Phil Turtle
National President

President's Column

Dear Members and Friends,

As COVID-19 continues to influence our lives, with less than one month until IA-CEPA enters into force on 5 July, a great deal of activity has been underway in preparations for implementation, and in promoting the Agreement.

Many of you have participated across locations and time zones in recent AIBC Webinars addressing different aspects of the Agreement, together with the challenges and opportunities that have emerged as a consequence of COVID-19. Certainly, there will be a significant focus on digital delivery of a myriad of services, with great potential for collaborations in these areas. Our partners at the Australia-Indonesia Centre recently published this article on “How COVID-19 is accelerating Indonesia’s digital transformation”.

We have been encouraged by the very healthy levels of interest in our own recent events, together with those in which we have participated with others. This groundswell of interest will surely help give IA-CEPA a boost as we progress into implementation, with a number of organisations poised to tap into the various benefits as soon as the flag drops.
 

Trade Minister Simon Birmingham will be an upcoming guest of AIBC to launch IA-CEPA

Continuing our central role in all things IA-CEPA, and Australia-Indonesia business links more generally, the AIBC is delighted to have been invited to host Trade Minister Birmingham for a very special IA-CEPA launch event on Thu 9 July at 2:30pm AEST (GMT+10), as the first such event after entry into force. This event will be held virtually in conjunction with our partners Austrade, BlueScope, Coca-Cola Amatil, Monash University and Ionize. Registrations for this event will open soon, so please keep an eye out for further notifications.

It is an important time to be involved with AIBC, so as IA-CEPA inches inexorably closer, once again we encourage our Members and new Members to be part of the success of IA-CEPA with us. Please visit us to renew or join today.

Phil Turtle
National President

With under 4 weeks to go before IA-CEPA enters into force on 5 July, it is increasingly important for businesses to bring themselves up to speed with the detail of the Agreement, relevant to their areas of interest. Once again the DFAT IA-CEPA portal is the perfect place to start, with development continuing on a “Guide to using IA-CEPA” for export or import of goods, that will be published once origin certification and tariff-rate quota (TRQ) arrangements have been finalised.

If your business is one that is positioning itself to benefit from the new provisions of IA-CEPA, we’d be delighted to hear from you here, to capture and share success stories as they emerge. This will be important to build momentum, and encourage others to see what they can do too. AIBC will feature a range of articles over coming months, showcasing some of the early-movers and the range of activity.

Mark Vassella, CEO of BlueScope (AIBC National Corporate Members) observed “BlueScope has been a strong supporter of free-trade agreements that reduce barriers to trade in steel. For example, we have been enthusiastic supporters of the Indonesia-Australia Comprehensive Economic Partnership Agreement, and have already signed a new customer for exports from our Port Kembla Steelworks to Indonesia.

This 5000-tonne order (with another 5000 tonnes imminent) is a small part of the 800,000 tonnes of steel we export from Australia each year — but it is yet another example of why Australia can be a competitive manufacturer on the global stage.”

Another area that will hopefully generate some interest and activity, will be the associated Skills Development Exchange Pilot Project. Under this Project, special provisions will be made for the exchange of personnel between Indonesia and Australia for skills development purposes. This will have streamlined application and visa provisions underpinning this Program, with final details being developed now. AIBC and IABC Members will have special access to this Program, which will of course now be subject to prevailing travel limitations due to COVID-19.

As we have noted previously, the benefits and opportunities from IA-CEPA are many and broad in scope, so business needs to prepare. Correct paperwork and other measures may be required to tap into some of the benefits, so please consult with AIBC or your advisers.
 

BlueScope CEO Mark Vassella – Achieving early outcomes from IA-CEPA

Alongside the entry into force of IA-CEPA is the proposed termination of the existing Bilateral Investment Treaty (BIT) between Australia and Indonesia. This is hoped to happen concurrently with IA-CEPA entry into force, with the Joint Standing Committee on Treaties (JSCOT) currently reviewing this prior to termination. AIBC has been watching this with interest, and consulting with Members on the implications. AIBC’s submission on BIT termination can be viewed here.

