Phil Turtle
National President

President's Column

Dear Members and Friends,

After strongly contested election campaigns in both countries, our respective leaders in Prime Minister Scott Morrison and President Joko Widodo have been successfully returned to office for another term. In President Jokowi’s case, this will be his second and final 5-year term, and many observers are speculating on what this may look like. For us time will tell of course, with hopes high that with IA-CEPA in our sights for ratification and entry into force this year, the relationship between Australia and Indonesia will continue to strengthen.

Already Australia’s newly reappointed Trade Minister, Simon Birmingham, has pressed for support for swift ratification of IA-CEPA, and of course AIBC has added its own voice to such calls; perhaps by the time of the IABC’s Conference in Bali at the beginning of November, we will have seen much progress.

Prime Minister Scott Morrison and President Joko Widodo together at the Presidential Palace in Bogor, West Java, August 2018 (Photo: EPA-EFE)

AIBC surely looks forward to continuing to work with a range of our key stakeholders in the promotion of IA-CEPA, and in its successful implementation, with both DFAT and Austrade being central to this. Recently in Perth, with the WA Government as hosts, the State Directors of both DFAT and Austrade addressed the combined Business Councils having a focus on Asian countries, sharing an update on their priorities and services to business. These presentations are a useful reminder of the critically important role both organisations play, particularly as we contemplate IA-CEPA, and can be viewed here and here.

2019 will undoubtedly be a defining year for Australia-Indonesia relations, and it is up to all of us to make a difference. Whilst the approximately 6,000 readers of this newsletter are generally amongst the “converted”, there is a large community in both countries that is yet to be exposed to, or convinced of, the opportunities that exist. If you haven’t already, please take time to familiarise yourselves with the essence of IA-CEPA, and become an advocate. It will be in all our interests, and for future generations of Australians and Indonesians.

Once again, the IABC Conference, to be held in Bali at the Pullman Bali Legian Beach Hotel this November 3-5, will be a great opportunity for all to gather and learn more, and participate in the important networking that is such a key part of our Conferences. Further updates will be made available as the Program is confirmed, and packages for Conference attendance released.

Phil Turtle
National President

Renewal of AIBC Membership

Current Membership Expires 30 June 2019

As the peak business body engaged in fostering trade between Australia and Indonesia since the early 1970's, we aim to help our AIBC Members take advantage of the rapidly growing business opportunities avaliable under the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Following the highly successful AIBC Biennial Conference, held last November on the Queensland Gold Coast, the AIBC very much appreciated the vibrant support, involvement and interaction achieved in 2018 as evidenced by the positive feedback received from a broad range of Sponsors, Delegates and Speakers which can be viewed here.

With Eight Chapters nationally, the AIBC team look forward to you continuing as our Member for the next twelve months. Please click here to renew your Membership.  If you  have forgotten your password or have any difficulty with the renewal process please email Jade Lee.  If you are not presently an AIBC Member and wish to join, please click here.

AIBC Welcomes New Intern - Jade Lee

The AIBC is delighted to make welcome Jade Lee, as our latest intern based in our Melbourne headquarters.

Jade also serves as Secretary of the Victorian Chapter of the Australia Indonesia Youth Association (AIYA), as is a passionate devotee of the Australia-Indonesia relationship. In her role Jade will primarily be assisting with Member relations, and supporting other AIBC activity around the country.

In Jade’s words "I was very fortunate to have been successful in being selected as AIBC’s intern, and this fantastic opportunity wouldn’t have been possible without being a part of AIYA. Since my encounter of Indonesian Language and Culture in secondary school, my passion to strengthen and improve Australia-Indonesia relations continuously expands. I am currently studying a Bachelor of Business and Arts, at Monash University, majoring in Economics and Bahasa Indonesia.

My experience so far at the AIBC has been lovely, I was warmly welcomed by the front desk staff at the International Chamber House as well as received many congratulations from the AIBC family from all over Australia. As I gradually intern here, I hope to learn and gain many new skills, establish strong relationships and develop my knowledge of Australia-Indonesia Business relations. Looking forward in being a part of the AIBC Family."

The AIBC is proud to provide such opportunities for young people from Australia and Indonesia, including via AIYA and the Australia Indonesia Youth Exchange Program (AIYEP), and note that previous interns have used their time and experience with AIBC to propel themselves into exciting new career directions.

Anyone wishing to make contact with Jade, can do so here.

AIBC at IMARC 2019

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

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

IMARC invites AIBC members to enjoy a 15% discount off early bird tickets to the conference. Simply register with the discount code MA1200AIBC by 5 July 2019.

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

Last year, EMR Capital, Nusantara Resources and Gilbert + Tobin Lawyers were the key sponsors of the AIBC booth at IMARC.

A limited number of sponsorships are still available for this year's AIBC booth and our separate, AIBC invitational function during IMARC. For details contact Geoffrey Gold, Convenor of the AIBC National Mining & Energy Group at gmgold@goldgroup.biz

Balai Bahasa Indonesia Perth – Michael J Concert Tour 2019

The AIBC is once again supporting Balai Bahasa Indonesia Perth (BBIP), as it prepares for the latest tour by acclaimed Indonesian performer Michael Jakarimilena (aka Michael J).
 

