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  Issue Number 189 - June 2020
 
In this issue
 
President's Column
ACT Update
NT Update
QLD Update
SA Update
VIC Update
WA Update
Indoview
 
Events
 

Due to the COVID-19 Crisis, the AIBC Board has elected to suspend all events until further notice.  Click here for further information.

 

 

Phil Turtle
National President

President's Column


Dear Members and Friends,

With this issue of AIBCnews we welcome the entry into force of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on Sunday 5 July. Finally, after more than a decade of toil by many, this historic bilateral Agreement between our countries is a reality.

Once again AIBC is proud of the instrumental role we have played over this time, both individually and as a member of the Indonesia-Australia Business Partnership Group (IA-BPG). There are too many to single out for thanks here, but thanks do go to those that have played a key role over the years in getting this done. Our work is by no means over, and much will be required over the months and years ahead, to ensure this Agreement delivers on its promise to the businesses and economies of both countries.

 



Prime Minister Scott Morrison with President Joko Widodo (Canberra - February 2020)


Whilst COVID-19 still has terrible impacts, there is much that can be done to tap into the benefits of IA-CEPA, and many are already making advances. With so much focus having been brought on digital delivery, this will surely be a factor for all businesses as they shape their future plans. Many are also looking into the effects of COVID-19, including McKinsey in their recent study into “Discretionary spending in Indonesia amid and after the COVID-19 pandemic”, just as Indonesia is rated as an upper middle-income country by the World Bank.

AIBC was delighted last week to welcome Australia’s Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham, to launch IA-CEPA with us via the now very familiar Webinar format. With almost 1,700 registrations, this event attracted wide interest in both countries and beyond, which is a very encouraging sign in these early days of the new Agreement. Alongside this, our Government and many Industry Groups have been quoted recently in the media, extoling the virtues of IA-CEPA, and the Indonesian Government too has been encouraging Indonesian businesses to engage.

Of course, it’s not just Australian businesses that have their eyes on opportunities in and with Indonesia, but many international firms are increasingly focusing on Indonesia, with some planning to establish production facilities as other host-countries are embroiled in trade skirmishes. Indonesia hopes to welcome new factories of seven companies, including LG from South Korea and Panasonic from Japan, with these estimated to bring around US$850 million of investment to Indonesia, with employment for 30,000 workers. Encouraged by IA-CEPA, Australian businesses more broadly should take a fresh look at Indonesia, and not be left behind.

With IA-CEPA now with us, we thank you for your support along the way, and look forward to continuing to work hard to deliver important outcomes for our Members and the broader communities of both our countries.

 

Phil Turtle
National President

The Indonesia-Australia Comprehensive Economic Partnership Agreement entered into force on Sunday 5 July, with this being marked by Media Releases from Trade Minister Birmingham and AIBC.

To launch IA-CEPA, AIBC hosted Minister Birmingham in a webinar event with our partners Austrade, which attracted just on 1,700 registrations from around Australia, Indonesia and other nations including Singapore, Taiwan, Vietnam and Korea. This response exceeded expectations, and set a new “record” for such events, clearly demonstrating the significant interest in this new Agreement.
 



Trade Minister Simon Birmingham speaks during the IA-CEPA launch Webinar.


AIBC’s National President Phil Turtle hosted this event, along with AIBC’s ACT Chair Prerana Mehta, with the Minister providing opening comments on what the Agreement represents, what the Government role is in implementation, and why business should engage.

The event also featured Mark Vassella (CEO, BlueScope), Alison Watkins, (Group MD, Coca-Cola Amatil), Andrew Macintyre (Senior Pro Vice-Chancellor, Monash University), and Andrew Muller (CEO & Founder, Ionize) sharing their history in, and enthusiasm for, doing business in Indonesia as well as their own reflections on IA-CEPA.

 

Trade Minister Simon Birmingham cuts our IA-CEPA cake with AIBC SA Chapter to welcome the new Agreement.


AIBC thanks Minister Birmingham, our VIP panel, and Austrade for their support of this event.

A recording of the event can be viewed here.

DFAT have also provided an update on resources available to support IA-CEPA, and that can be viewed here.



Only last month we were reflecting that both our countries are progressing towards a “new normal”, with a freeing-up of activity. With a “second wave” now affecting Melbourne, Victoria, and lockdowns again in place, we can see how fragile a balance we are still faced with.

As all would be aware, a broad range of international efforts are underway to find and test vaccines and other treatments for COVID-19.

In both our countries, a stellar team led by internationally recognised respiratory physician and scientist, Professor Bruce Robinson, is driving a novel Program known as EDICT to help understand and deal with the scourge of COVID-19. Professor Robinson has long and deep connection with Indonesia, built mainly from his efforts following various natural disasters.

