Phil Turtle
National President

President's Column

Dear Members and Friends,

The recent AIBC Conference 2018 was an outstanding success, with over 300 delegates from both our countries descending upon the Gold Coast. Those attending included many dignitaries and VVIP guests, including Minister Hon Steven Ciobo MP, Minister Bambang Brojonegoro, Tom Lembong, Ambassador Kristiarto Legowo, Hon Dr Andrew Leigh MP, Mayor Tom Tate, and former Trade Minister Hon Andrew Robb AO.

Also made welcome was a selected group of Australia Awards Scholars from various parts of Indonesia, who made the most of the opportunities to network and learn from the large number of greatly experienced people in the room. Amongst other highlights for them, under the guidance of Martin Newbery (former WA Trade Commissioner in Indonesia), were private meetings with Tom Lembong, telkomtelstra CEO Erik Meijer, and former IABC President Noke Kiroyan. Thanks to all these people for generously sharing their time and advice.

Hon Steven Ciobo MP, Minister for Defence Industry & former Minister for Trade, Tourism and Investment (Photo: Nina Williams)

The Conference theme of “Partnering for Prosperity in a World of Change” resonated strongly with speakers and delegates alike, and the promise of IA-CEPA in the near future was well received and anticipated by all. A number of speakers from both countries, drew particular attention to how their own sectors would be advantaged under IA-CEPA.

AIBC would again thank all our Sponsors, Speakers, Delegates and Volunteers (from the Australia Indonesia Youth Association - AIYA) for their contribution to the success of the Conference. Conference materials are all available via the AIBC website here, including “on-demand” video of all Conference Sessions, together with a large number of photos capturing many facets of the Conference, and feedback we have received. AIBC is very proud of what we delivered, so please take a look. Both the Australia-Indonesia Centre (AIC) and AIYA contributed their own perspectives on aspects of the Conference, and these can be seen here and here.

Whilst the current diplomatic situation between Australia and Indonesia is seemingly impacting when IA-CEPA may be signed, there remains hope that this could be done before the year is out. To emphasise the importance of this Agreement, AIBC wrote recently to the Australian Prime Minister on behalf of our Members, and this correspondence can be viewed here.

As we now get into our Summer, best wishes to all for the approaching Festive Season. We look forward to a big year ahead, with the IABC Conference towards the end of 2019 in Bali.

In closing I would like to give my personal thanks once again to my friend and colleague Leith Doody, former Minister (Commercial) & Regional Trade & Investment Commissioner – ASEAN (based in Jakarta), for his support and tireless efforts in preparations for our Conference, and as Conference Master of Ceremonies.

Phil Turtle
National President

IMARC 2018

In November the Australia Indonesia Business Council’s National Mining & Energy Group successfully lifted AIBC’s profile at Melbourne’s annual International Mining & Resources Conference (IMARC) from merely a supporting chamber, to a national exhibitor and session chair. With sponsorships from EMR Capital, Nusantara Capital and Gilbert + Tobin Lawyers, our fully fitted advocacy booth provided IMARC’s more than 6,000 delegates with opportune information on the wide range of successful Australian investments in Indonesian resources projects, Indonesia’s substantial role as one of the top two markets for Australian METS (mining equipment, technology and services) and, alongside the promise of the Indonesia Australia Comprehensive Economic Partnership Agreement, the current increase in Indonesia partnerships in Australian mining operations.

AIBC actively aligned its presentations with Indonesia’s Department of Energy & Mineral Resources (ESDM) in Jakarta and with the support of Indonesia’s Embassy to Australia in Canberra and its Consulate General to Victoria and Tasmania in Melbourne. Two Senior ESDM Ministerial Advisors -  Satry Nugraha and Yudo D Priaadi – attended the full conference and participated alongside AIBC representatives in official  roles: Pak Satry with Michael Spreadborough (CEO of Nusantara Resources) as speakers on the Asian Mining panel, and Pak Yudo with Geoffrey Gold (Convenor, NM&EG) as co-chairs of the Indonesian Investment Roundtable.  They also regularly visited the AIBC booth for discussions with our other participants, particularly Julie Scott (Gilbert + Tobin, and Chair AIBC WA), Adrian Pratt (Nusantara), Tony Manini (EMR Capital), Pat Hanna (Cokal), Emannuel Setyawan (Accolade Coaching), KonJen Economic Consuls Pak Zaenal Arifin and Ibu Orchida Danujaya, and AIBC intern, Jack Allen. Alongside AIBC members we were pleased to catch up with senior industry  colleagues, including Victoria’s Minister for Resources, Tim Pallas, and Trade Victoria’s IMARC facilitators Sean Rooney and Jason Fuller, WA’s Minister for Mines & Petroleum and Asian Affairs, Bill Johnston MLA, Merdeka Copper & Gold’s Colin Moorehead, and the Melbourne Mining Club’s Richard Morrow and Gavan Collery.

