Phil Turtle
National President

President's Column

Dear Members and Friends,

Welcome to our new look AIBCnews and our refreshed logo and branding.

With IA-CEPA gathering momentum, even before the Agreement passes our respective parliaments, there is already a satisfying increase in activity and interest in the opportunities that are emerging. AIBC is excited to be part of this, and our updated look is timed to propel us into what will be a busy year ahead.

Our thanks to Dave Elliot at Fuel Creative, and Airan Pevcic and Melinda Samways the creative team at Imagesource, for bringing life to our new branding.

Imagesource’s Melinda Samways with our new AIBC banners ready for upcoming events around the country

As you’ll see from the rest of our newsletter, a lot has been happening, and much more is yet to come. In this past month I was delighted to be part of the Indonesia Study Tour hosted by Telstra and Telkomtelstra for Telstra Global Partners (full details below), as well as the roadshow conducted by Bahar and Pinsent Masons focusing on IA-CEPA.

On IA-CEPA itself, the Agreement was tabled with the Australian Senate on the 20th of March, as another important step forward towards its ratification.

Also, this month AIBC appointed Australia Awards Alumnus, Yudistira Adipratama, as an AIBC Ambassador, and we look forward to developing this role and to Yudistira’s ongoing contribution.

Later this year, AIBC will again be involved in the major International Mining and Resources Conference (IMARC), with an expanded focus on Indonesia. In this important sector, we are also developing our collaborations with AusIMM and Austmine (see below for further details).

In another collaboration, AIBC has also entered into an MoU with CAUSINDY and look forward to working with this exciting organization, and supporting their upcoming alumni conference in Darwin.

In closing I’d once more alert all to the IABC Conference to be held in Bali this November 3-5. There will be a lot to share there, with both countries having navigated their national elections, and with IA-CEPA hopefully taking further strong steps forward.

Phil Turtle
National President

NSW Update

AIBC NSW Indonesian Start-ups, Scale-ups & Tech Networking Event

On Wednesday evening, 3rd of April 2019, AIBC NSW jointly with Flinders University New Venture Institute and KPMG hosted a networking event for the first cohort in 2019 of the Australia Awards Indonesia Startup Ecosystem Delegation in KPMG’s Barangaroo Office. The event is held to serve as a platform for the delegates to connect with Australian businesses, enabling valuable knowledge sharing.

In the evening, we had a great opportunity to hear short key-note presentations from the Australian Award recipients  Even Alex Chandra (Bukalapak), Julian Tanoto Chan (Cloth Inc), Kartika Dwi Baswara (Kudo), Surya Adi Putra Halim (Qlue).

We also had the honour to have Sri Moertinigroem, Director at BKPM (Indonesia Investment Promotion Centre) Sydney in attendance.

Welcome for DFAT NSW Director

On Thursday, 14th March AIBC NSW convened a Welcome to the new DFAT NSW Director, Ms Trudy Witbruek.  This event targeted our National Corporate members and was hosted by King Wood Malleson in the Sydney CBD. It provided an opportunity to hear from one of the chief negotiators on the IA CEPA and also to thank Trudy for her excellent work on behalf of Australia over the past 3 years.

Trudy Witbreuk new DFAT Director for NSW addressing the audience.

At the conclusion National President Phil Turtle who was in Sydney for our March board meeting presented Trudy with a certificate of appreciation from AIBC.

Thanks to our host KWM for the fabulous venue.

AIBC National Board Meeting - March 2019

On Friday March 15th AIBC's National Board meeting was held in Sydney and hosted by NSW Department of Trade and Industry at the MLC Centre. Our Lunch guests were the Indonesian Consul General Pak Heru Subolo together with Consulate and ITPC representatives.

AIBC Board and Indonesian Consulate lunch guests March 15th in Sydney hosted by NSW Goverment.

NSW Committee members had a chance to meet the Board members over evening drinks before an excellent dinner at the Malaya Restaurant King St Wharf.

