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  Issue Number 177, April 2019
 
In this issue
 
President's Column
QLD Update
SA Update
WA Update
Indonesia's Halal Product Assurance Laws
Unlocking IA-CEPA - Sustainable Skills
Export Grant Scheme, SME's and FTA's
Asia Gateway Program - Applications close on 12th May
IndoView
 
Events
 

For a list of current events, please click here.

 

 

Phil Turtle
National President

President's Column


Dear Members and Friends,

Over this last month, Indonesia has gone to the polls in the World’s largest single day election. As counting continues, official results in the Presidential race are to be handed down on May 22, just after Australia itself goes to the polls. It will be interesting to see how these final results, including the makeup of the Indonesian parliament, match some of the early counting and predictions which predominantly show a return of President Jokowi.

In the period around our elections, there has understandably been a lull in activity around the recently concluded, but as yet unratified, IA-CEPA. With Indonesia’s Trade Ministry now expected to focus on a similar Agreement with Korea, following on from IA-CEPA and its first with the European Union, it is important for all of us to appraise ourselves with an understanding of the scope and benefits of IA-CEPA. It is also just as important that we all be part of the socialisation of the Agreement, to make sure as much of our respective business communities take advantage of IA-CEPA as possible once it is ratified and enters into force, hopefully later this year. For this, the most comprehensive source of information remains the DFAT website here.

With the successful opening of Jakarta’s long-awaited MRT, Indonesia has also been planning for the possible relocation of its capital, to relieve some of the pressure on the improving yet stretched infrastructure in Jakarta, and away from the crowded island of Java. This relocation study has been an ongoing effort under the Minister for National Development Planning, and friend of AIBC, Minister Bambang Brodjonegoro, who we look forward to welcoming to Australia again soon. Progress on this ambitious goal, along with the ongoing development of “10 New Bali’s”, will be something to watch over coming months.

H.E. Prof. Bambang Brodjonegoro, Minister for National Development Planning, addressing the AIBC Conference in November 2018 (Photo: Nina Williams Photography)

With just 6 months now until the IABC Conference, to be held in Bali this November 3-5, the organising committee has now formally launched this event as “CONFERENCE 4.0 - The conference about our future – are we ‘smart’ enough”, in recognition of the rapidly advancing and disruptive technology that affects all business sectors. For all of us involved in business between our countries, it will be an event not to be missed.

Furthermore, a number of AIBC Members and Friends have recently had an opportunity to meet with our next Consul General to Bali, Ms Anthea Griffin, as she travels around the country for consultations prior to her posting later in the year. As the transition approaches, we wish Anthea well in this busy and important post, and also thank outgoing Consul General,
Dr Helena Studdert, for her outstanding efforts over the last 3 years.

 

Phil Turtle
National President

QLD Update

AIBC (Qld) with Griffith Asia Institute Public Lecture | The Presidential and parliamentary elections in Indonesia: What do we need to know, and why do we need to know it?

 

 

Experts gathered on 15 April to address the biggest election in the world as Indonesians headed to the polls this month. With more than 190 million eligible voters, 800,000 polling stations, 300,000 candidates and 20,000 seats, the numbers are mind-boggling. Nearly as confounding as the politics.

To help navigate election complexity, pivotal think-take Griffith Asia Institute (GAI) partnered with the Australia Indonesia Business Council (AIBC - Qld) to host the public lecture with two special guest speakers from Griffith University. Adjunct Professor Colin Brown from the Griffith Asia Institute addressed the political aspects of the elections and the significance of the elections for the Australia-Indonesia relationship. Dr Denni Arli from the Griffith Business School addressed the economic and business aspects of the elections. Listen to the public lecture podcast online. Now we await the final results which are due 22 May 2019.

More photos available here.

 

Article: Griffith Asia Institute and AIBC-Qld and Photos: Griffith Asia Institute

 

Paul Martins,
QLD Chair

SA Update

Ministerial Luncheon re Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)

Australia and Indonesia signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on 4 March.  The SA State Chairman (Jim McMillan) attended the signing ceremony in Jakarta. AIBC SA hosted a lunch about this with Minister for Trade Senator Simon Birmingham, on 8 March. Five committee members attended, plus several other AIBC members: Prof Peter Draper, Keith Wilson and Ray Ash (all from University of Adelaide), Andi Asiandi, Olivia Atmadja-Sharp and David West.

The Minister summarised the Agreement and its implications for South Australia. He said that it is incredibly important beyond trade. Tariffs are eliminated for all Indonesian goods coming into Australia, and for most Australian goods imported into Indonesia. The services sector changes are focused particularly on education (especially VET, where he is looking for some early takers to fill needs in the Indonesian market). Investment is another major emphasis (e.g. the “10 New Balis”), as are horticulture and tourism. Modern ecommerce provisions are included. We also have to think about how to lift the cultural and people-to-people ties. Austrade now regards Indonesia as a priority market. Both countries have established teams to identify opportunities for business, SMEs, etc. It may take 12-18 months to identify the best opportunities; the government may put some resources behind it. DFAT is planning to hold a seminar on the IA-CEPA in Adelaide in April. (Note: this was held on 12 April.)

