Phil Turtle
National President

President's Column

As we sign off on a most interesting and challenging year in 2020, there is much to look forward to in 2021.

Through the year, AIBC has been keeping busy hosting and partnering in a wide range of virtual and other events to draw as much attention as possible to IA-CEPA and the opportunities it holds for business, and prepare for a time when we are once again able to travel somewhat freely.

We have been pleased to see the level of interest amongst our existing and new Members, and are encouraged by the high levels of participation in events, with many new faces being seen and voices heard.

Despite the challenges of COVID-19 business continues, and we were delighted at the recent announcement by Aspen Medical and Docta that they have entered into a $1.3 Billion healthcare deal in the Province of West Java. This significant investment in Indonesia once again shows that Australian business can find opportunity on our doorstep.

Dr Andrew Rochford (left) of Docta and Aspen Medical CEO Glenn Keys (right)
(photo courtesy AFR - Aishah Kenton)

Aside from the successful entry into force of IA-CEPA in July, we also have seen the signing of RCEP, and also the introduction of Indonesia’s Omnibus Law (see IA-CEPA Corner below for more on this).

AIBC has proudly continued to support its friends at the Australia Indonesia Youth Exchange Program (AIYEP) and the National Australia Indonesia Language Awards (NAILA) (see articles below) as both are important training grounds for our emerging business leaders in both countries, as well as talent pools for businesses seeking to explore each country.

We have also recently launched two new National sectoral Groups covering the important Healthcare and Food and Agriculture sectors, with much activity planned for the coming year (see below).

With a somewhat difficult year almost behind us, on behalf of the AIBC Board, I wish you all a safe and merry festive season, and a wonderful start to 2021.

Selamat Hari Natal dan Tahun Baru.

Phil Turtle
National President

As Australian and Indonesian business continue to explore opportunity under IA-CEPA, Austrade concluded its very successful “IA-CEPA Business Connect” series of events. All up some 65 online events were held, promoting various aspects of IA-CEPA to several thousand participants in both countries and around the globe, and AIBC was proud to partner with Austrade on a number of these events.

We also welcome at this time a new Australian Minister for Trade, Tourism and Investment, Hon Dan Tehan MP. With former Trade Minister Birmingham moving to become Finance Minister, we welcome Minister Tehan to this important role in a time of great instability in global trade, and wish him well.
 

Australia’s new Minister for Trade, Tourism and Investment, Hon Dan Tehan MP

We also extend warm thanks to Minister Birmingham who navigated us through the critically important final stages of IA-CEPA negotiations and finalisation, culminating in entry into force on 5 July and a very well attended virtual IA-CEPA launch with AIBC on 9 July.

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

Further enhancing opportunities for Australian Businesses in Indonesia, will be the new regulations under Indonesia’s recently passed Omnibus Law (also known as the Job Creation Law). For some insights into this new Law, please see this presentation kindly provided by Oentoeng Suria & Partners/Ashurst.

With COVID-19 vaccines beginning to be approved and become available in various countries, we can all hope for an end to this terrible pandemic in 2021.

President Jokowi has promised free vaccination for all in Indonesia and hopes this to begin in January, although acknowledges with Indonesia’s vast population, that this will take some time.

President Jokowi said “I will be given the vaccine first to show that it is all right”.

In Australia, the Christmas travel plans of so many have been heavily impacted with borders between our States and Territories opening and closing in rapid order driven by unfortunately timed outbreaks.

Looking ahead as our economies seek to recover, the Australian Government committed to a $1.5 Billion loan package to assist Indonesia as it rebuilds, with a joint announcement being made by Australia’s Treasurer Hon Josh Frydenberg MP together with H. E. Sri Mulyani Indrawati Indonesian Minister of Finance.

As always, 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.

AIYEP 2020

Over recent weeks, AIBC and our Members and Friends have been supporting the Australia Indonesia Youth Exchange Program (AIYEP) and its 2020 cohort of participants from both Indonesia and Australia.

This year’s program was the first conducted virtually, due to the travel restrictions imposed by COVID-19, and despite some anxiety about this new format would work, the program has been a resounding success.
 

Some of the 2020 AIYEP group with Ben Giles - Queensland Trade and Investment Commissioner - Indonesia

It has been very rewarding to participate in a number of forums with this group, including a range of workshops and masterclasses, as well as mentoring sessions.

Some of the highlights from this Program can be seen on the AIYEP LinkedIn page here.

Thanks to our AIBC Members and Friends who have supported AIYEP through providing virtual internship opportunities and mentoring for participants.