AIBC National Board

AIBC 2020 National Conference

AIBC NSW has expressed interest in hosting the 2020 National Conference in Sydney.  A decision on the final venue will be made by July 2019.

Michael Fay, AIBC NSW Chair and National President Phil Turtle

Roundtable Luncheon with Chris Barnes, Consul General - Surabaya

On Tuesday, 19th March we convened a members and friends lunch hosted by DFAT NSW to meet with our good friend Mr Chris Barnes, the Australian Consul General for East Java based in Surabaya. A great opportunity to share the knowledge and enthusiasm Chris has for the region and opportunities for Australian business including Education and Skills Training.

We would like to take the opportunity of thanking DFAT for hosting this event:

Michael Fay,
NSW Chair

NT Update

AIBC NT Business Breakfast Networking Event

On 20 March, AIBC NT held a Business Breakfast at the Consul General's Resident.  Hosted by Pak Dicky, the event was an opportunity to discuss an update on the opportunities now Australia and Indonesia have formally signed the IA-CEPA Agreement, together with an update on the Arafura Games.

AIBC NT Business Breakfast with Consul General Pak Dicky

Linda Reeves - AIBC NT Chair with Members of Darwin's WISMA Community and Consul General, Pak Dicky

Linda Reeves,
NT Chair

QLD Update

Roundtable luncheon with Chris Barnes,

Consul General - Surabaya

On 15th March, AIBC-Qld welcomed Australia’s Consul-General to Surabaya, Chris Barnes during March to brief members on the trade, investment and cultural links with East and Central Java.

Indonesian Elections - April 2019

On 15th April, Griffith Asia Institute members, Adjunct Professor Colin Brown, and Griffith Business School Deputy Head of Marketing Dr Denni Arli, will outline just what Australians need to know about the Indonesian elections and why we need to know it. With professorships in international relations in top-ranking Australian and Indonesian universities, the former Curtin University Dean of Faculty Professor Brown said the significance of this election for Australia was profound. The event takes place at the Griffith Asia Institute at South Bank.

Webinar Series

May will see the first of a series of webinars with Trade and Investment Qld’s Commissioner to Jakarta, Ben Giles as he provides Qld members with a market update and business trends.

Asia Pacific Cities Summit & Mayor's Forum

Returning to Brisbane, Qld from 7-10 July 2019 is the 2019 Asia Pacific Cities Summit and Mayor’s Forum. The event has become a key opportunity to connect and collaborate with key influencers of cities and join the conversation about the innovation, mobility, liveability and sustainability of cities. The Brisbane Convention & Exhibition Centre is the official venue of the 2019APCS. AIBC has been supporting the event and we expect a number of Mayors to travel from Indonesia and potentially a couple of Governors as well. Great opportunity to connect to Indonesia in our back yard.

Paul Martins,
QLD Chair

SA Update

Networking Luncheon with The Hon. Simon Birmingham, Minister for Trade

The SA Branch Committee was privileged to host a private lunch with Trade Minister Senator Simon Birmingham, immediately after his return from Jakarta for the signing of IA-CEPA.  Senator Birmingham is also a Senator for South Australia, and keen to discuss opportunities for SA businesses to expand exports of goods and services to Indonesia, especially in the high-end food and education sectors.  Attending the lunch were representatives from the Committee, the University of Adelaide's Institute for International Trade, and local Adelaide-Indonesian community business representatives.

SA Branch Committee with Trade Minister Senator
Simon Birmingham

Jim McMillan,
SA Chair

VIC Update

Doing Business in Indonesia for ICT and Tech companies

Global Victoria, in partnership with the Australia Indonesia Business Council (AIBC) is pleased to bring you this seminar where we explore the rapidly emerging Indonesian tech scene, and the capabilities you'll need to successfully engage with Indonesian businesses.

With an estimated 3.8 million new online users each month, Southeast Asia has been the fastest growing internet region in the world over the past four years.

