Phil Turtle
National President

President's Column

Dear Members and Friends,

Once again this month, we find ourselves with a renewed escalation in the US-China Trade War, driving Share Markets and Global Growth forecasts sharply lower, and placing perhaps even greater emphasis on the Trade Agreements developing in our region. Only in the last week, Trade Minister Birmingham has attended the 8th Round of RCEP Negotiations in Beijing, at the same time as the Australian and Indonesian Governments advance IA-CEPA towards ratification later this year.

On IA-CEPA, we have been delighted to join our Ambassador to Indonesia, Gary Quinlan AO, and Elizabeth Ward, Chief Negotiator - Regional Trade Agreements Division (DFAT), at a variety of events around the country (see articles below). Together with DFAT and Austrade, AIBC has been very active in promoting IA-CEPA to our Members and the broader business community, and in advocacy for the ratification of the Agreement.

Also in the last month, Australia’s Joint Standing Committee on Treaties (JSCOT) has formed to review a number of Agreements, including IA-CEPA, and has called for public submissions. AIBC will be making a strong submission in support of IA-CEPA in its entirety, and would urge all to consider making a submission here before the closing date of 23 August. It is important our business community supports IA-CEPA, and makes its voice heard by JSCOT as it makes its recommendations to the Australian Parliament.

President Joko Widodo has announced the relocation of Indonesia’s capital to a location in Kalimantan

As both Governments settle back in after their elections, Indonesia’s President, Joko Widodo, has committed to ‘sweeping reforms’ over his final 5-year term as President, aimed at attracting foreign investment and ‘unleashing the potential of Southeast Asia’s biggest economy’. Also strongly on Indonesia’s agenda, is the long-suggested relocation of its capital away from Jakarta, and the densely populated and natural disaster prone island of Java, with a location in Kalimantan recently announced by the President. As many would appreciate Jakarta is under significant pressure from its vast population, and the fact that the city continues to sink into the Java Sea.

Again, with much activity around promoting the IA-CEPA planned for the remainder of the year, further announcements have been made on the IABC Conference in Bali in November, and the Indonesia Australia Business Summit scheduled for September 19 in Sydney (see below for details). We look forward to welcoming as many of you as possible to these important events.

Phil Turtle
National President

AIBC Membership - Renewal and New Memberships

Current Membership Expired as at 30 June 2019

Thank you to all our existing Members who have recently renewed their Membership and to those new Members joining us for the first time, we welcome your support and look forward to hosting you soon at one of our many events around the country.

For those yet to renew, 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.  Please click here to view the current Program.

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.

Indonesia Australia Business Summit - 19th September, Sydney

We are pleased to inform you that the Embassy of the Republic of Indonesia in Canberra in collaboration with the Consulates General of the Republic of Indonesia in Sydney, Melbourne, and Perth, the Consulate of the Republic of Indonesia in Darwin, the Indonesian Investment and Promotion Centre, and the Indonesian Trade Promotion Centre in Sydney will be convening the annual Indonesia Australia Business Summit (IABS) at Intercontinental Hotel, 117 Macquarie St, Sydney on 19 September 2019. The theme for IABS 2019 is "IA-CEPA: Capitalizing Partnership, Gaining Mutual Benefits".

The Summit, previously known as "IndonesiaFair", has been convened since 2014. The previous Summits in Canberra, Perth, Adelaide, and Melbourne have managed to further enhance economic cooperation between Indonesia and Australia through the facilitation of significant investment and business projects.

This year's Summit will discuss issues covering automotive, vocational education and training (VET), and infrastructure in the development of the tourism industry and Special Economic Zones (SEZ).

To view the Program and register, please click here.

Trade Expo Indonesia 2019

The 34th Trade Expo Indonesia 2019 Exhibition and Trade Mission is fast appraoching and will be held between 16-20 October 2019

For the past few years, Indonesia has achieved a positive trend of export growth in a variety of products and services to the global market, which has to be both maintained and improved further, because Indonesia is also competing with other countries in exploring global opportunities.

To keep on improving national export performance, the Ministry of Trade has been proactive in inviting and bringing in buyers and investors for a direct deal with Indonesian providers of export products and services at the annual tradeshow of Trade Expo Indonesia (TEI).

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 paralel activities consisting of Trade, Tourism and Investment Forum, Business Matching, Business Counseling, Regional Discussion, Overseas and Local Trade Mission, Export Start-Up Competition and Talk Show.

For further program information and registration details, please click 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.

Stronger Education Partnerships Report

With the upcoming IA-CEPA promising much by way of two-way Educational opportunities, the Australia-Indonesia Centre (AIC), together with the Australian Department of Education, has released its “Stronger Education Partnerships - Opportunities for Australian education and training providers in Indonesia” Report, which can be viewed here.