Into the future investors will have protections under both IA-CEPA and the existing AANZFTA, however with termination of the ‘sunset clause’ contained in the BIT, investors with potential claims under the BIT should seek advice on this.
 
AIBC looks forward to playing an important role in the successful implementation of IA-CEPA, including as part of the Indonesia-Australia Business Partnership Group IA-BPG, that comprises the AIBC, ACCI, Ai Group, IABC, KADIN and APINDO).

We have some very special Virtual events coming up around the launch of IA-CEPA, so keep an eye on our Website and Social Media for further announcements.

A recent article on IA-CEPA by Australia’s Ambassador to Indonesia, H.E. Gary Quinlan AO, can be seen here.

As both our countries progress towards a “new normal”, free-up activity, and balance this against public-health concerns, there are continual updates to regulations and economic initiatives in place.

For Australia, the Australian Government’s website here, remains a comprehensive portal to the very broad range of health and business related information.

Australian businesses are also assisted by Export Finance Australia, Austrade (Export Market Development Grants), and the International Freight Assistance Mechanism.

For Indonesia, there is also a broad and expanding array of initiatives, however businesses operating in Indonesia are best served by information obtained from their established advisers.

Our counterparts at the IABC in Jakarta have been kindly circulating an updated informal timeline/overview, with the latest here.

Webinar - IA-CEPA Amidst COVID-19

On Thursday 4 June, AIBC was delighted to partner with the Indonesian Embassy in Canberra, to deliver a Webinar event focussing on the “Indonesia-Australia Comprehensive Economic Partnership Amidst COVID-19”.

This event was Moderated by AIBC’s National President Phil Turtle, and featured an array of guests involved in the development and implementation of IA-CEPA.

Once again it was heartening to have well over 300 participants across Australia and Indonesia joining in, demonstrating the interest in business between our countries as we approach the dawn of IA-CEPA.
 

AIBC President Phil Turtle with Ambassador Legowo and Event panellists delivering via Zoom
 

Speakers for the event, with links to their presentation slides, were;

• H.E. Ambassador Kristiarto Legowo – Indonesian Ambassador to Australia - Welcome Address
• Pak Wisnu Wijaya Soedibjo - Deputy Chairman for Investment Cooperation, BKPM - Keynote Address (slides);
• Ibu Ni Made Ayu Marthini – Director of Bilateral Negotiations, Indonesian Ministry of Trade (slides);
• Ibu Shinta Widjaja Kamdani - Deputy Chair, Indonesian Chamber of Commerce and Industry (KADIN) (slides);
• Stephanie Fahey – CEO, Austrade (slides);
• Bryan Clark – Director Trade & International Affairs, ACCI.

A recording of this event is available here.

AIBC thanks Ambassador Legowo and the Indonesian Embassy in Canberra for partnering with us for this event, and thanks all our panellists for their much appreciated contributions.

AIBC NSW Update

On 9 June 2020, the AIBC hosted a Webinar entitled ‘Opportunities and Challenges arising from COVID-19 for Australian and Indonesian business’, featuring 5 charismatic speakers from a wide range of industries in the Australia-Indonesia private sector. The panel included Bima Tjahja (Bukalapak, VP Data & Growth), Erik Meijer (Telkom-Telstra, President Director), George Marantika (Chairman Australian Committee, KADIN Indonesia), Ghirish Pokardas (Principal, KKR), and Mahjabeen Zaman (Senior Investment Specialist, Citi Australia).
 

Webinar participants joining via Zoom

Over 300 audience members viewed the 2 hour session, which was facilitated by NSW Chair Nick Alexander, and covered a wide range of topics including:

• Bukalapak’s unique marketing strategy and rivalry with Tokopedia;
• the benefits of an Australian university education;
• the characteristics in takes to succeed as a Western businessman in Indonesia;
• the key opportunities flowing from the IA-CEPA;
• the APAC businesses and sectors that are emerging stronger in COVID-19; and
• how Australia can better challenge Singapore as a financial hub in Southeast Asia.
   