And Indonesia is at its epicentre.

With over 215 million internet users by 2020, this along with growing disposable incomes, a burgeoning young population and the recent signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement, makes Indonesia an increasingly attractive destination for tech companies.

For further information and registration, please click here.  Please note, this event is complimentary, but registration is essential.

AIBC Victoria would like to thank Global Victoria for partnering with us to bring you  this event:

Business Networking Event with ITPC

On Thursday 4th April, AIBC in collaboration with the Indonesian Embassy and ITPC held a briefing on the Australian Auto Aftermarket.

Hosted by  H.E. Kristiarto Legowo, Indonesia's Ambassador to Australia and Ibu Spica Tutuhatunewa, Consul General for Victoria and Tasmania, guests heard from four speakers from the following companies who provided an insight into the challenges of exporting Indonesian Automotive products to Australia:

• Mr. Taufiq Setyawan, Overseas Director, PT Pertamina Lubricant;
• Mr. Dimas Prayudi, Director, PT Rekadaya Multi Adiprima;
• Mr. Rusli Handyanto, Marketing Manager - International DivisionPT Astra Otoparts TBK;
• Mr. Bayu Adiyasa Effendi, Assistant Manager – Sales (Export), PT Gajah Tunggal.

With over 40 guests in attendance, including The Consul General's economic team (Pak Zaenal, Ibu Orchida and Ibu Betha). AIBC were also please to welcome the Director and Deputy Director of ITPC (Ayu & Siti) as well as their technical staff (Hanif).

Following the presentations, the audience enjoyed networking and the superb Indonesian cuisine provided by Diana's Kitchen.

A link to the presentations can be found here on AIBC's Facebook Page.

Geoffrey Gold (AIBC VIC Committee Member) provides opening remarks

Pak Kris enlightening and welcoming the audience
 

Emmanuel Setyawan (AIBC VIC Member and Moderator) opening the event.  

International Women's Day 2019

On Friday, 8th March the joint Chambers of ICH held their 4th IWD collaborative event which was attended by over 480 Guests.  Guests were priviledged to hear from two keynote speakers - Melbourne's Lord Mayor, Sally Capp and Dio Chen, CEO Ouisa.  This year's panelists included Indonesia's Consul General for Victoria and Tasmania, Ibu Spica Tutuhatunewa, Elleni Bereded-Samuel, Vice President, Australia Africa Chamber of Commerce and Beverley Pinder, City of Melbourne.

The panel discussion provided guests with an insight into how each of their senior roles in vastly different organisations have allowed them to promote diversity and the benefits it brings for individuals and the broader community.  The session was moderated by Frank Ribuot, Chief Executive Officer ANZ, SEA and India & WGEA Pay Equity Ambassador at Randstad.

Melbourne Lord Mayor, Sally Capp welcomes guests

 Dio Chen, CEO Ouisa, sharing her remarkable journey with guests

(L-R) Moderator Frank Ribout with Panelists Ibu Spica, Beverley Pinder and Elleni Bereded-Samuel

Guests enjoying High Tea and Networking

Jared Heath,
VIC Chair

WA Update

Business Breakfast with Chris Barnes

On March 13, AIBC WA, together with DFAT in WA hosted Australia’s Consul General in Surabaya, Mr Chris Barnes at DFAT’s offices in Perth. With a sold out crowd, over 50 AIBC members and guests attended from a variety of industries and sectors looking to capitalise on the recently signed Indonesia-Australia Comprehensive Economic Partnership Agreement. Chris provided an overview specifically on the East Java economy and the opportunities for WA businesses in East Java.

