Jennifer Mathews
National President

President's Column

I am pleased to present our final newsletter for 2022.

It’s been a busy and productive year for the Australia Indonesia Business Council.
Across our membership, we are seeing strong interest in engaging with Indonesia, and in building trade and business connections with our nearest neighbour -including through the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Earlier in the year, we were delighted to partner with DFAT in staging the National Industry Series “Indonesia it’s time to take a Fresh look” – focussing on priority industry sectors where there is a strong alignment between Indonesian economic priorities and Australian industry capability.  Events were held across the country and attended in person, and virtually, by over 1000 participants from across Australia and Indonesia.

AIBC was also pleased to collaborate with the Indonesia Australia Business Council (IABC) and the Indonesian Embassy, in hosting a series of B20 Business Forums as part of a major Indonesian B20 trade and investment delegation to Australia. The Business Forums provided an important opportunity for collaboration and dialogue between Indonesian and Australian industry and government representatives, in the lead up to Indonesia’s hosting of the B20. 

More recently, AIBC was delighted to partner with the Northern Territory Government in holding its National Conference in Darwin from 2-4 November 2022.  With the theme “Partnering for Growth – Stronger,Together”, this year’s conference was an outstanding success with around 400 delegates attending in Darwin or online.  The Conference brought together government and business leaders from across Australia and Indonesia, sharing their insights on opportunities to partner with Indonesia across priority industry sectors including healthcare; education and training; the energy transition and many more. 

Immediately after the National Conference, I had the privilege of representing AIBC at the B20 Summit hosted by the Indonesian Chamber of Commerce and Industry (Kadin) from 13-14 November in Bali.  AIBC was delighted to see such a strong delegation from Australia, led by Prime Minister Anthony Albanese, with representatives from the Business Council of Australia (BCA) and the Australian Chamber of Commerce and Industry (ACCI).

Throughout the year, AIBC’s State Chapters arranged a range of networking and other events, aimed at providing up-to-date market intelligence and connections.   AIBC’s Industry Groups (Healthcare; Mining and Energy; Agriculture and Food) were also active, providing a valuable industry sector focus for our membership and stakeholders. 

To build on this great work, AIBC is pleased to announce the formation of two new Industry Groups – on Investment, Finance and Infrastructure to be chaired by Peter McGregor and on Education, Skills and Training to be chaired by Michael Fay.

AIBC could not function without the support of its volunteer representatives.  I would like to offer a special thanks to our eight Chapter Chairs, who form our National Board, along with our National Vice President, Judy Anderson, and our Immediate Past President, Phil Turtle for their ongoing advice and support, and to Tasmania Chair, Peter Craven for his role as Convenor of this year’s National Conference.   I would also like to acknowledge the contribution of Jim McMillan for his service as Treasurer over several years and to welcome on board Akuntiri Novriani as our new National Treasurer.  A big thank you also to Company Secretary, Eric de Haas, and AIBC Member Support, Belinda Dyer who work behind the scenes to provide such capable support to the organisation.

Finally on behalf of AIBC, I wish you and your families a safe and happy festive season. 

We look forward to seeing you in 2023

Jennifer Mathews
National President

AIBC National Conference 2022

The Australia Indonesia Business Council (AIBC) was delighted to partner with the Northern Territory Government in hosting this year’s AIBC National Conference in Darwin from 2-4 November 2022. The Conference commenced with an opening reception on 2 November hosted by the Chief Minister of the Northern Territory at Parliament House and was attended by delegates and dignitaries from Australia and Indonesia. With its strategic proximity to Indonesia, Darwin was the ideal location to explore opportunities for deepening Australia’s trade and investment ties with Indonesia.

The key objective of the event was to raise awareness of the opportunities for commercial collaboration between Australia and Indonesia, especially in the context of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which entered into force in July 2020. To facilitate this collaboration, the online presentation of the Conference was opened for free to members and non-members alike, which resulted in approximately 400 participants attending the hybrid event.