AIBC looks forward to supporting AIYEP in future years.

Introducing Telin to Australia

AIBC recently had the pleasure of speaking with Adriansyah (Adrian) Zaidan, Executive Director of Telekomunikasi Indonesia International Australia Pty Ltd (Telin Australia) and COO of OneContact.

Adrian elaborated on the history of Telin’s business in Australia, and on the opportunities for Australian businesses to take advantage of their extensive range of Customer Care, Sales and Marketing, Back Office Support, and Digital Solutions Services.

Telin Australia’s Adrian Zaidan

As many AIBC Members and Friends would know, Telstra is in an important Joint Venture with Telin’s parent company, Telkom in Indonesia.

To learn more please visit the websites linked above, see a OneContact/Telin presentation here and/or contact Adrian here.

NAILA

As longstanding supporters of the National Australia Indonesia Language Awards (NAILA), AIBC was delighted to participate in the recent virtual Awards Ceremony showcasing some amazing talent and enthusiasm from participants in a range of categories.

AIBC and its members are further assisting some of these participants with their professional development and networking.

AIBC congratulates NAILA and all participants and Award winners, and looks forward to supporting NAILA in future years.

More on NAILA 2020 can be seen on their website and LinkedIn page.

New AIBC Sectoral Groups

AIBC Healthcare and Food & Agriculture Groups Launch

In recognition of the important roles the Healthcare and Food & Agriculture sectors play in the Australia-Indonesia relationship, the AIBC is pleased to announce the establishment of two new National sectoral groups covering these industries.

AIBC thanks members Jeff Parker (AIBC QLD) and Garry Embleton (AIBC VIC – Vice Chairman) for their efforts in establishing these Groups and in taking on inaugural leadership roles as Group Chairs.
 

L-R Jeff Parker and Garry Embleton
 

These Groups are modelled along the lines of the successful AIBC National Mining and Energy Group headed by Geoffrey Gold, which has been established for some years, and has led some very worthwhile initiatives including AIBC’s annual participation in the IMARC Conference and in developing an important MoU with the AusIMM.

Some of the objectives of these groups include activities such as sector specific events, development of reports, member introductions and networking opportunities.

We wish these Groups success as they kick-off in the new year. Anyone interested in learning more can contact Jeff and/or Garry directly and see their profiles here and here.

NSW Update

NSW Chair delivers remarks at the Indonesia Trading House Australia Launch & Business Networking

NSW Chair Nick Alexander and his fellow Committee members, Deputy Chair Pat Hanna, Secretary Francisco Widjojo, Committee Member Di Robinson and Committee Member Christopher Matthews attended the launch of the Indonesia Training House Australia held at the glamourous new function space of the ITPC at 7 Macquarie Place in Circular Quay on the evening of 25 November 2020. The event, organised by ITHA Director of Operations Andrew Wanandy in collaboration with the ITPC, KADIN, and Indonesian Consulate General, was a great success and provided attendees with an informative introduction to the priorities of the newly-founded ITHA, an initiative formed in partnership with KADIN to assist Australian businesses and investors interested in Indonesia with becoming export ready, commercial trading, promotion and facilitation of investment, and business advisory services. The AIBC looks forward to working closely with the ITHA over the course of 2021 and into the future.
 

NSW Committee holds end of year Christmas dinner and networking sponsored by Arkblu Capital

NSW chapter Secretary and principal at Arkblu Capital, Francisco Widjojo, hosted an informal and COVID-safe gathering of AIBC members and non-members at Haymarket HQ. The event was well-attended and provided an opportunity for AIBC members and non-members to network, unwind and plan for the new year over a meal of nasi kuning and gado-gado prepared by Dapur Otentik. NSW Chair Nick Alexander delivered welcoming remarks and Secretary Francisco Widjojo delivered a presentation on Arkblu Capital and its current ventures in Indonesia. Arkblu Capital is a private investment firm focused on the venture capital asset class in Indonesia. Arkblu Capital primarily invests in the best early-stage companies (pre-seed to Series A) that are serving the rapidly growing middle class of Indonesia (total population of 270 million and the fourth most populous country in the world), and has offices in Jakarta and Sydney. The firm is led by a dynamic team with several decades worth of experience building and launching B2C companies and market-leading consumer products in Indonesia.
 