We were also honoured by the visit of Consul General Ibu Spica Alphanya Tutuhatunewa who officially launched the extensive research document “Opportunities for Investment in Mining, Energy and Infrastructure in Indonesia” which had been prepared for our distribution at IMARC by Julia Scott and her Gilbert + Tobin
team - click here to download the entire article.  Interviews with a number of our participants were recorded by Emannuel Setyawan and can be viewed at AIBC’s Facebook Page.

Geoffrey Gold,
Convenor,
National Mining & Energy Group

NSW Update

The Mandalika - Indonesia's next big travel destination -  sponsors AIBC NSW End of Year Party, 12th December

The Mandalika, Indonesia’s next world-class tourism destination, will sponsor AIBC NSW end of year party next week.  Located in Southern Lombok this large-scale integrated  complex is being developed by the renowned Indonesian Tourism Development Corporation (ITDC).

Famous for beautiful beaches and superb surf locations the Mandalika will include a world class golf course, a street race circuit and will be home to luxury and premium hotels including The Pullman Hotel, Club Med, Paramount Studio Resorts and more. The Novotel Lombok Resort is the destination’s original star-rated hotel.

The Mandalika comprises 1.175 ha and is a designated Special Economic Zone presenting opportunities for amenity investors. It will comprise over 10,000 rooms 1500 residential units, a retail complex and world class convention facilities to accommodate over 12,000 people. To find out more click here or contact Miriam Tulevski.

Date:           Wednesday, 12th December
Time:           6:00 pm - 8:00 pm
Venue:        Level 48, MLC Centre, 19 Martin Place, Sydney

Cost:           $20.00 - AIBC Members
                    $30.00 - Non Members
                    $10.00 - AIYA Members (please contact AIBC for the Discount Code)
RSVP:         Please click here to register for this event.

One lucky guest will win a return flight to Lombok, 4 night's accommodation at Novotel Resort and Villas including breakfast for 2 and an "Only-in-Lombok" experience from event sponsor, the Mandalika.

AIBC NSW would like to thank the Mandalika by ITDC and Wonderful Indonesia and for their generous sponsorship of this event:

November Networking Event at KPMG Offices

AIBC NSW with support from National Corporate member KPMG , the Australia Awards and Flinders University hosted a members and friends networking function at KPMG Barangaroo Sydney on the evening of November 16th.

Indonesian digital start up entrepreneurs had an opportunity to network, pitch their businesses and meet AIBC and AIYA members.
Congratulations to Febe Haryanto the newly elected NSW President of AIYA.

The Indonesian Consulate also attended together with representatives from the newly opened promotion centre “House of Indonesia”.

Special thanks to Laki Kondylas from the Flinders University New Venture Institute for coordination and Nick from KPMG for hosting at such an impressive venue and the DFAT Australia Awards team for the  initiative.

Michael Fay,
NSW Chair

WA Update

Visit by the Mayor of Denpasar

(City of Perth Chair Commissioner Eric Lumsden with Mayor of Denpasar Mr Ida Bagus Rai Dharmawijyaya Mantra SE M.Si with delegates and guests)

On 26 November 2018, Mr Ida Bagus Rai Dharmawijyaya Mantra SE M.Si, Mayor of Denpasar, Bali Province and his delegation travelled to Perth to sign a joint cooperation agreement between the City of Perth and City of Denpasar. The agreement commits and formalises an already strong working relationship between the two cities and will hopefully lead to some great outcomes particularly in relation to areas of sustainability and business opportunities.

AIBC National President Phil Turtle and WA committee member Lara Sohn were fortunate enough to attend this very exciting and monumental signing of the agreement.

AIBC and JTSI Business Council Roundtable 

AIBC WA was proud to be invited to participate in the largest gathering of all Asian business councils and chambers in Western Australia for a collaborative workshop on Asian engagement and WA State Government sector priorities. The workshop, which was held on Friday, 12 October 2018 in Perth, was an initiative of the Asian Business Alliance, Hon. Bill Johnston MLA (Minister for Asian Engagement) and the Department of Jobs, Tourism, Science and Innovation (JTSI).

Pictured above: Hon. Bill Johnston MLA providing the welcoming address.

As part of the workshop, each of the business councils and chambers was asked to advise JTSI attendees of each of their respective priorities and strengths, and how these aligned with JTSI's priority sectors (and if not, what needed to change). A number of asks of Government were also committed to, of which the resounding consensus across the councils and chambers was on increased and effective collaboration and communication - with some improvements in that regard anticipated to follow shortly!