(L-R) Julia Scott (AIBC WA Chair), Ibu Dewi Gustina Tobing (Consul General of the Republic of Indonesia, Perth), Chris Barnes and Dr Kate O’shaughnessy (Deputy Director, DFAT WA)

(L-R)  Chris Barnes and Georgia Gillies (Department of Jobs, Tourism, Science and Innovation) 

(L-R) An AIBC WA guest and Walter Gomes (Department of Jobs, Tourism, Science and Innovation)

Julia Scott,
WA Chair

Telstra Global Partners - Indonesia Study Tour 2019

From the 25th to the 27th of March, nine Telstra Global Partners participated in the first Indonesian Study Tour. The Telstra Partners were accompanied by Telstra representatives led by Marjet Andriesse, Managing Director APAC of Telstra Enterprise. The tour was organized in partnership and collaboration with Telkomtelstra. The group was also accompanied by Phil Turtle, the National President of the Australia Indonesia Business Council (AIBC).

The nine partners were Erico, Northbridge Secure, Calibre Gore, Advance Vision Technology, Schepisi Communications, Wireless Communications, Connectiv and Pivot Communications. All of these companies are successful ICT companies, partnering and leveraging Telstra capabilities and delivering Telstra solutions to the Australian and international market.

To read the full summary of the Study Tour, click here and the presentation given to the delegates by Telkomtelstra here.

AIBC Appoints Australia Awards Alumnus as "Ambassador"

The AIBC is proud of the association it has built over many years with the Australia Awards in Indonesia Program.

At our Conference last November on the Gold Coast we were honoured to host 10 specially selected Australia Awards Scholars, led by Yudistira Adipratama who recently completed his Masters of Law at the University of Melbourne.

Yudistira impressed all with his energy and enthusiasm as a Conference panellist, and AIBC is delighted to have him serve as an “Ambassador” for AIBC now that he has completed his studies and returned to Jakarta.

You can read a little more about Yudistira here, and the Australia Awards also posted a brief article regarding this appointment here.

Please join us in welcoming Yudistira to the AIBC Team.

Indonesia on the Agenda at IMARC 2019

The Australia Indonesia Business Council has again successfully supported Indonesia’s inclusion as a prominent regional topic in the 6th annual International Mining and Resources Conference & Expo (IMARC 2019) to be held in Melbourne during 29-31 October 2019, and the AIBC’s National Mining & Energy Group is well advanced in discussions to secure a prominently positioned advocacy booth to promote two-way investment and trade in the forthcoming IA-CEPA era.  This year's conference covers the entire mining supply chain; with special focus on exploration, project investment, M&As and joint ventures, digital transformation, and global opportunities and highlighting Energy (including clean energy and the critical minerals supply chain), EHS & the Community, the Workforce (including next generation empowerment and creating a workforce of the future), as well as Mine and Plant Optimisation.  For further information about IMARC 2019 and the AIBC National Mining & Energy Group contact Geoffrey Gold (gmgold@aseanstrategic.com).

Australia - Indonesia Sports Diplomacy

The role of sports in assisting people-to-people relationships between Australia and Indonesia has been recognised this month via AFL Indonesia affiliates in both countries. From its New York headquarters, Advance Global Australians – the Australian Government supported world-wide network of Australians living abroad – profiled Paul Halliday, co-founder and President of the Jakarta Bintangs Australian Football Club and Chair of AFL Indonesia.  View the article here.

It provides a fascinating insight into the growth of the Bintangs from an expat recreational group in 1995 to its incorporation as a sports association  and its mentoring of thousands of children participating in the sport. JBAFL: http://bintangs.com. In Australia Bayu Pratama, incoming President of Melbourne’s culturally inclusive Krakatoas Football Club  and a veteran of the AFL Indonesia Garudas national team participating in two AFL International Cups, has been nominated as one of only 10 participants in the Australian Football League’s first ever Community Ambassador Emerging Leaders Program. KFC.  Click here to view the article. 