AIBC NSW Committee (including former NSW Chair - Michael Fay)

Nick Alexander
NSW Chair

NT Update

35th Trade Expo Indonesia (TEI) Virtual Exhibition
 

On Tuesday 10/11/2020, the Indonesian Consulate in Darwin invited local businesses to watch the opening ceremony of the 35th Trade Expo Indonesia Virtual Exhibition (TEI-VE) 2020 Live.

It was attended by 20 AIBC NT Chapter members who are entrepreneurs interested in expanding their business relationships with Indonesia. 

TEI VE 2020 was opened by the President of the Republic of Indonesia, Joko Widodo. TEI-VE is an international trade fair focused on B2B designed to drive the growth  export of the Indonesian  product and to expand export markets. The 35th TEI-VE in 2020 carries the theme "Sustainable Trade in The Digital Era" to promote quality products made in Indonesia through a virtual exhibition platform for the global market, develop business networks, investment and present a showcase of premium and best Indonesian products.

Along with the exhibition, TEI-VE also presented a series of parallel activities consisting of Trade, Tourism and Investment Forum, Business Matching, Business Counseling and Regional Discussions. TEI-VE was held from 10th – 16th November 2020 in conjunction with:

• TradeExpoIndonesia2020;
• TEI2020;
• TEI35GoDigital;
• IA-CEPA;
• KJRI Darwin;
• AIBC NT
   

Business Breakfast Meeting with NT Government
 

On Tuesday 24th November 2020, AIBC NT Chapter in collaboration with KJRI Darwin held a Breakfast Networking Meeting. Focusssing on connectivity, bilateral cooperation, vocational education, mining and energy sectors between Indonesia and Australia, the NT Multicultural Program, were all topics discussed at the meeting.

The meeting was also attended by the Minister for Territory Families and Urban Housing; Minister for Disabilities; Minister for Sport; Minister for Multicultural Affairs, with Hon Kate Worden, outlining the Northern Territory Multicultural Program for the next 4 (four) years.

This meeting is a routine event held by the Indonesian Consulate Darwin in conjunction with AIBC NT. Together with the NT business community, the meeting was also attended by representatives of the NT Government.

NT Networking Breakfast with KJRI, Darwin
 

On 1st December, the KJRI Darwin in collaboration with AIBC NT Chapter organised a recent business breakfast networking at Wisma Indonesia to meet with the Director of the IIPC, Bapak Henry Rombe and his team.

Pak Henry seeking an opportunity to enhance economic cooperation between Indonesia and Northern Territory, particularly in the energy sector by taking momentum after the implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which was signed on 5th of July 2020.

The event was held at short notice and the Consulate only extended the invitation to a small group of AIBC NT members to attend.
 

AIBC NT Christmas Networking Dinner
 

Attended by over 60 members and friends of AIBC NT, the Indonesian Consul for Northern Territory thanked the AIBC NT for the effort making and promoting relationships between Indonesia and Australia.

Strengthening the relationship with Northern Territory government and supporting Local business who interested to do business in Indonesia.

The function held at Award winning restaurant Hanuman Darwin.
 

Linda Reeves, NT Chairwoman addressing the audience

Linda Reeves
NT Chairwoman

QLD Update

Export Strategies and Opportunities post COVID-19 for Indonesian Agribusiness and Food Manufacturing Businesses

AIBC (Qld) partnered with the Queensland Chamber of Commerce and Industry (CCIQ) and Trade and Investment Queensland (TIQ) on 24 November 2020 to present business opportunities in the Indonesian Agribusiness and Food Manufacturing industry.

With headline presentations from Trade and Investment Queensland Commissioner, Ben Giles and AIBC-Qld’s own Vice-Chair, David Widjaja, the audience benefited from a range of on-the ground tips and advice and selected case studies.

Notwithstanding the impacts of COVID-19, Indonesia remains a very large market for Australian food products. Importantly a number of food tariff reductions under the Indonesia-Australia Comprehensive Partnership Agreement (IA-CEPA) only come into force from 2023 onwards which means that Queensland and Australian exporters need to plan ahead for market access and develop local importer and distributor networks. Some examples include:

• Indonesia will eliminate its tariff on frozen beef. Tariff on frozen beef cuts with bone in reduced to 2.5 per cent on entry into force of the Agreement and eliminated by 2023;
• Elimination of tariffs on pineapples, avocados and strawberries in 2026;
• 20 per cent tariff on mangoes reduced to 12.5 per cent in 2025; and
• Five per cent tariff on dragon fruit reduced to two per cent in 2026 among others.

Information on tariff reductions can be found here and the webinar recording is available here. Our thanks to CCIQ and TIQ for collaborating on this valuable resource for members.
 