Pictured above: Mackenzie Godson (AIBC WA Committee Member) representing AIBC WA.

JTSI also used the opportunity to launch it's new Priority Sector Funding Program, which is a grant program (of up to $30,000 for outbound investment and $20,000 for inbound investment) established by the WA Government. The program aims to assist WA companies to engage with and develop international business capability within the Asian market in industry sectors considered a priority by the State. Applications can only be made through the councils and chambers, so if any members are interested in obtaining more information please feel free to get in touch with the AIBC WA Committee.

Pictured above: Hon. Bill Johnston MLA and Rebecca Brown (Director General of JTSI) and  representatives of the Asian business councils and chambers in attendance.

IndoView

Disruptive Asia 2018

"With its diverse cultures, economic development levels and political practices, South-East Asia has an infinite capacity for surprise, not least for neighbours like Australia prone to missing the wood for the trees in such a polyglot region."

by Greg Earl, Editor Disruptive Asia and Asia Briefing, Asia Society Australia

South-East Asia is a region of critical importance to Australia.  Trade with ASEAN is 15% of Australia’s total trade, making it our top three trading partner. Over 100,000 students from ASEAN study in Australia and over one million tourists come to our shores each year.  Over 896,000 Australians identified their heritage from ASEAN nations in the 2016 Census. Our diasporic and community links with the region are rich and complex.

It is also the region where the strategic fault lines between the United States (a security balancer and guarantor of the region) and China (South-East Asia’s indispensable economic partner and a rising strategic power) have been drawn most starkly, and where Australia’s diplomacy and strategic maneuvering will be most complex and demanding in the decades ahead.  To continue reading this article, please click here.

Moving Beyond Trade: The Indonesian-Australian Relationship

Background:

With two-way trade stagnating and the long-waited free trade deal being plagued with delays, there is a lot of ground to cover in the Australia-Indonesia economic relationship. Speaking at a recent event in Perth, titled the WA-ASEAN Trade and Investment Dialogue: The Power of Proximity, former Finance Minister Dr Muhamad Chatib Basri told attendees that the relationship needs to move beyond trade.

Comment:

As noted in a previous Strategic Analysis Paper, the current trade relationship between Australia and Indonesia is stagnating. There seems little prospect that it will improve in the near future, especially given that the Indonesia-Australia Comprehensive Economic Partnership Agreement has again been delayed. Instead, Indonesia is likely to look towards other, more substantial, markets to boost exports. There is, however, some opportunity to improve the Indonesian-Australian economic relationship in areas other than trade, specifically in regard to fulfilling Indonesian ambitions to reach self-sustainability in food.  To continue read the full article click here.

Media Release:
New appointments to boost Indonesia–Australia red meat and cattle partnership​ - 21 November 2018

David Foote, Liz Ritchie and Troy Setter appointed to the Indonesia Australia Partnership on Food Security in the Red Meat & Cattle Sector
The appointees bring diverse industry expertise to the partnership
Partnership focused on productivity, sustainability and competitiveness of the sectors​
Three new non-government members have been appointed to the Indonesia Australia Partnership on Food Security in the Red Meat & Cattle Sector.

Minister for Agriculture David Littleproud said the experience and knowledge of the new members would boost the development of the red meat and cattle sectors in both nations.

"I look forward to seeing David, Liz and Troy make their mark on this important partnership," Minister Littleproud said.

"Their experience in cattle breeding and management, as well as exports, processing, transport and logistics make them great choices.

"Over the past five years, the partnership has spent around $17.75 million on processing, breeding and logistics projects.

"That spending is improving industry engagement, the exchange of technical expertise, better animal welfare and trade outcomes for Australia.

"I would like to thank the outgoing members—Ken Warriner, Terry Nolan, Garry Stark, John Ackerman and Jacqui Cannon—for their valuable contributions."

For more information on the Indonesia–Australia Partnership on Food Security in the Red Meat and Cattle Sector visit redmeatcattlepartnership.org.  To continue reading the entire Media Release, please click here.

Mining Divestiture Obligations - Update

In his latest article, Bill Sullivan of Christian Teo & Partners, looks at changes to regulations concerning mining divestiture provisions.

“One of the greatest impediments to foreign investment in the Indonesian mining sector is the divestiture obligation that applies to foreign-owned mining companies. Of particular concern to foreign investors has been the pricing of divestiture shares that must be sold to certain designated local parties exercising their first priority purchase right.

A recently issued regulation, however, indicates the Government may, finally, be moving to address at least some of foreign investors’ concerns about the divestiture obligation including the all-important divestiture price.”

To read this article in full, click here.

Indonesia Market Update

In their October 2018 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.