Phil Turtle
National President

President's Column

Dear Members and Friends,

With the 46th Parliament of Australia just assembled, the Joint Standing Committee on Treaties will soon come together to review the now-signed IA-CEPA and make its report to Parliament.

All being well, this will see the Agreement ready to be ratified from the Australian perspective before the end of the year, with Indonesia also following its own process. We are hopeful that with President Jokowi’s continuing support, together with other key people and groups, this will also go smoothly.

With the current “Trade headwinds” being experienced globally with the ongoing US-China Trade War, agreements such as IA-CEPA and RCEP, that also includes Australia and Indonesia, become even more important to ensure our future prosperity. Indeed, Indonesia and Australia together led the charge at the recent G20 in Osaka to keep broader reform of world trade rules on-track, perhaps contributing to no further tariff impositions being made by the US on Chinese goods.

President Trump and President Joko Widodo together at the G20 Summit in Osaka, Japan, June 2019 (Photo: Jakarta Post)

With all this focus on IA-CEPA this year, AIBC has been active in its advocacy in both countries to add our support for the earliest ratification of the Agreement, and looks forward to a range of collaborative events over coming weeks and months, aimed at spreading the word about the Agreement and opportunities, and encouraging businesses to participate; notably Ambassador Quinlan and Australia’s Chief Negotiator, Elizabeth Ward, will be involved in a range of events in various cities.

Senator the Hon. Simon Birmingham, Minister for Trade, Tourism and Investment with AIBC National President, Phil Turtle (Canberra, June 2019)

It is an important year for AIBC and our Members, and we are heartened by the support we receive. Our role is an important one, that has been described as in the “National Interest” by senior Diplomats, and we take this role very seriously. As our 2019/20 Membership renewals continue to flow in, we encourage current Members to renew with us, and also urge others in our communities to get involved (see here for more on AIBC Membership).

A great opportunity for all to participate will be the IABC Conference in Bali later this year. The Conference organisers have recently opened registrations, for what will be an important gathering between the business communities of both countries (see article below for details).

Phil Turtle
National President

Renewal of AIBC Membership

Current Membership Expired as at 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.

IABC Conference 2019

Earlybird Registration - 10% Discount prior to 31st August

INDONESIA AUSTRALIA BUSINESS CONFERENCE

CONFERENCE 4.0

The conference about our future – are we ‘smart’ enough

The Indonesia Australia Business Council is hosting its biennial Business Conference on 3-5 November this year (Sunday to Tuesday) in beautiful Bali. And this is our 30th year – a special conference in a special year.

The face of business is changing fast. The local branch of our bank used to be a focal point. Now you are lucky to find someone in the branch if you can find the branch. We don’t pretend we are brainier than Luca Pacioli, friend of Leonardo da Vinci, who codified double entry bookkeeping for the world in 1494 (not forgetting that the Koreans had their own similar system at the time). But now we have to adapt to faster-moving change and learn new ‘codes’. That is what being ‘smart’ means. We will look at what this means for some selected business activities.

Program

After a Sunday evening opening, over the next two days the conference will look at political and economic trends, hear from businesses dealing with these trends, and hear from government leaders vitally interested in trade and investment issues. We will consider how the IA-CEPA can help us grow and grow smarter, whatever our business.

The Ministers responsible for trade and investment in both Australia and Indonesia are invited to attend.

BALI, 3 – 5 NOVEMBER 2019

Pullman Bali Legian Beach - Kuta

Enquiries may be made through secretariat@iabc.co.id or by contacting Vic Halim at the IABC Secretariat on 521 1540 or director@iabc.or.id, or Conference Convenor Ambassador Hamzah Thayeb on tmht52@hotmail.com or Conference Chairman Peter Fanning on 081 186 2094.

To Register and take advantage of the 10% early bird discount until 31 August 2019, please click here.

Change of Leadership at AIYA and Survey 2019

The AIBC is pleased to continue to partner with the Australia-Indonesia Youth Association (AIYA) in events and other initiatives throughout the year, and in cities around the country.

Recently Nicholas Mark concluded his successful 4-year term as AIYA President, and the baton has now been passed over to Clarice Campbell. Clarice has been involved in AIYA since 2014, originally in the Victoria Chapter but after moving to Indonesia in early 2017 has taken on roles within the National Executive.

Clarice Campbell - Australia-Indonesia Youth Association, President

Clarice is living and breathing the AIYA vision and mission and will be the organisation’s first President based in Jakarta. AIYA exists as a network that engages young Australians and Indonesians from university students through to young professionals, and Clarice is all set to move AIYA into its next phase.