A variety of speakers from a diverse array of industries were present to share their expertise with attendees. Keynote speakers included The Hon Senator Don Farrell, The Hon Nicole Manison, M. Arsjad Rasjid P.M., and Indonesia’s Ambassador to Australia, HE Dr. Siswo Pramono. The 2022 Conference also offered participants the ability to select from a variety of Breakout Sessions delivered by industry experts. These sessions provided in-depth information about specific industries including Advanced Manufacturing, Agriculture, Creative, Digital, Education, Energy, Health, Infrastructure, and Tourism. As a result, attendees were able to receive a much more in-depth overview of the landscape and opportunities that exist between Indonesia and Australia in their respective industries of interest.

AIBC is proud to report that the 2022 Conference was a resounding success, with many attendees providing positive feedback regarding the hybrid format, the addition of breakout sessions, and the quality speakers and information provided. The importance of the networking opportunities provided by the Conference for the Indonesia-Australia relationship cannot be understated. Therefore, AIBC would like to extend its warmest gratitude to the Northern Territory Government, Conference sponsors, speakers, volunteers, AIBC Members, and attendees alike. It is the contributions of all involved that made the 2022 Conference a success and ensures that 2023 will be an exciting year for cooperation between Indonesia and Australia.

For more information from the conference, please click here.

B20 Summit 13 - 14 November 2022 Bali

On 13 - 14 November, AIBC National President, Jennifer Mathews had the privilege of representing AIBC at the B20 Summit arranged by the Indonesian Chamber of Commerce and Industry (Kadin) in Bali.  Ms Mathews was joined by a number of fellow AIBC board members as part of a wider Australian delegation.

Over 3,000 business and government leaders from 69 countries were present at the two-day Summit, with more than 45,000 participants joining online. Some 103 top speakers shared their thoughts, with over 50 sideline meetings and multiple MoU signings.  Indonesia reported strong business outcomes from the B20 Summit, with the conclusion of 226 multilateral projects, valued at US$238 billion, and 140 bilateral projects, worth US$71.4 billion.  

Commencing with a spectacular opening performance and concluding with President Joko Widodo’s closing speech, Indonesia has described the B20 Summit “as setting a new benchmark for B20”. 

AIBC was delighted to see such a strong delegation from Australia, led by Prime Minister Anthony Albanese, with representatives from the Business Council of Australia and the Australian Chamber of Commerce and Industry.  The delegation included strong representation from Western Australia led by Jessica Shaw MLA, as Parliamentary Secretary to the Deputy Premier.

For AIBC, the B20 provided the opportunity to hear from internationally renowned speakers from across the B20 and from Indonesia, providing valuable insights into B20 and Indonesian priorities across the key themes of 

• Sustainable energy use and transition to Green Economy
• Investment, finance and Infrastructure
• Access to equitable healthcare and healthcare solutions
• Digital economy
• Upskilling and the Future of Work
• Women’s economic empowerment

In making its recommendations to the G20, the B20 Communiqué contained three key messages based on: “promoting innovation to unlock equitable post-crisis growth;  facilitating sustainable development, inclusive of MSMEs and vulnerable groups, and driving multi-stakeholder collaborations across developed & developing countries to build a resilient and sustainable future. “ 

These are important discussions and themes which align well with AIBC priorities for next year.  AIBC and IABC are planning further B2B collaboration in 2023 as Indonesia steps up to chair ASEAN.

By all accounts, the B20 Summit was a great success and AIBC congratulates Indonesia and Kadin on its efforts in hosting such a outstanding event.

A synopsis of the Summit can be found here.

TAS Update

The relationship between Tasmania and Indonesia grew closer last month, with the arrival of the latest Tasmanian international trade delegation in Jakarta.