“For many reasons, Australian education and training institutions are uniquely well placed to help Indonesia realise its education, skills and training aspirations.

This report looks at how Australian providers can explore opportunities in Indonesia to the benefit of both countries.”

For more information see the AIC website here.

NSW Update

IA-CEPA Briefing:  The Indonesia-Australia Comprehensive Economic Partnership Agreement Update

NSW AIBC was pleased to jointly host, with DFAT NSW, the IA CEPA update seminar in Sydney on Friday 19th July.  There were over 30 registrations for the event and it was an excellent networking opportunity for our members and guests.

The presentations were followed by a Q and A session moderated by AIBC with our keynote speakers.

Ms Elizabeth Ward, Chief Negotiator Regional Trade Agreements Division, DFAT presenting on IA-CEPA at the joint DFAT / AIBC Seminar on 19th July

(L-R) Caroline McCarthy, Assistant Secretary Regional Trade Agreements Division, DFAT and Elizabeth Ward with Michael Fay, AIBC NSW Chair at the joint DFAT / AIBC Seminar

Thanks to senior negotiators, Caroline McCarthy and Elizabeth Ward from the Trade Agreements Division at DFAT, Canberra. We also thank our hosts DFAT NSW and the staff as well as Di Robinson from the NSW AIBC Committee for their great help in arranging the event. We were pleased to welcome new AIBC member Ms Farrine Georgepoulos, Managing Director of Exelix.

Preparing Your Business in Indonesia

NSW Deputy Chair Nick Alexander attended a panel discussion entitled ‘Preparing Your Business in Indonesia: Looking up the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)’ held at the Indonesia Investment Promotion Centre (IIPC) Office in Governor Macquarie Tower, Sydney. The event was sponsored by the Indonesia Investment Coordinating Board (BKPM), Consulate General of the Republic of Indonesia, Pricewaterhouse Coopers, and the Indonesian Chamber of Commerce and Industry, and featured speakers from BKPM and our sister organisation in Indonesia, the IABC. It was attended by a wide range of stakeholders from the private and public sectors.

Nick Alexander, NSW Deputy Chair together with Indonesian Government representatives at the IA-CEPA Seminar on 25th July.

Michael Fay, 
NSW Chair

QLD Update

From Stagnation to Regression? Indonesian Democracy after Twenty Years

Indonesia is a rare case of democratic transition and persistence in Southeast Asia. But like many other countries around the world, its 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.

For further information and registration details, please click here.

Asia Pacific City Summit 2021 heads to Denpasar, Indonesia

Denpasar City has landed the job of hosting the Asia Pacific Cities Summit & Mayors’ Forum in 2021.

Brisbane City Lord Mayor Adrian Schrinner announced Denpasar’s successful bid from the closing ceremony of the Asia Pacific Cities Summit & Mayors’ Forum, in Brisbane on July 10.

The Biennial Summit sees key city leaders join with the best of business to plot a course to successful, sustainable cities across the Asia Pacific, sharing knowledge and building relationships.

Playing host will give Indonesia the chance to both showcase the beauty and the strategic business opportunities resident in their nation, truly cementing Indonesia as a fundamental player in the Asian Pacific.

This Summit, the 13th to be held, will also provide Australian participants to unrivalled access to key players at a domestic and national level in Indonesian business and politics.

The final decision was made on the bid after a Q&A session was conducted in front of judging panel at the Brisbane event. Judges considered the bidders’ vision for the Summit, their competitive advantage, as well as their planning and execution strategy.

This year the Summit was attended by 2400 delegates representing 140 cities from across Asia, America and Europe.

AIBC-Qld was proud to support Denpasar’s bid and looks forward to working with our national members to leverage the 2021 event.

Please click here for more information. 

Indonesian Deputy Governor and Mayors visit Brisbane

A large delegation of Indonesian officials visited Brisbane earlier this month for the 2019 Asia Pacific Cities Summit & Mayors’ Forum and to present trade and investment opportunities with Indonesia.

Pak Heru Subolo, Indonesian Consul-General to Sydney, the Vice-Governor of Central Java, Taj Yasin Maimoen and the Mayors of Bogor, Denpasar and Semarang were all key delegates and speakers at the Brisbane Summit.
 

In the lead up to the Summit, the Indonesian Trade Promotion Centre (IPTC) took the opportunity to partner with PwC and AIBC-Qld to deliver a presentation on trade and investment opportunities with Indonesia which attracted 60 attendees on 8 July 2019.

Paul Martins, AIBC QLD Chair addresses the Audience

The informative session also featured updates from Trade and Investment Queensland’s Commissioner to Indonesia, Ben Giles who is doing an excellent job representing the Qld Government and assisting Queensland based businesses.

AIBC Qld wishes to thank PwC Brisbane for their generous support for this event.

More information and opportunities can be found here.