In her professional life, Clarice works at the Victorian Government Trade and Investment Office as the Director of TAFE Victoria under the guidance of Victoria's Commissioner to Southeast Asia, and IABC colleague, Brett Stevens.

We extend congratulations to Nicholas and Clarice, and look forward to our next collaboration.

AIYA has also recently released its Survey for 2019, which is undertaken every few years to keep a pulse on Australians' and Indonesians' thoughts and attitudes on the bilateral relationship.

Please assist AIYA by completing their survey here.

Trade Expo Indonesia 2019

>

The 34th Trade Expo Indonesia 2019 is coming in just under 100 days time.

“TEI is an international B2B-focused tradeshow that is designed to boost export product growth and export market expansion. The 34th TEI in 2019 brings up the theme ‘Creating Products for Global Opportunities’ to promote quality products made in Indonesia for the global market, develop business networks, investment and present showcases of Indonesian premium and best products. Along with the exhibition, TEI also present a series of parallel activities consisting of Trade, Tourism and Investment Forum, Business Matching, Business Counselling, Regional Discussion, Overseas and Local Trade Mission, Export Start-Up Competition and Talk Show.”

For more information see the TEI website here.

AIBC at IMARC 2019

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

Australia’s largest mining event, IMARC brings 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.

AIBC members enjoy a 15% discount off tickets to the conference. Simply register with the discount code MA1200AIBC.

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 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 IA-CEPA.

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.

ACT Update

Hosted by the BKPM, the Indonesia Investment Promotion Centre (IIPC - Sydney) and PwC, the AIBC in ACT recently participated in a luncheon event that was joined by special guest BKPM Chairman Tom Lembong, Members of the Canberra Business Chamber and the ACT Government, together with other business leaders from Canberra and beyond.

The event was officiated over by Andrew Parker from PwC alongside AIBC National President Phil Turtle, and included informative addresses from Mr Nurul Ichwan, Director of Investment Planning for Services and Zones (BKPM), and Mr Wahid Sutopo, Director of the Indonesia Infrastructure Guarantee Fund (IIGF).

The focus of these presentations was the emerging IA-CEPA, the general investment climate in Indonesia, and particular opportunities in Infrastructure development for international investors, together with the role of the IIGF in assisting with Project Bankability and protecting investments.

Pak Nurul and Pak Wahid responding to questions

Luncheon attendees gather for group photo

BKPM Chairman Tom Lembong with AIBC National President Phil Turtle

The AIBC was particularly pleased to welcome BKPM Chairman Tom Lembong, Andrew Parker, Partner and Asia Practice Leader (PwC), Canberra Business Chamber Chairman Archie Tsirimokos, and Brendan Smyth, Commissioner for International Engagement with the ACT Government.

Thanks to BKPM and PwC for their kind hosting of this event.

Rudy Purba
ACT Chair

NSW Update

IA-CEPA Briefing:  The Indonesia-Australia

Comprehensive Economic Partnership Agreement Update

AIBC NSW, together with DFAT cordially invite you to attend a briefing and update on the recently signed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). Elizabeth Ward, a Chief Negotiator for Australia will explain how IA-CEPA benefits Australian business, why the deal matters for Australia, and provide an update on its entry into force.

Ms Elizabeth Ward, Chief Negotiator - Regional Trade Agreements Division

Elizabeth Ward is a senior Australian diplomat and public servant at the Department of Foreign Affairs and Trade, where she serves as Australia’s Chief Negotiator in the Regional Trade Agreements Division.  In 2017-18 she was Chief Negotiator in the Australia-Hong Kong Free Trade Agreement negotiations. From 2014 to early 2017 she was Chief Negotiator in the Trans-Pacific Partnership Agreement negotiation, and from 2012 to 2014 the Deputy Chief Negotiator. She was a member of Australia’s agriculture negotiating team in the WTO Doha Round and has worked on the WTO Trade Facilitation Agreement. Elizabeth has had postings to the USA, India and Egypt.

Date:       Friday, 19th July 2019
Time:       09:15 am - 10:30 am
Venue:    DFAT Offices,
                Level 9, 13 Castlereagh Street, Sydney

Cost:      Complimentary
RSVP:    Please click here to register for this event and note places are strictly limited.