Michael Jakarimilena (aka Michael J) performing

This successful and enjoyable program, which further develops long-lasting and Important relationships, has been running a number of years with various private and government support. This year BBIP is also running a ‘Go Fund Me’ campaign to help bring the ‘Michael J School Concerts in Oz’ and ‘Kaya Workshops Program’ to Perth in August and September.

As well as the workshops-in-schools series during August and September, and the already sold out schools concert on 29 August, Michael J and his band, together with artist V1MAST, will be performing at an open air and FREE community concert on Sunday 15 September. Michael will sing a range of contemporary songs in English and Indonesian. We hope that many will be able to experience the amazing voice of Michael Jakarimilena and the talents of Toni, Deon and V1MAST.

Karen Bailey OAM, Chairperson of Balai Bahasa Indonesia Perth, said “You can help make this whole exciting program happen for the benefit of thousands of students in our primary and secondary schools, and for the broader community. This experience will be life changing for many young people in their journey to know and understand our closest neighbour, Indonesia.”

“Your donation, no matter how small, WILL make a difference …, so please click the link here and donate. Terima kasih.”

As a special thank you, any person, business or organisation who donates $100 or more will receive one invitation for each $100 donated, to attend a private and exclusive event for sponsors, with entertainment from Michael J, Toni, Deon and V1MAST.

Developing Northern Australia Conference

With the Northern parts of Australia only such a short distance from Indonesia, the AIBC is pleased to be supporting the upcoming “Developing Northern Australia Conference”.

“The annual conference will be held in Western Australia for the first time and discussions involving growth, progress and investment aligning the Northern Australia white paper is the focus.

The Developing Northern Australia Conference will be held from Thursday 11 to Friday 12 July 2019 in the City of Karratha, WA at the Red Arts Earth Precinct.

The conference is in its 5th year and attracts investors, policy makers, business owners, all sectors of government, decision makers, academics, visionaries, industry, researchers, Indigenous leaders and entrepreneurs that are all contributing to change and making a difference in Northern Australia.”

For more information, please see the Conference website here.

NSW Update

Networking event with Bill Sullivan, Senior Foreign Counsel, Christian Teo & Associates, Jakarta

A 'positive signal' for Indonesian mining was a highlight of the recent address to a joint Sydney meeting of the NSW chapter of the Australia Indonesia Business Council and AIBC National Mining & Energy Group, by Jakarta-based Australian lawyer, Bill Sullivan, Senior Foreign Counsel with Christian Teo & Associates and Senior Advisor to Stephenson Harwood LLP.

Hosted by AIBC National Corporate Member PricewaterhouseCoopers, his presentation, “Indonesian Mining Industry: Outlook after Presidential Election,” summarised the expectations of President Jokowi’s re-election - stability of government, winning the battle against corruption and increasing GDP growth to 7% - and the impact this may have on attracting foreign investment.

The government's main improvement to FDI in the mining sector is its divestiture evaluation methodology ... and the resulting positive signal sent to foreign investors by the US$3.83 billion paid by a state-owned enterprise to FXP and Rio Tinto to accumulate 51.23% of the Freeport Mine in Papua without direct management control.

He noted the signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement as an indication of the governments concern to address the current account deficit by trade and investment and suggested that energy and mineral resources will become a key government focus “in terms of both reducing imports and increasing exports.”

However, the differing views between Parliament’s Commission VII and the Ministry of Energy & Minerals Resources as to how to manage the mining sector, raises the possibility of the introduction of a new mining law in 2020 which might both undermine ”recent relative policy and regulatory certainty” and complicate progress towards “more rational mining industry policies.”

(L-R Bruce Fulton, Chairman, Sydney Branch AusIMM, Pat Hanna Cokal & AIBC NSW Committee & NM&EG member, Bill Sullivan, Steve Gemmel AusIMM member, Rod Elvish, Past President, AusIMM and Wendy Hartanti, PwC & AIBC National Treasurer).

ASEAN Australia Free Trade Agreements Panel Discussion

AIBC NSW invite you to join the ASEAN Business Councils (Indonesia, Malaysia, Philippines, Thailand) and Dentons for an informative panel discussion and networking evening that will focus on the impact, opportunities and challenges of Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) between Australia and the ASEAN region.

The aim for the evening is to help your business better understand and leverage these FTAs and EPAs to trade, invest and/or provide services to organisations whom operate in ASEAN member countries.

The panel consists of five (5) highly knowledgeable leaders in their field comprising:

• Caroline McCarthy, Department of Foreign Affairs and Trade, Assistant Secretary, FTA Investment, Digital Trade & Other Issues Branch;
• Ranitya Kusumadewi, Indonesian Ministry of Trade, Deputy Director, ASEAN Negotiations;
• Chester Brown, University of Sydney, Professor of International Law and International Arbitration;
• Sandra Seno-Alday, University of Sydney, Professor with the Sydney Southeast Asia Centre;
• Gary Dawes, NSW Business Chamber, Manager, International Business

Moderated by Lean Soh, Vice President of the Australia Malaysia Business Council and Project Officer with the NSW Department of Industry.