Paul Martins,
QLD Chair

SA Update

Indonesia Food Export Forum:  Opportunity, Risk and Reward

AIBC is proud to present this session, which deals with the nuts and bolts of exporting food products from South Australia to Indonesia.  It’s an opportunity for SA food producers and manufacturers to gain greater insight about the market opportunities available in our nearest and fast-growing neighbour.

The session will be a facilitated panel discussion, with the opportunity for attendees to ask questions. Topics covered will include:

An overview of the Indonesian economy;

• Insights into Indonesia’s changing demographics and consumer behaviours;
• Potential market opportunities for Australian food exporters;
• Managing export logistics;
• Managing risks on the Indonesian side.

Our panellists have a broad range of expertise in doing business with Indonesia:

• PATRICK KEARINS is the State Director of the Australian Trade and Investment Commission (Austrade).  He was previously Australian Trade Commissioner in Jakarta for nearly 6 years, and he is knowledgeable about food exports from SA;
• ROBERT CHONG is founder and CEO of Commodore Trading, a Sydney based company with more than 50 years’ experience in facilitating food and wine exports from Australian producers to Indonesian customers;
• AMALIA SOSRODIREDJO is Managing Director of Decorum Group Pty Ltd, an Adelaide based sustainability and management consulting business.  She holds a law degree from an Indonesian university and a Masters of Sustainability from the University of Adelaide.  She is a member of the SA Branch Committee of the AIBC;
• JIM McMILLAN will be the facilitator of the session.  Jim is SA State Chair of the AIBC, an experienced tax barrister, and a former international tax partner with PwC in Indonesia.  His experience includes advising on tax and business issues associated with doing business in Indonesia.

Event Details:

Date:       Monday, 26th August 2019
Time:       4:30 pm - 6:30 pm
Venue:     PKF Adelaide, 9th Floor, 81 Flinders Street Adelaide

RSVP:     Please click here to register for this event.  Drinks and light snacks will be served at the conclusion of the event.

AIBC gratefully acknowledges the support for this event from Food SA, the Australian Trade and Investment Commission and PKF:

IA-CEPA Briefing:  The Indonesia-Australia Comprehensive Economic Partnership Agreement Update

On 22nd July, a productive and informative session was held by Ms Elizabeth Ward, Chief Negotiator Regional Trade Agreements Division, DFAT on the opportunities for Australian Business under the new  IA-CEPA Agreement.

Amalia Sosrodiredjo opens the event and welcomes guests

The event was opened by Amalia Sosrodiredjo, on behalf of AIBC SA Chair Jim McMillan, thanking DFAT for their support of this event. Elizabeth Day, Director of the DFAT South Australian State Office was also present at the event delivering closing remarks. Elizabeth Ward briefly explained main outcomes for Australia and Indonesia and benefits for Australian businesses. With Indonesia's large population and geographic location in proximity to Australia, there are opportunities available to explore under the IA CEPA bilateral agreement such as goods (live cattle, sugar, frozen beef etc) and services and investment in sectors like education and tourism.

Ms Elizabeth Ward addresses the Audience

A productive Q & A session on the areas mentioned below created further discussion:

• Education sector regarding visa for Australian students studying in Indonesia;
• Entrepeurship visa and IA-CEPA (linkage and connection);
• Credibility of dispute resolution court in Indonesia for Australian businesses;
• Tourism visa for Indonesian's coming to Australia.

AIBC SA would like to thank DFAT for hosting this event:

Jim McMillan,
SA Chair

VIC Update

AIBC is delighted to announce 10 Scholarships were awarded to Indonesia this year under the Victorian Government Hamer Scholarships Program.  On Thursday, 1st August the Hon. Martin Pakula MP, Minister for Jobs, Innovation and Trade presented the awards in conjunction with Ibu Spica, Consul General for Victoria and Tasmania.  Philipp Ivanov, CEO, Asia Society and partners of the Hamer Program welcomed sharing his experiences with all Hamer participants heading to Asia.

We congratulate all Hamer Scholars heading to Indonesia, China, Japan and Korea and look forward to hearing of their achievements upon their return.

The Victorian Government Hamer Scholarships Program is a language and cultural immersion program designed to build the Asia-engagement capabilities of Victorians and to help strengthen cultural awareness and partnerships between Victoria and Asia. The program provides scholarships for Victorians to undertake intensive language study at nominated universities or institutions in China, Indonesia, Japan and Korea.

IA-CEPA Briefing:  The Indonesia-Australia Comprehensive Economic Partnership Agreement Update with Ms Elizabeth Ward:

On 12 July, AIBC Vic in collaboration with the Department of Foreign Affairs and Trade (DFAT) hosted a briefing and update on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).  We were fortunate to have DFAT’s Chief Negotiator, Regional Trade Agreements Division, Ms Elizabeth Ward deliver the presentation and then engage in a question and answer session with the 30 AIBC members and friends who were present.  Topics explored during the session included people to people relationships, start-ups, taxation and the benefits of multilateral and bilateral agreements.