AIBC NSW Partners in Joint ASEAN Business Chambers Event

L-R Caroline McCarthy DFAT; Gary Dawes Australian Business Chamber and Ranitya Kusumadewi Indonesian Ministry of Trade

AIBC NSW partnered with its counterparts from Thailand, Malaysia and the Philippines on a very well attended panel discussion and networking event hosted by Dentons Lawyers in Sydney on July 17th.

The panel represented key Asean stakeholders including the Indonesian Ministry of Trade and provided background briefings and focused on key issues impacting Asean integration.

Thailand is the current Chair of Asean and Indonesia is a major driver of integration and harmonisation across the Asean Economic Community (AEC). Our sister organisation the Indonesian Australia Business Council ( IABC) is a member of AustCham Asean.

Thanks to Lean So from AMBC for his dedicated corordination of this event and to our Corporate sponsor Academies Australsia represented by Managing Director Christopher Campbell.

AIBC NSW Committee members Francisco Widjojo on left of stand and Michael Fay on right together with Thailand and Malaysia Committee members

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

Michael Fay, 
NSW Chair

SA Update

IA-CEPA Briefing:  The Indonesia-Australia

Comprehensive Economic Partnership Agreement Update

AIBC SA, together with DFAT cordially invite you to attend a briefing and update on the recently signed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). Elizabeth Ward, a Chief Negotiator for Australia will explain how ​IA-CEPA benefits Australian business, why the deal matters for Australia, and provide an update on its entry into force.

Ms Elizabeth Ward, Chief Negotiator - Regional Trade Agreements Division

Elizabeth Ward is a senior Australian diplomat and public servant at the Department of Foreign Affairs and Trade, where she serves as Australia’s Chief Negotiator in the Regional Trade Agreements Division.  In 2017-18 she was Chief Negotiator in the Australia-Hong Kong Free Trade Agreement negotiations. From 2014 to early 2017 she was Chief Negotiator in the Trans-Pacific Partnership Agreement negotiation, and from 2012 to 2014 the Deputy Chief Negotiator. She was a member of Australia’s agriculture negotiating team in the WTO Doha Round and has worked on the WTO Trade Facilitation Agreement. Elizabeth has had postings to the USA, India and Egypt.

Date:       Monday, 22nd July
Time:       09:00 am - 10:15 am
Venue:    Ground Floor Conference Room
                Allianz House, 55 Currie Street, Adelaide

Cost:      Complimentary
RSVP:    Please click here to register for this event and note places are strictly limited.

Jim McMillan,
SA Chair

VIC Update

IA-CEPA Briefing:  The Indonesia-Australia

Comprehensive Economic Partnership Agreement Update

AIBC VIC, together with DFAT cordially invite you to attend a briefing and update on the recently signed Indonesia-Australia  Comprehensive Economic Partnership Agreement (IA-CEPA). Elizabeth Ward, a Chief Negotiator for Australia will explain how​ IA-CEPA benefits Australian business, why the deal matters for Australia, and provide an update on its entry into force.

Ms Elizabeth Ward, Chief Negotiator - Regional Trade Agreements Division

Elizabeth Ward is a senior Australian diplomat and public servant at the Department of Foreign Affairs and Trade, where she serves as Australia’s Chief Negotiator in the Regional Trade Agreements Division.  In 2017-18 she was Chief Negotiator in the Australia-Hong Kong Free Trade Agreement negotiations. From 2014 to early 2017 she was Chief Negotiator in the Trans-Pacific Partnership Agreement negotiation, and from 2012 to 2014 the Deputy Chief Negotiator. She was a member of Australia’s agriculture negotiating team in the WTO Doha Round and has worked on the WTO Trade Facilitation Agreement. Elizabeth has had postings to the USA, India and Egypt.

Date:       Friday, 12th July
Time:       4:00 pm to 5;00 pm
Venue:    Avoca Boardroom, International Chamber House,
                Level 5, 121 Exhibition Street, Melbourne

Cost:      Complimentary
RSVP:    Please click here to register for this event and note places are limited and Security Passes are required.

Jared Heath,
VIC Chair

WA Update

With the TVET sector emerging as an ever increasing priority under IA-CEPA, as Indonesia focusses on developing its Human Capital, the Indonesian Embassy in Canberra, together with the Perth Consulate General, BKPM (IIPC), the Indonesian Ministry of Trade (ITPC) and AIBC held a half-day workshop focussing on TVET opportunities in the Mining, Energy and Tourism sectors. This event was very timely, with both our countries leaders only recently discussing TVET collaborations on the G20 sidelines in Osaka.