You can read about this initiative here, and Professor Robinson and his team would be delighted to hear from you here if you would like to know more and/or support this very worthy Program.

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.

Australian businesses are also assisted by Export Finance Australia, Austrade (Export Market Development Grants), and the International Freight Assistance Mechanism.

For Indonesia, there is also a broad and expanding array of initiatives, however businesses operating in Indonesia are best served by information obtained from their established advisers.

Our counterparts at the IABC in Jakarta have been kindly circulating an updated informal timeline/overview, with the latest here.
 

 

ACT Update

 


Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA): Opportunities for Australian Exporters


Wondering what the benefits are for your business under the new Free Trade Agreement between Australia and Indonesia? IA-CEPA offers an exciting opportunity for many Australian businesses already exporting or just setting out on their export journey.

Following AIBC's IA-CEPA launch event, join Gary Quinlan AO, Australian Ambassador to Indonesia and Austrade’s Senior Trade Commissioner to Indonesia, as they talk about the benefits this new agreement offers to Australian goods and services.

Hear also from MTPConnect, Australia’s Medtech and Pharma Growth Centre and AustCyber, the Australian Cyber Security Growth Network about digital health and other digital trade opportunities in Indonesia.


Date:    22/07/2020

Time:   11:00 am - 12:00 pm (AEST/GMT + 10:00 hrs) (Duration 60 Minutes)

RSVP:  Please click here to register for this Webcast.

 

Prerana Mehta
ACT Chair

NT Update

Meet & Greet Breakfast with new Consul to NT


AIBC NT are delighted to invite you to attend a Business Breakfast welcoming the new Indonesian Consul to the Northern Territory - Pak Gulfan Alfero.

At the upcoming breakfast event, Pak Gulfan will provide an insight into his previous postings as well as share his thoughts and aspirations during his term in the NT.

 


 

To register for this event, please click here. For further information, please contact Linda Reeves.  We look forward to welcoming our Members and Friends to this event.
 

Linda Reeves,
NT Chairwoman

QLD Update

On the 30th of June, AIBC QLD hosted our first webinar, titled 'IA-CEPA: Unlocking its potential for Queensland businesses in the Agriculture and Education Sectors'. The webinar was jointly hosted with the Indonesia Trade Promotion Centre (Sydney), the Indonesian Consulate-General in Sydney and the Indonesia Investment Coordinating Board (Sydney).

We heard from a range of expert presenters from both Indonesia and Australia, the private sector and government. Our speakers were:

  • Ben Giles, Queensland Trade And Investment Commissioner - Indonesia, TIQ, and Heru Subolo, Consul General of the Republic of Indonesia to NSW, Qld and SA, gave an enlightening introduction to the event;
  • Yongky Susilo, IA-CEPA Taskforce, Indonesia Chamber of Commerce and Industry, spoke on KADIN's proposed establishment of an Indonesian Trading House in Sydney. The Trading House’s role will be focused on promotional and commercial transactions, in support of Indonesia-Australia trade;
  • Diana Gueorguieva, Manager International Trade, CCIQ, addressed the benefits of the IA-CEPA for Queensland exporters. She also outlined the process Australian exporters need to follow to benefit from the free trade elements of IA-CEPA;
  • Alastair Dawson, Vice President Global Development at CQUniversity, stressed the importance of building a respectful, mutually-beneficial relationships during their establishment of CQUniversity's programs in Indonesia. Richard also spoke on developing a campus in Jakarta in collaboration with Bakrie University, which is the first by a foreign university.

 

(L-R: Top Row: Pak Heru Subolo, Indonesian Consul-General, Sydney; Ibu Ayu Siti Maryam - ITPC, Sydney; Ms Diana Gueorguieva - CCIQ;
Second row: Mr Alistair Dawson (CQUniversity); Colin Brown (moderator);
Pak Yongky Susilo - KADIN

Bottom row: Pak Adhi Lukman (Indonesian Food and Beverage Association);
Mr Ben Giles - TIQ, Jakarta; Pak Henry Rombe - IIPC, Sydney)

The webinar concluded with a lively Q&A session which involved the main speakers plus three additional people: Ibu Ayu Siti Maryam (Director of Indonesia Trade Promotion Centre Sydney), Pak Henry Rombe (Director of Indonesia Trade Promotion Centre Sydney) and Pak Adhi Lukman (Chair, Indonesian Food and Beverage Association).

The webinar had over 280 people register for the event and is the first in a series of webinars focused on IA-CEPA and its impact on specific industries. Our next webinar is on the METS industry with more details to follow.