Ms Elizabeth Ward, Chief Negotiator Regional Trade Agreements Division, DFAT pictured with AIBC VIC Chair, Jared Heath

Elizabeth Ward addressing the audience
 

Jared Heath,
VIC Chair

WA Update

IA-CEPA Events – Ambassador Gary Quinlan AO

Recently visiting Perth for a broad range of events heralding IA-CEPA, were Australia’s Ambassador to Indonesia, Gary Quinlan AO, and Elizabeth Ward, Chief Negotiator - Regional Trade Agreements Division (DFAT).

Over several days, AIBC Members and others attended a host of breakfast and boardroom briefings covering IA-CEPA, the ratification process that is underway, and opportunities across a range of sectors.

Specific Industry sectors were covered in separate events, focussing on F&B and Agriculture, Mining and Energy and International Education.

L-R Elizabeth Ward, Ross Taylor (Indonesia Institute), Ambassador Quinlan, Phil Turtle (AIBC President), Ian Satchwell (Airlie Asia)

L-R Indah Mekawati (Consul), Dewi Gustina Tobing (Consul General – WA), Kate O’Shaughnessy (DFAT), Phil Turtle (AIBC President), Ambassador Quinlan, Julia Scott (AIBC WA Chair)

Brad Rogers (CEO Bis Industries) with Ambassador Quinlan and Elizabeth Ward) at Mining forum

International Education – Market Access panel session with Ambassador Quinlan, Elizabeth Ward, Tim Martin and Elizabeth Campbell-Dorning

The AIBC was pleased to welcome Ambassador Quinlan and Elizabeth Ward, together with their colleagues from Jakarta, Tim Martin, Trade and Investment Commissioner (Austrade) and Elizabeth Campbell-Dorning, Counsellor (Education and Science), Department of Education.

Thanks to DFAT, Austrade and StudyPerth for their kind hosting of these events.

Indonesia-Australia Comprehensive Economic Partnership Agreement
(IA-CEPA) – Workshop Series

The Australia Indonesia Business Council (AIBC) invites you to take part in a tailored, four-part workshop series exploring how best to prepare for the introduction of the recently signed, and soon to be ratified, IA-CEPA. The series, with 3 workshops in Perth plus 1 in Jakarta, will feature guest speakers from event sponsors Westpac, Qantas, Pitcher Partners, Export Finance Australia (formerly known as EFIC), AustCyber, together with other industry experts.

IA-CEPA creates a framework for Australia and Indonesia to unlock the vast potential of the bilateral economic partnership, fostering economic cooperation between businesses, communities and individuals.

IA-CEPA will improve conditions for services suppliers and the climate for two-way investment. Australian services suppliers and investors will have greater certainty for entry and operation in the Indonesian market, helping to facilitate more Australian investment in Indonesia. This will create more opportunities for Australians to help meet Indonesia's growing needs for investment and for the supply of world class goods and services in its market.

Workshop #1 - Food and Beverage (including AgTech)

Join us for the first workshop in the IA-CEPA series, which will focus on the key IA-CEPA outcomes around Food and Beverage (including AgTech). The workshop will consist of the following guest speakers who will explain and discuss the key Food and Beverages consequences of IA-CEPA relevant to their areas of expertise.

Guest speakers include:

• Jonathon Acosta – Freight Account Manager, Qantas;
• Ian Martinus – Director, WA AustCyber Node;
• Rob Di Carlo – State Manager SA, NT & WA, Trade & Invoice Finance, Westpac;
• Cameron Hall – Senior Business Development Manager WA, Export Finance Australia (EFA);
• Peter Arbuckle – Export Market Development Grant (EMDG) Consultant;
• Deborah Pett - Acting Executive Director for Trade and Investment, DPIRD;
• Darryl Daisley – Director Customs and international Trade, Pitcher Partners;
• Leon Mok – Managing Director, Pitcher Partners;
• Susan Hall, General Manager, WA Open for Business, DPIRD.

To register for this event, please click here.
 

Presented in association with:

Julia Scott
WA Chair

Indoview

Export Restrictions on the Rise

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the recent moves affecting the export of a range of products from Indonesia.

"Indonesia has introduced significant negative incentives for local exporters of certain products, including mineral products, to repatriate 100% of their export proceeds and to then use those export proceeds for certain specified purposes only.

The new negative incentives may be seen as just the latest evidence of the Government’s concern about the size of the current account deficit and the consequent need to take urgent action to reduce that deficit.

It remains to be seen, however, whether or not further “tightening the screws” on exporters will have any meaningful impact on the current account deficit.”

To read this article in full, click here.

Indonesia Market Update

In their July 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.