 
AIBC (Qld) Committee meets for last time in 2020
 

AIBC QLD Committee
 

After an epic year for all involved, and the challenges of COVID-safe protocols, Acting Chairs, new Committee members and interrupted activities, the AIBC (Qld) Committee was able to meet one final time in 2020 at local Indonesian restaurant Sendok Garpu, in Indooroopilly in Queensland.

Reflecting on the year that was, Qld Chair, Paul Martins, thanked the committee for their efforts and their ongoing and relentless support of members and each other. A range of new initiatives including the ‘On the Ground’ series and a ‘Mining Special’ webinar were among many of the highlights for Queensland this year, despite the COVID-19 pandemic.

The Qld Committee was also able to enhance its positive relationship with Trade and Investment Queensland (TIQ) and continue its promotional activities with its Jakarta based Commissioner, Ben Giles.

The Qld Committee has a range of actions planned for 2021, including a new advocacy program with the Qld Government; the roll-out of industry coffee catch-ups for members; and bringing back face to face workshops on topics related to the bilateral relationship and leveraging the IA-CEPA among others.

The Qld Committee take the opportunity to thank all members for their continued support in 2020 and we wish all members and friends of the Australia-Indonesia relationship, seasons greetings and a safe and prosperous new year.

 
AIBC (Qld) 2020 End of Year Networking Event
 

Grape Therapy Restaurant
 

AIBC (Qld) was able to once again bring members back to face to face networking at its final event of 2020 on 2 December at local haunt, Grape Therapy.

The event was only the second face to face catch-up of members since the onset of the COVID-19 pandemic, with the first being a small Indonesian Independence Day celebration on 17 August 2020.

Qld Chair Paul Martins said, “member events are such an important way to connect and leverage the membership of AIBC members and allow members to share insights and get connections to help them with their business endeavours.”

AIBC (Qld) was also pleased to announce Telecoms leader, Peter Baines has joined the Committee and will deliver some industry insights in early 2021 to members. Trade and Investment Queensland (TIQ) continued to be a key supporter of AIBC (Qld) and Indonesia-Queensland relations by sending two senior managers to the end of year networking function. The strong interest in the event shows the value they offer to members.

Paul Martins
QLD Chair

SA Update

The University of Adelaide: Employability in Indonesia beyond COVID-19

The SA Branch Chair was delighted to be invited as a speaker by the University of Adelaide on webinar Employability in Indonesia beyond COVID-19. Other speakers were from the Department of Financial Market Development Bank Indonesia and Ministry of Finance, the Republic of Indonesia, Department of Planning and Budgeting Subdivision Fiscal Policy Agency. The webinar focused on sharing perspective from speakers to the current International students at the University on how the current COVID-19 crisis impacted our line of work, how we adapt to it and what are valuable things we have learnt so far.

The University of South Australia: Australia’s Challenges and Opportunities with Korea and major Asian economies in the past COVID-19 period
 

Amalia Sosroiredjo (SA Chair) with University of SA Panellists

The SA Branch Chair was invited as a panellist by the University of South Australia for their Symposium: Australia’s Challenges and Opportunities with Korea and major Asian economies in the past COVID-19 period. The SA Chair spoke at a session panel on Australia's Trade Engagement with South Asia and South-East Asia (India, Indonesia and Vietnam). Amalia spoke about the untapped potential trade between Indonesia and Australia that can be accelerated through the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and how to tap into these potentials, in particular Australia exports to Indonesia.

Amalia also introduced Indonesia Trading House Australia (ITHA), the only partner of the newly established Indonesia Trading House of KADIN (Indonesia Chamber of Commerce and Industry) in collaboration with the Ministry of Trade of the Republic of Indonesia.

End of the year Committee Dinner

Due to the recent cluster of COVID-19, with heavy heart the SA branch decided to cancel its end of the year drinks that usually conducted in December each year. The Committee gathered in a small group for dinner at Indonesian restaurant to support our local eatery business. The SA Branch has been working on new programs for 2021. We are looking forward to connecting and engaging more with our members and broader audience next year. Happy holidays to you all from us.
 

AIBC SA Committee

Amalia Sosrodiredjo
SA Chair

TAS Update

 2020 Round Up

AIBC TAS members completed a final meeting on 7th December followed by networking drinks (following social distancing protocols) at the Hobart Yacht Club. Thanks to the committee for their continuing support and enthusiasm for 2020 plans. Also, our continued gratitude to the University of Tasmania and Tasmanian Government for their support to develop engagement opportunities between Tasmanian and Indonesian business.