Federal Budget Update 2019-2020

The Federal Budget 2019-20 was handed down on Tuesday, 2 April 2019. Some of the measures announced by the Government in the current year’s federal Budget include the following:

• A proposed increase in the annual cap for Work and Holiday (subclass 462) visas available to Indonesian citizens from 2,500 to 5,000 over a six year period to 2024-25;
• The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) was signed by the Australian and Indonesian governments on 4 March 2019. The IA-CEPA will over time provide significantly improved preferential duty arrangements or remove tariffs for 99 per cent of Australian goods exports to Indonesia;
• The Government has provided a boost to small and medium sized businesses, increasing the instant asset write-off threshold to $30k and extending the measures to include medium sized businesses which have an aggregated annual turnover of up to $50 million;
• Continued focus on measures aimed at addressing perceived tax avoidance by multinational corporations, including refinements to Australia’s hybrid mismatch rules;
• The Government announced it will provide $61 million over three years from 2019-20 to support Australian exporters.

Please contact Wendy Hartanti at wendy.hartanti@pwc.com should you have any questions.

AIBC Member Benefits

The Fairmont Jakarta have again kindly offered AIBC Members a corporate rate for bookings received during the 2019 year.  Please click here to obtain the 2019 rates.  Members need to contact Fairmont Reservations quoting AIBC Membership on Reservations.Jakarta@Fairmont.com

The Shangri-La have also offered AIBC Members a special rate for 2019.  Shangri-La bookings are made via this link that accesses AIBC Member rates.

IndoView

Indonesia-Australia Commercial Cattle Breeding Program (IACCB) Update

The first phase of IACCB was finalised on 5 February 2019. The program has been extended for two years to February 2021. The extension will test the commercial sustainability of its eight projects and three cattle breeding models. It will also ensure that there is adequate time to effectively promote the proven commercial models to investors and government.

Mr Dick Slaney has also completed his assignment as the IACCB Team Leader. IACCB’s achievements are a direct result of Dick’s hard work and dedication. Dick’s replacement, Mr Paul Boon, commenced on 21 January and has undergone a rigorous induction and handover process to ensure a smooth transition. Paul has extensive experience in managing community development and agriculture programs in Indonesia, and is committed to take the IACCB program to the next level. 

For more information on the program, please click here.

How Can Indonesia Take Advantage of the Belt and Road's Opportunities?

The BRI is a double-edged sword, how can Indonesia take advantage of the benefits and avoid the pitfalls?

By Muhammad Zulfikar Rakhmat and Andry Satrio Nugroho

There have been reports stating that China’s trade and investments in Indonesia have grown and expanded noticeably since the initiation of the Belt and Road Initiative (BRI) in 2013. The BRI, which focuses on infrastructure projects as a reconstruction of the old Silk Road across Asia, Africa, and Europe, has led to expanding Chinese footholds worldwide. To date more than 60 countries — accounting for two-thirds of the world’s population — have signed on to BRI projects or indicated interest in doing so.  To continue reading this article, click here.

Some Fiscal Certainty for Coal Miners?

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the recent moves to address fiscal certainty for coal miners in Indonesia.

"Coal producers in Indonesia are demanding so-called ‘nailed down tax treatment’ on the basis that they are entitled to the same level of fiscal certainty that has apparently been granted to Indonesia’s largest metal mineral producer, PT Freeport Indonesia, as part of the recently completed divestiture of a majority shareholding interest to a State-owned enterprise.

The best guide to the level of fiscal certainty coal producers can realistically expect must be last year’s Government Regulation on the tax treatment of metal mineral producers.”

To read this article in full, click here.

Conversion of CCoWs to IUPKs – Unresolved Issues

In another recent article, Bill Sullivan of Christian Teo & Partners, looks at the unresolved issues in the conversion of CCoWs to IUPKs.

"It continues to be unclear when and in what circumstances Indonesia’s major coal producers will be able to convert their CCoWs into IUPKs.

The long and unexplained delay in issuing the necessary enabling regulations may well indicate that the Government and major coal producers have been unable to reach consensus, as yet, on what would be minimally acceptable conversion conditions as far as both parties are concerned.”

To read this article in full, click here.

Indonesia Market Update

In their February 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.