The Minister also mentioned that the Jakarta Embassy is Australia’s biggest diplomatic post in the world, and Indonesia is probably our deepest relationship with any country after the Five Eyes (UK, USA, Canada, NZ, Australia).

SA Branch Committee and AIBC Members with Trade Minister Senator Simon Birmingham

Jim McMillan,
SA Chair

WA Update

Appointment of The New Australian Consul-General in Bali

In March 2019, the Australia Minister for Foreign Affairs, Senator the Hon Marise Payne announced the appointment of Ms Anthea Griffin as Australia’s next Consul-General in Bali, Indonesia. The Minister noted that with around one million Australians travelling to the island annually, the Consulate-General in Bali is one of the busiest providers of consular services. Ms Anthea Griffin is replacing Ms Helena Studdert who has held the role since 2016. Ms Griffin is a senior career officer with the Department of Foreign Affairs and Trade (DFAT), and was most recently Assistant Secretary, Overseas Operations and Services Branch.

During her pre-posting consultations in Perth on 29 April 2019, the AIBC WA committee attended a Sundowner event hosted by DFAT WA to welcome Ms Griffin in person. Ibu Dewi Tobing, the Indonesian Consul-General in Perth, also joined the event to support Ms Griffin’s new appointment. Prior to commencing her new role in Bali on 17 June 2019, Ms Griffin will be in Canberra and then Jogjakarta to sharpen her Bahasa Indonesia skills. The AIBC WA would like to congratulate Ms Griffin, and wish her all the best in her new role in continuing to provide high quality assistance to Australians, whilst also strengthening business, development, education and cultural connections in Bali and Western Nusa Tenggara.

(L-R)  Omar Harris, Ibu Dewi Tobing, Ms Anthea Griffin & Raj Kale

 

AIC Election Update

On Monday 8th April 2018, AIBC in collaboration with the Australia Indonesia Centre (AIC) and the UWA Public Policy Institute hosted a discussion on the state of the race for the Indonesian elections. On Wednesday 17th of April 2019, approximately 190 million Indonesian voters will set off to the polls to elect their President and Vice-President. This election will be the biggest in Indonesian history, because for the first-time, elections for the President and for both houses of parliament will be held at the same time.  At the end of voting, the people will have elected 136 members of the largely symbolic national Regions House, 575 members of the powerful House of Representatives, 2,207 provincial level MPs from the 34 Provinces and 17,610 local councillors across more than 500 local authorities.

Taking place in the UWA’s new Innovation Quarter (IQX), more than 40 guests joined the presentation from Kevin Evans, Indonesia Director of the AIC, who has been involved in Indonesian politics for 35 years. He shared his views and predictions for the forthcoming 2019 elections, which was followed by a panel discussion, moderated by Helen Brown (Digital Economy Fellow, the AIC), which explored the factors likely to have immediate and medium-term impact on the Australia-Indonesia trade relationship. It was a lively discussion, with a number of thoughtful questions coming from the floor.

Panellists:

  • James Castle (Founder & General Manager, CastleAsia)
  • Phil Turtle (National President, AIBC)
  • Ella Prihatini (Teaching Fellow, UWA)

More about Kevin Evans expert analysis and to the Guide to the 2019 Presidential Elections, can be found here.

Kevin Evans (Indonesia Director of the AIC) presents his analysis for the forthcoming Indonesian election

(R -L) Helen Brown moderates the panel discussion along with the panellists Phil Turtle, Ella Prihatini and James Castle

Guests engage with the Kevin Evans’ analysis on the Guide to the 2019 Presidential Elections

 

Visit to Perth by SKK Migas

A high-level delegation from SKK Migas, Indonesia’s Special Task Force for Upstream Oil & Gas, recently visited Perth for meetings with key business and Government groups, to promote investment in a number of recently released exploration blocks.

 

SKK Migas delegation visiting with representatives of AIBC, Austrade, and the Indonesian Consulate General - Perth

Under the leadership of Ibu Shinta Damayanti, Head of Exploration  Planning Division, this delegation shared insights into the history and aspirations for Indonesia’s Oil and Gas sector, and provided updates on Indonesia’s exploration potential and the new Gross Split PSC’s.

To view their presentation, click here.

For further information, Contact Ibu Shinta here.

Julia Scott,
WA Chair

Indonesia's Halal Product Assurance Laws

As part of research into Indonesia's Halal Product Assurance Law No. 33/2014, and its impact to the Food & Beverage business in Australia, Australia Awards Scholar, Debora Gracia, is seeking responses to a survey aimed at Australian Food & Beverage companies exporting (current and future) to Indonesia.

The objectives of this research are to determine: (1) the impact of above mentioned law to Australian businesses' export strategy, business practices, marketing strategy, and supply goods and services, (2) the awareness, understandings & feelings of Australian businesses about this halal product assurance law, (iii) the effective implementation strategies to support simplifying the process of policy compliance, and (4) the impact of this law on business relationship between two countries.