A recording of the webinar can be accessed here.

 

Colin Brown,
QLD Chair (A/g)

SA Update


The AIBC SA team and special guests had the privilege to celebrate the IA-CEPA entry into force with Senator the Hon. Simon Birmingham, Minister for Trade, Tourism and Investment on Thursday, 9th of July 2020.

 


(L to R: Michael Pattie – AIBC SA Committee; Romi Branajaya – Managing Director of Monstera International Pty Ltd; Senator the Hon. Simon Birmingham – Minister for Trade, Tourism and Investment; Amalia Sosrodiredjo – AIBC SA Chair; Andrew Bain – AIBC SA Secretary; Anne Moroney – CEO of Regional Development Australia for Barossa and Adelaide Hills; David West – AIBC SA Committee; Blaine Gordon – AIBC SA Committee; Efvlyn Dermawan – Owner of Dreamfuncake).


We organised a very special “Lapis Surabaya” cake to commemorate the historic Agreement. Efvlyn Dermawan from Dreamfuncake, Indonesian diaspora living in Adelaide, was the chef. Efvlyn is well-known for her specialty in making beautiful and professionally decorated cakes for special occasions. We all enjoyed the delicious cake and our time with the Minister, his staff and also our special guests.

AIBC SA would like to engage and connect more with businesses in South Australia and working together to promote trade and investment between our two countries.
 

Amalia Sosrodiredjo
SA Chair

VIC Update

On Wednesday, 1 July 2020, the Indonesian Diaspora Network Victoria (IDN-VIC) in partnership with AIBC Victoria Chapter held a webinar titled “IA-CEPA Peluang dan Tantangan” (translated, IA-CEPA Opportunities and Challenges).

The webinar was held in Bahasa Indonesia and designed to inform the Indonesian Diaspora Network throughout Australia about IA-CEPA which recently came into force. It featured a list of speakers from both Indonesia and Australia such as:

  • Agung Wicaksono Sochirin, Trade Attaché of the Republic of Indonesia for Australia;
  • Huda Albanna, Victoria Government Trade Investment office, Jakarta;
  • Rosan Roeslani, Chairman of KADIN;
  • Felia Salim, Board of Directors, Exim Bank;
  • Hermawan Kartajaya, Founder & Chairman, Markplus Inc.

 


 

The event was moderated by Diana Pratiwi of IDN-VIC, hosted by Emmanuel Setyawan of AIBC Victoria and opening remarks were delivered by H.E. Kristiarto Legowo, the Ambassador of the Republic of Indonesia for Australia. It was attended by over 100 participants from both Indonesia and Australia.

The webinar was kicked off with opening remarks from the Indonesian Ambassador to Australia H.E. Kristiarto Legowo which then continued with a presentation by Indonesian Trade Attaché, Agung Wicaksono. Agung highlighted the Indonesian state of the economy as well as the opportunity for a trade relationship with Australia. He also briefly covered what’s included in the IA-CEPA agreement.

The presentation was then continued by Huda Albanna, Investment Director Victoria Government Trade and Investment office in Jakarta. Huda explained the Victoria-Indonesia relationship and opportunity for further trade and investment from IA-CEPA.

Hermawan Kartajaya, founder and chairman of Markplus Inc described in his presentation the importance of branding for Indonesian companies to make the most of IA-CEPA. He encourages Indonesian companies to learn about the Australian market as a preliminary step.

Felia Salim, Exim Bank Board of Directors then presented an analysis of the IA-CEPA challenges and opportunities from a financial investment perspective.

The final presentation was from Rosan Roeslani who is the current Chairman of KADIN and a long time friend of the Australia Indonesia Business Council. KADIN has played a significant role in helping facilitate the discussion around IA-CEPA. Pak Rosan described a brief history of IA-CEPA and the new trading opportunities between Indonesia and Australia that were not possible prior to IA-CEPA.

The webinar was concluded by a Q&A session, moderated by Diana Pratiwi of IDN-VIC before final remarks from all panellists.

 

Jared Heath
VIC Chair

WA Update

IA-CEPA and Western Australia: Seizing the Potential - Webinar

AIBC in WA was proud to be a supporting partner with the WA Consulate General and the WA Government, in hosting a webinar titled “IA-CEPA and Western Australia: Seizing the Potential”.

This webinar attracted over 200 Business, Academic and Government representatives across WA, in other Australian cities and towns, and in various parts of Indonesia (notably in Surabaya, capital of WA’s sister province East Java).
 