The year started with a high-level delegation visit from the Indonesian Ministry of Fisheries to Hobart to study developments on aquaculture technology, with our branch chair accompany the delegation and assisting in organising events. With unprecedented challenges faced due to a COVID world, our TAS branch continued to engage and develop opportunities by holding regular online meetings. Tasmania’s education, maritime and fisheries sectors continued to drive these developments, with  continued progress from Tasmania’s agriculture and renewable energies sectors.
 

Indonesian Ministry of Fisheries Delegation Visit to Hobart 28 February 2020

AIBC TAS Committee and Members Meeting, Hobart 7th December 2020

We extend our best wishes to all members for the festive season and, a safe, healthy and prosperous 2021.

Peter Craven
TAS Chair

VIC Update

Farewell to Victoria and Tasmania's Economic Consul for the Republic of Indonesia

Orchida Danudjaja - Economic Consul

On Thursday, 15th December AIBC Victoria hosted a Zoom meeting attended by over 40 people to farewell Orchida Danudjaja who is the outgoing Consul for Economic Affairs for the Consulate General of the Republic of Indonesia in Melbourne.

Orchida’s role during her posting in Victoria has been invaluable to AIBC Victoria. A former Monash University graduate, Orchida was assigned back to Melbourne in 2018 to be part of the Economy team for the Indonesian Consulate, working alongside AIBC Victoria on various events and initiatives.

The conversation was light hearted and valuable networking was held during the breakout sessions and was moderated by Emmanuel Setyawan from the AIBC Victorian Committee.

AIBC Victoria would like to take the opportunity of thanking Orchida for being a vibrant participant at AIBC's networking events and the community in general.
 

Jared Heath
VIC Chair

AIBC Ambassador Update

AIBC Ambassador Participates in Esports Bandwagon

Recently, the Indonesian Government has recognized esports as a competitive sport through the Ministry of Youth & Sports. AIBC Ambassador, Yudistira Adipratama S.H., LL.M, is the Head of the Law and Legislation Division at the Indonesian Esports Board (Pengurus Besar Esports Indonesia – "PBESI"), at the same time, is entitled as the Head of the Legal Division at Indonesian Video Game Association (Asosiasi Video Game Indonesia – "AVGI"). Yudistira is the critical key person whose legal view is essentially desired to draft and arrange the esports managerial regulation that will nationally prevail in Indonesia. In early October, he was invited by the House of Representatives to share his insight to adjust the National Sports System Law to advance the esports industry's growth.

The recognition of esports as a competitive sport by the state indicates a significant potential in the video game industry. The Indonesian esports ecosystem has spawned many technology innovation entrepreneurs in the market and helps the digital economy's growth during this pandemic. IA-CEPA encourages cooperation between Indonesia and Australia in e-commerce, in this case, esports opens enormous opportunities for products targeting millennial and Gen-Z consumers. In addition to that, Australian investors are welcome to invest in the esports club or get involved in the esports industry, such as gadgets or supporting devices, game developer, gaming infrastructure, sports-consultation services, etc.

To better understand the ecosystem and business opportunities, feel free to reach Yudis through his email: yudistira@kcaselawyer.com.
 

Yudistira Adipratama
AIBC Ambassador - Jakarta

Indoview

IIPC Newsletter

The Indonesia Investment Promotion Centre (IIPC) has published its end of year 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 November newsletter, which can be viewed here.

Coal Downstreaming

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the practice of Coal Downstreaming.

"Coal downstreaming has become an important topic in the ongoing public dialogue about the future of the Indonesian coal mining industry and as low coal prices squeeze the profit margins of Indonesian coal producers.

The term “coal downstreaming”, however, is somewhat ambiguous and misleading as it is open to different interpretations. It is also highly questionable whether or not all the permitted types of coal downstreaming should really attract the benefits and incentives currently being offered by the Government.”

To read this article in full, click here.
 

Indonesia Market Update

In their September 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.

Digital Signatures Gain Traction

In a recent article by Daniar Supriyadi and Cintya Shifwah Saraswati of Bahar, they examine the increasing use of digital signatures in electronic documents.

“More than a decade ago, the digital signature was introduced to establish authenticity of electronic documents (legally known as the electronic certificate). Since then, it has gained much attraction, as evinced in a 350 percent rise on the acquisition of digital signatures into business and financial transactions (Katadata.co.id, June 5).”

The full article may be viewed here.