Apart from supporting our partners at the Australia Awards, and the high-calibre Scholars who participate, such research is invaluable to the future of our broader Trade & Investment relationship.

Please find the survey here.

The survey takes approximately 10 minutes to complete, and all information collected will only be used for the purpose for this research study and will not be shared with any third parties outside the University of Melbourne. All responses are voluntary and are anonymous.

Your support of this initiative is very much appreciated.

For further information, contact Debora Gracia here.

Unlocking IA-CEPA - Sustainable Skills

A number of AIBC Members are ramping up their efforts in the wake of the conclusion of IA-CEPA. In this article, Nigel Carpenter, CEO of Sustainable Skills, shares some of his insights around the TVET sector.

Gains of trade agreements can be focused narrowly on immediate transactions and outcomes. On that score the new IA-CEPA has certainly added more room to the flow of trade between Indonesia and Australia. In this case, the intent might be more important than the benefits that appear immediately.

With the benefit of well over two decades of solid economic growth, Australians might not appreciate the importance of stability in a nation, such as Indonesia, which is on a reforming path. Those of us who lived through the Australian reforms that opened trade, reformed the currency, withdrew protection and subsidy and generally turned the post-War orthodoxy upside down can certainly empathise with the fine balances involved. In Indonesia’s case there is some way to go to reach anything like the prosperity of typical Australians at the time we embarked on change.

Indonesia has effectively opened the bridge to Australia, a country that in many ways could not be more unlike Indonesia. Yet the reality of our adjacency makes close relations inevitable. The imperative now is to traffic that crossing and the IA-CEPA has provided the essential ingredient.

Followers of the IA-CEPA will be aware of the focus on education in many discussions. This is plainly an area of benefit to both communities. Indonesia’s leadership has progressively elevated education in its policy goals and President Jokowi is a strong advocate for improved skills outcomes in national vocational training systems. Australia is already an established provider of education to international students and will benefit from any greater flow of Indonesian students.

What emerged around the IA-CEPA is the realisation that the bridge required on education is in capacity building. Indonesia can benefit enormously from Australia’s adjacent education system – but only when its own is meeting its potential. The adjustment required is one that shifts the focus from trying to replicate Australian systems in Indonesia to one of applying Australian expertise to inform the design of Indonesian systems.

Sustainable Skills Ltd has been heavily engaged with Indonesian stakeholders for almost three years in a process that has shifted thinking and produced a strong sense of what Indonesia needs in vocational training. Projects are taking shape that will both build long term change and deliver some immediate effects – hopefully enhancing the ability of Indonesians to accelerate their social and economic progress.

Our focus has been on three levels of activity. At the national level, Indonesia aims to revise its approach to vocational skills in a comprehensive way and will develop at least two TVET Centres of Excellence for the leadership of that process through design and development. Sustainable Skills is closely engaged in that work. We are also working with existing Indonesian providers to align their activities more closely with Indonesia’s contemporary skills requirements. Thirdly, Sustainable Skills has developed a plan to establish an Australian led Indonesian managed training centre to bring resources to the immediate task of closing the substantial gap in supply of skills in key demand areas. All three activities present great opportunity to bring Australian expertise to bear in an Indonesian context. All have been advanced by the IA-CEPA’s focus on education and its settlement.

What’s required at the Australian end is a willingness to invest in Indonesian capacity – in order to enhance the potential of that bridge we finally have in place.

For further information, Contact Nigel Carpenter of Sustainable Skills here.

Export Grant Scheme, SME's and FTA's

After the recent Inquiry into access to free trade agreements by small and medium enterprises by Australia’s Joint Standing Committee on Foreign Affairs, Defence and Trade, some further focus has fallen on the effectiveness of the Export Grant Scheme.

The report of this Inquiry featured contributions from a range of sources, including AIBC Member Warren Cross, Managing Partner of Cross & Co Lawyers, supplemented by this recent letter to the Australian Financial Review.

For further information, contact Warren Cross here.

Asia Gateway Program - Applications close on 12th May

Are you a small to medium Victorian business seeking to boost your business or export activity with an Asian market? Do you employ 20 to 200 staff or have an annual turnover of greater than $1.5 million?

You could be eligible for an ‘Asia Gateway Voucher’ and funding of up to $50,000, to support your Asian market development planning and market entry strategy.  For further information on the Asia Gateway Program, please click here.

IndoView

Indonesia Market Update

In their March 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.

 

Foreign Investor/Service Provider Protection - Lessons from IA-CEPA

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the investor/service provider protection provisions of the recently signed IA-CEPA.

"On 4 March, Indonesia and Australia finally signed a ‘Comprehensive Economic Partnership Agreement’ after many years of negotiation and following repeated delays for political and other reasons.

The Comprehensive Economic Partnership Agreement deals with, among other things, investor and service provider protection.”

To read this article in full, click here.

 
 
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