Finally for those who missed it, you can access the recording here.

Nick Alexander
NSW Chair

AIBC VIC Update

On 26 May the Victorian Young Professionals hosted a Kopi Digital via Zoom, which was an intimate opportunity for engagement with AIBC Victoria’s Young Professionals in these difficult times.

The event included 20 attendees from across Indonesia and Australia working in a range of industries including government and private sector. There was a strong depth of engagement amongst the AIBC Young Professionals despite these turbulent times, and this fireside-chat-style digital event was an opportunity to take a temperature-check on their sense of the bilateral relationship, how it has developed to date and how to take that relationship forward for the future.

It was also a chance to brainstorm new ideas to take the AIBC Young Professionals chapter further down the road to digital success in the post-COVID world. There was a great energy in the ‘Zoom room’ and many suggestions were made on how to target engagement of young professionals working remotely in the bilateral space going forward.

As a result of the suggestions raised in the Kopi Digital, AIBC Victoria is putting together a working group of young professionals to implement many of these new ideas and continue the conversation. If you are interested in getting involved, please reach out to Candice Colman at Candice.j.colman@gmail for further details or to express your interest.
 

Candice Colman
AIBC VIC Young Professionals

IABC Executive Director Role

Our colleagues at the Indonesia Australia Business Council (IABC) in Jakarta, are currently seeking applications for the position of Executive Director.

In this time of IA-CEPA, this is a particularly important role, and we encourage suitably qualified and passionate individuals to apply.

Details can be found here.

Australian Business in ASEAN Survey 2020

AustCham ASEAN, of which our sister organisation the IABC is a Foundation Member, recently launched its 2020 Survey on Australian Business in ASEAN.

“AustCham ASEAN produces an annual survey report, providing unparalleled insights into the confidence and plans of the Australian business community in ASEAN. The insights from this report are utilised to inform key policy makers as to the opportunities and challenges in each individual member state and across the region.”

The 2020 Survey can be viewed here.

Indonesia Tourism: International Webinar Series - Australia

Indonesia Tourism invites you to an Australian travel industry update as part of Indonesia’s International Tourism Webinar series.

Hear from influencers and decision makers about Indonesia’s safety protocols, a 5-star safe-zone pilot project in Nusa Dua, Bali and the situation on the ground.

A New Tomorrow : BALI COVID-19 SAFETY UPDATE

Date:       Wednesday 17th June 2020
Time:      14.00 – 15:00 (AEST) / 12.00 – 13:00 (AWST)

RSVP:     Please register via this link: webinar-id.com  (or paste directly into your browser)

There will be a Q&A during the session and a door prize. 

Wonderful Indonesia look forward to welcoming you.

For further information please contact Miriam Tulevski via email here.

Australia Indonesia Youth Association (AIYA)

AIYA Webinar:  Australia's declining Study of Indonesian in Universities

16 JUNE 2020 2PM WIB/SPM AEST

ZOOM REGISTRATION: BIT.LY/AIYA16JUN

Interested in hearing from some Indonesian Studies experts in Australia? Ever wondered why there are declining numbers of Indonesian Studies students in Australia even though Indonesia seems to be of increasing importance to the region? What are some things young people can do to promote the uptake of Indonesian language?

Join Emeritus Professor David T. Hill AM from Murdoch University, Kirrilly McKenzie an Indonesian teacher from Eltham High and Dr Michelle Kohler from the University of South Australia for a great discussion!

Supported by:

Indoview

IIPC Newsletter

The Indonesia Investment Promotion Centre (IIPC) has published its May 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 newsletter, which can be viewed here.

COVID-19 and Force Majeure

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at contractual obligations under COVID-19.

"The major problems caused, in Indonesia and elsewhere, by Covid-19 have resulted in some companies looking at the possibility of obtaining temporary relief from their ongoing contractual obligations by declaring force majeure.
Force majeure is, however, a complicated subject that is often misunderstood, especially in the context of financial difficulty and what to do about employee obligations.”

To read this article in full, click here.


Indonesia Market Update

In their May 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.