RSVP: Please click here to register for this event by Friday, 14th June.  Light refreshments will be served.

AIBC NSW would like to thank Academies Australasia for their sponsorship of this event:

Michael Fay, 
NSW Chair

QLD Update

AIBC Qld Vice Chairman, David Widjaja met with the Indonesian Consul General (Sydney) and Ibu Sri Mulyani, Minister of Finance in Brisbane on 4 May 2019. The Minister met with 12 students from the Ministry of Finance who are currently studying in Brisbane.

Paul Martins,
QLD Chair

TAS Update

Networking Event with H.E. Kristiarto Legowo and Ibu Spica Tutuhatunewa

The Tasmanian Chapter was recently privileged to host the Indonesian Ambassador to Australia, H.E. Kristiarto Legowo; the Consul General, Spica Tutuhatunewa; and representatives of the Indonesian Investment and Promotion Centre Sri Moertiningroem [Nunuk] and Puspita Paramitha.

The highlight of the visit was 32 guests at a business networking event held by the Australia Indonesia Business Council at the City of Launceston on Thursday 16th May. The Mayor of the City of Launceston welcomed the Ambassador, Consul General and guests and the evening featured presentations by H.E. Kristiarto Legowo, Sri Moertiningroem and Peter Craven President of the AIBC Tasmanian Chapter. We also had a  northern Tasmanian launch of the "Tasmanian Indonesian Strategic Engagement Strategy".

The next day was dedicated to an ASEAN forum held at the University of Tasmania on Friday 17th May. The focus of the forum was Indonesia, and we were fortunate to hold a panel discussion featuring members of AIBC Tasmania and Agung Sochirin, from the Indonesian Embassy Trade Attache'.

On late Friday night and throughout the weekend, the Breath of Fresh Air Film Festival added to the cultural experience by featuring four Indonesian films.

It is the first time that the Ambassador and Consul General and their delegation have visited Launceston and it was a significant commitment by them to spend this time with us.

Tasmania has significant business development opportunities in agriculture, renewable energy, education, maritime, shipping and aquaculture.

It was a great opportunity to showcase the work of the AIBC, the City of Launceston and the northern region of Tasmania.

Peter Craven,
TAS Chair

VIC Update

Indonesian Elections - What does this mean for Australian Businesses?

Indonesia's Joko Widodo has been handed a mandate to lead the country for another five years. He wants to continue on a path of building infrastucture, social capital and improving the nation's export capability. 

With Jokowi seeking growth in a number of ways, the question is how much political clout he has to make this possible. For instance, what will become of the ambitious infrastructure plan and will the country truly become open to more foreign investment as it seeks to improve job and training opportunities? And importantly for the relationship, will the economic and trade agreement, the IA-CEPA, be ratified and what will that mean.

Please join us on Tuesday 18th June for an evening of networking and learning about the recent elections in Indonesia and what it means for business in South East Asia’s biggest economy

Event Details:

Date:        Tuesday 18th June, 2019
Venue:      Level 5,  International Chamber House, 121  Exhibition Street, Melbourne
Time:        5:30PM for a 6:00PM start
Cost:         $20.00 - Members
                  $30.00 - Non Members
RSVP:       Please click here to register for this event.
                  Please note:  Registration is essential as Security Passes are required.

Panellists:

• Professor Vedi Hadiz, Director and Professor of Asian Studies at the Asia Institute and an Assistant Deputy Vice-Chancellor International at the University of Melbourne;
• Iwan Wibisono, the President of the Indonesian Diaspora Network Victoria;
• Brian Kraft, Indonesia Analyst  (including Cardno and Dragoman).

FOOTNOTE:  The official result found that the incumbent, President Joko Widodo, gained 55.5% of the vote. This is around double the winning margin he gained in 2014 against Prabowo Subianto  (who is challenging the result).  The election has also delivered Jokowi’s Coalition a majority in the House of Representative.

Jared Heath,
VIC Chair

Indoview

Expatriate Manpower Proposal - A Major Source of Concern

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the recent proposal impacting on companies engaging expatriate employees.

"Indonesia is proposing to significantly change the regulation of expatriate employment in a manner that has the potential to limit, even more than is currently the case, the positions that expatriates may fill.

The construction industry is facing the most serious potential limitations on expatriate employment.

Although the Expatriate Manpower Proposal is still a work in progress, it needs to be closely followed by all companies in Indonesia employing expatriates, including companies operating in the local energy, infrastructure and mining sectors.”

To read this article in full, click here.

Indonesia Market Update

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

To read this update, click here.

Noodle demand boosts wheat export - The West Australian

Indonesia imports 3-3.5 million of wheat for noodles each year, largely from their preferred supplier, Australia,” he said. “Due to its stability and magnitude, Indonesia’s noodle market, especially its instant noodle market, will remain a major source of Indonesia’s demand for Australian wheat.  To continue reading this article, click here.