors the WA Department of Jobs, Tourism, Science and Innovation and City of Perth for their kind support for this event, together with the Consulate General of the Republic of Indonesia – Perth and the Indonesia Institute.

H.E. Mr Y. Kristiarto S. Legowo, Ambassador of the Republic of Indonesia to Australia addressing the audience.
 

L-R: Consul General of the Republic of Indonesia in Perth Ibu Dewi Gustina Tobing, the Hon Mr Peter Tinley AM MLA Minister for Asian Engagement and H.E. Mr Y. Kristiarto S. Legowo, Ambassador of the Republic of Indonesia to Australia.

Robbie Gaspar
WA Chair

QLD Update

AIBC QLD & ITPC - IA - CEPA Business Networking Dinner

On the 25th of February AIBC Queensland co-hosted our first event for the year. Indonesia Trade Promotion Centre (ITPC) Sydney and Consulate General of the Republic of Indonesia in collaboration with Australia Indonesia Business Council (QLD) hosted an IA-CEPA Business Networking Dinner with the theme “It’s time to get to know your neighbour better” at Hilton Hotel in Brisbane. Bapak Heru Hartanto Subolo, Consul General of the Republic of Indonesia and John Kimlin, Board Member of AIBC QLD delivered keynote speech followed by a presentation by Ayu Siti Maryam, Director of ITPC Sydney. The event was fully booked and well attended by business leaders in Queensland.

Meeting with the Consul General of the Republic of Indonesia and the Queensland Minister for Agriculture Industry Development and Fisheries

On the 24th of February, the AIBC Queensland Committee’s Vice Chairman, David Widjaja, attended a lunch meeting with The Hon. Mark Furner MP, QLD Minister for Agriculture Industry Development and Fisheries and Bapak Heru Hartanto Subolo, Consul General of the Republic of Indonesia at the Parliament House. The meeting was focused on the great relationship that currently exists between Australia and Indonesia, the IA-CEPA and the opportunities for future partnership between both countries in the agricultural sectors. Minister Furner was also accompanied by Mr Robert Gee (Director General), Mr Elton Miller (Acting Deputy Director-General) and Dan McIntyre (Chief of Staff). Both the Minister and Consul General emphasised the important relationship between Queensland and Indonesia and are looking forward to keep strengthening the business relationship between the two.

Paul Martins
QLD Chair

Indoview

IIPC and BKPM Newsletters

The Indonesia Investment Promotion Centre (IIPC) has published its January and February newsletters with updates on Indonesia's investment climate and what's happening at IIPC Sydney.

Read the newsletters here and here.

BKPM in Jakarta also published their latest January and February newsletters, which can be viewed here and here.

New Approach to Construction Failure Liability

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at liability issues in the Construction Sector.

"A 2020 construction services regulation has given “new life” to Indonesia’s long existing but largely overlooked liability regime for defective construction of buildings and other facilities.

Poor quality construction services and resulting defective building/facility integrity can have very serious implications for energy, infrastructure, mining and oil & gas companies. As such, all companies operating in these industries should be taking careful note of Indonesia’s revamped approach to liability for defective construction of buildings and other facilities.”

To read this article in full, click here.

Mining Law Reforms and COVID-19

In another article, Bill Sullivan of Christian Teo & Partners, looks at Mining Law Reforms in the time of COVID-19.

"Indonesia introduced numerous reforms of its mining and related laws during 2020 in an endeavour to spur greater investment generally, including in the local mining industry and from foreign investors. These law reforms were undoubtedly the result, in part, of the impact on Indonesia of the economic recession triggered by the Covid-19 pandemic.

Other ASEAN countries, with mining industries, have also suffered from the economic recession triggered by the Covid-19 pandemic. Accordingly, it might seem probable that Indonesia’s ASEAN “neighbours” will, likewise, be eventually forced to pursue wide-ranging mining and related law reform programs in order to not lose out to Indonesia as a preferred destination for mining industry investment. This, however, depends on whether other ASEAN countries, with mining industries, have as great a need as Indonesia clearly does to make themselves more attractive investment destinations, particularly for foreign investment in their mining industries.”

To read this article in full, click here.

New Negative Investment List Issued

In this article, Bill Sullivan of Christian Teo & Partners, looks at the release of the new Negative Investment List.

"Indonesia’s long promised new Negative Investment List has now been issued.

While not really living up to the Government’s “hype” of this being the first time Indonesia has had a “positive” Investment List, the 2021 Negative Investment List is certainly a very material improvement on the previous 2016 Negative Investment List.”

To read this article in full, click here.

Microsoft to establish first datacenter region in Indonesia

Microsoft has announced its “Berdayakan Ekonomi Digital Indonesia initiative, which marks a significant commitment to advancing growth and digital transformation for Indonesia, its vibrant developer and startup ecosystem, enterprises, and the public sector. As part of the plan, Microsoft will establish its first datacenter region in Indonesia to deliver trusted cloud services locally, with world-class data security, privacy, and the ability to store data in country. Microsoft also announced plans to skill an additional 3 million Indonesians to achieve its goal of empowering over 24 million Indonesians by the end of 2021, through its long-established skills programs designed to create inclusive economic opportunities in the digital era.”

To read more on this, click here.

Beyond Bali and Bintang beer

KPMG’s Doug Ferguson and Dr Merriden Varrall recently shared their vision for a stronger future with Indonesia under IA-CEPA.

“A year ago, Indonesia’s President Joko Widodo became the 15th world leader to address the House of Representatives in Canberra. It was hoped that the visit would be the trigger for an upsurge in strategic co-operation between the two countries but with COVID-19 hitting the world immediately afterwards this has not happened, with the relationship remaining one of unfulfilled potential.

But the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), now in force, still provides a huge opportunity for the two countries to strengthen that relationship.”

To read more on this, click here.