Webinar panellists L-R Richard Sellers, Richard Baker, Jennifer Mathews, Dewi Gustina Tobing, Phil Turtle


The event was opened by Richard Sellers, Director General of the WA Department of Jobs, Tourism, Science and Innovation (JTSI), with keynote addresses by Hon Peter Tinley AM MLA, WA Minister for Asian Engagement, Ibu Dewi Gustina Tobing, Consul General of the Republic of Indonesia in Perth, and Ibu Farah Ratnadewi Indriani, Secretary General, Indonesia Investment Coordinating Board (BKPM).


This was followed by a panel session and Q&A moderated by AIBC National President Phil Turtle, and featuring Jennifer Mathews, Commissioner - Government of Western Australia, Indonesia Office, George Iwan Marantika, Chairman - Australia Committee, Indonesian Chamber of Commerce and Industry (KADIN) and Richard Baker, Non-Executive Director, Red Piranha (and AIBC WA Chair).

 

AIBC’s Richard Baker and Phil Turtle flank Director General (JTSI) Richard Sellers
 

Thanks to the WA Consulate General and to the WA Department of Jobs, Tourism, Science and Innovation (JTSI) for their support in hosting this event.


Richard Baker
WA Chair

Asia Taskforce - Interim Report


The Business Council of Australia and Asia Society Australia’s Asia Taskforce have released their interim report, A Second Chance


“Australian business understands the opportunities in Asia but has made relatively limited progress on building wider trade and investment and in some markets is losing ground.

The taskforce fast tracked the release of an interim report to give Australian business tools to help recovery.

The report identifies eight fundamental characteristics of successful businesses in Asia and 25 recommendations for business and government to support deeper engagement in the region.”

For more on this, see the full report here.

Conference - Economic dimensions of COVID-19 in Indonesia: responding to the crisis

Since December 2019 the coronavirus has swept through all regions of the world. COVID-19 has wreaked havoc everywhere and shows no signs of entirely abating. This conference focuses on the economic dimensions of COVID-19 in Indonesia. It considers both macro- and micro-economic effects and short- and long-term impacts. It constitutes the first comprehensive analysis of Indonesia’s response to the crisis from an economic perspective.


This online conference is held over four days online from 7-10 September 2020.

Further details and registration can be found here.


 

The Lowy Institute recently released its sixteenth annual Poll, “which tests Australian attitudes towards foreign policy and the world around us. The 2020 Lowy Institute Poll, produced by Research Fellow Natasha Kassam, covers a variety of international issues, including trust in global powers; confidence in world leaders, the economic outlook and free trade; and attitudes towards climate change and global warming.

This year’s Poll finds Australians’ trust in China has fallen even further, and most Australians express little confidence in China’s President Xi Jinping. It also finds that concern about climate change after the summer of bushfires has been overtaken by anxiety about COVID-19 and its economic fallout.”

Indonesia remains as a key theme of this annual poll, with some interesting trends in the respective perceptions of Australians and Indonesians about each other.

The full report can be found here.


 

Export Market Development Grants 2020-21


The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports a wide range of industries.


On 1 April 2020, the Federal Government announced an increase in funding for the Export Market Development Grants (EMDG) scheme. Funding for the scheme will increase by $49.8 million in the 2019-20 financial year, allowing exporters and tourism businesses to get additional reimbursements for costs incurred in marketing their products and services around the world.

This supplements the additional $60 million already committed by the Government, and brings EMDG funding to its highest level in more than 20 years at $207.7 million for the 2019-20 financial year.

In addition to increased EMDG program funding, the Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham has waived the EMDG export performance requirements for 2020–21. This will ensure businesses will not have their EMDG reimbursement reduced should their export income fall due to COVID-19.

To further assist exporters in 2020–21, the Minister has determined the Initial Payment Ceiling Amount (IPCA) to be $100,000. This is the highest IPCA since the scheme’s budget was capped in 1997–98, and a significant increase from the $40,000 IPCA set for the past five years.

Further information can be viewed here.

Indoview

IIPC Newsletter


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

Read the newsletter here.

BKPM in Jakarta also published their latest June newsletter, which can be viewed here.

 

Major Changes to Indonesian Mining Law

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at numerous major changes to the 2009 Mining Law.

"Moving with uncharacteristic speed, the Indonesian Parliament approved numerous major changes to the 2009 Mining Law in late May.
The changes to the 2009 Mining Law are largely positive and represent a belated step in the right direction for the deeply troubled Indonesian mining industry. It is unlikely, however, that these changes will, by themselves, be sufficient to attract significant new investment to the local mining industry.”

To read this article in full, click here.


Indonesia Market Update

In their June 2020 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.

 
 
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