Delivering the Welcome Remarks was Consul General Dewi Gustina Tobing, with Ambassador Kristiarto Legowo, who also promoted the upcoming Trade Expo Indonesia (further details below), providing Opening Remarks. This was further followed by a Keynote Address by Hon Peter Tinley AM MLA, WA’s Minister for Asian Engagement.

During the ensuing workshop, a wide array of speakers (as listed below) discussed various aspects of the relationship, and opportunities under IA-CEPA. Presentations from each can be found where linked below.

• Ibu Dewi Gustina Tobing, Consul General – Perth (RoI);
• Ambassador Kristiarto Legowo;
• Prof. Ismunandar, Director General for Learning and Student Affairs (RISTEKDIKTI);
• Pak Husen Maulana, Deputy Chairman for Investment Services, BKPM;
• Ms Michelle Hoad, Managing Director, North Metropolitan TAFE;
• Pak Rudy Salahuddin, Deputy Minister for Creative Economy, Entrepreneurship, Cooperatives and SMEs Competitiveness, Coordinating Ministry of Economic Affairs (RoI);
• Pak Wiratmaja Puja, Head of Agency for Human Resources Development, Ministry of Energy and Mineral Resources (RoI);
• Ms Anne Driscoll, Director General, Department of Training and Workforce Development WA;
• Mr Nigel Haywood, Manager, Resource Industry Training Council (WA).

Ambassador Legowo delivers Opening Remarks

Minister Tinley delivers Keynote Address

Prof. Ismunandar

Pak Rudy Salahuddin

Pak Wiratmaja Puja

The AIBC thanks Ambassador Legowo, the Indonesian Embassy in Canberra, The Perth Consulate General, BKPM (IIPC) and ITPC for their kind hosting of this event.

Julia Scott
WA Chair

Indoview

THE 37th INDONESIA UPDATE

From stagnation to regression? Indonesian democracy after twenty years

An updated program is available and the registration is now open.

From stagnation to regression? Indonesian democracy after twenty years is the theme for the 37th annual Indonesia Update Conference to be held at The Australian National University on Friday and Saturday, 6-7 September 2019.

Indonesia is a rare case of democratic transition and persistence in Southeast Asia. But like many other countries around the world, Indonesia’s democracy increasingly shows signs of fragility and even regression. In recent years there has been a rise in authoritarian populism, arbitrary state crackdowns on freedom of speech and organisation, and a deterioration in the protection of minority rights. There are more deep-seated problems too: corruption, clientelism, unequal access to legal protection and redress, under-representation of lower-class and minority voices, and growing support for religious majoritarianism amongst the political class. Many symptoms of democratic fragility were first diagnosed during the second term of President Yudhoyono (2009-2014); but to the surprise of many observers, the most dramatic decline in democratic quality has occurred on President Jokowi’s watch (2014-).

To be sure, Indonesia has a well-earned reputation as the region’s most vibrant democracy. There is much to celebrate about what Indonesia has achieved over the past two decades since Suharto’s authoritarian regime was dismantled. But the warning signs require urgent analytical attention. Cases like the Philippines and Turkey provide powerful reminders that once-stable democracies can deteriorate quickly in the hands of democratically-elected leaders.

This conference examines the quality of Indonesian democracy. The contributors will identify, assess and debate the signs of democratic backsliding across a range of political and institutional contexts. They will do so with a view not just to assessing Indonesia’s democratic evolution over time, but also to situating Indonesia in the context of a global democratic recession.

Conference convenors: Thomas Power (ANU) and Eve Warburton (ANU & National University of Singapore).

The conference is free of charge.

For more information, including registration and additional information, please click here.

An Indonesian style lunch will be provided on Saturday 7 September ($12 per head, students $10 per head) that you must pay online.

The conference dinner will be held at 6.30pm at the Delhi-6 Indian Restaurant, 14 Childers Street, Canberra. Please note that due to limited seating we cannot guarantee you a seat for this dinner if payment is not made at the time of registration. Payment is $35 per head, student is $25 per head.

CCoW Holders vs SOEs - Battle of the Giants

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the recent moves affecting private coal mining operators in Indonesia.

"Indonesia’s largest private sector coal producers are strenuously resisting moves by the Ministry of State-Owned Enterprises to limit them to a maximum operating area of 15,000 hectares when they convert their Coal Contracts of Work into Special Mining Business Licenses for Production Operation.

The Ministry of State-Owned Enterprises wants to see the balance of the Contract Areas, currently operated by the largest private sector coal producers, given to State-Owned Enterprises.”

To read this article in full, click here.

Indonesia Market Update

In their June 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.