Led by Hon Madeleine Ogilvie, Minister for Advanced Manufacturing and Defence Industries, and supported by AIBC Tasmania, the trade mission focused on building relationships and identifying areas of cooperation across the maritime, defence and security industries.

It explored areas of cooperation relating to maritime training and other areas of Tasmania’s maritime capability and included representatives from Tasmania’s maritime industry as well as the Australian Maritime College, Pivot Marine, LPI and Chair of AIBC Tasmania.

The visit was coordinated to align with the Royal Australian Navy’s Indo-Pacific Endeavour Task Group visit to Indonesia and its industry engagement program. The Indo-Pacific Endeavour Task Group’s industry engagement program provided a first-of-its-kind opportunity for direct engagement between Tasmanian industry, and senior Indonesian Government and industry representatives.

The delegation also paid a visit to Minister of Home Affairs of the Republic of Indonesia, Bapak Tito Karnavian to discuss future opportunities for the collaboration between Tasmania and Indonesia.

(Top Photo) Delegation networking in Jakarta with Hon Madeleine Ogilvie, Minister for Advanced Manufacturing and Defence Industries

(Bottom Photo) Delegation visiting Minister of Home Affairs of the Republic of Indonesia, Bapak Tito Karnavian with Hon Madeleine Ogilvie, Minister for Advanced Manufacturing and Defence Industries

NSW Update

AIBC NSW has had a busy few months with a number of networking functions, briefings, the National Conference and also the renewal of a Memorandum of Understanding between NSW and Jakarta.  

The AIBC NSW Branch held a networking Christmas event in November and this was an  informal occasion for members, key stakeholders and friends to meet face to face. The event was held at the showroom of Reddie Furniture in Surry Hills which showcases a magnificent range of state of the art furniture manufactured in Indonesia and sold internationally. 

We also held one of our " Ngobrol Series" at Reddie  in September and featured a discussion with Caroline and Andrew Olah, Founders and Directors of Reddie Furniture.   

We wish all members and stakeholders all the very best for the festive period and we look forward to a very active year in 2023.

NT Update

After a highly successful AIBC National Conference held in Darwin from 2-4 November, it was wonderful to see Hon Paul Kirby, Minister for Agribusiness and Fisheries lead a Northern Territory agribusiness delegation to Jakarta on 9 December 2022.  The Minister was accompanied by NTG officials and the CEO's of the Northern Territory Livestock Exporters Association (NTLEA) Mr Tom Dawkins and Northern Territory Cattlemen's Association (NTCA) , Mr Will Evans.

During the visit to Jakarta Minister Kirby held meetings with the Indonesia Australia Business Council (IABC) President Mr George Marantika, Australian Embassy Officials, Indonesian Chamber of Commerce (KADIN) and had an opportunity to visit the Tum Feedlot.

After a very busy year for the AIBC-NT , it was great to hold an end of year gathering on 15 December for members and friends.  Many thanks to Mr Petrit Abazi for enabling us to use the Northern Centre of Contemporary Art, in Parap, a great location for a function.  Our keynote speaker for the evening was Mr Tom Dawkins, CEO Northern Territory Livestock Exporters Association (NTLEA) who provided us with a presentation on the association, the cattle and buffalo being exported through the territory to Indonesia.  Many thanks to Mr Gulfan Afero and the team from the Indonesian Consulate in Darwin who have consistently supported the AIBC-NT.

Our end of year event provided the opportunity to present certificates of appreciation to our members that had volunteered during the National Conference and the Indonesian Consulate Staff that also supported the conference.  

Many thanks to Mr Didik Trimardjono (Consul - economic I), Mr Yulius Made (Consul - economic II) and Ms Mona Shana Monarizka from the Indonesian Consulate for their kind words during our gathering.

It was a lovely evening of friendship and provided the opportunity for members to network.

Photo (From Left to Right): Photo 1: Hon Paul Kirbly (centre) Minister for Agribusiness and Fisheries Northern Territory, Photo 2: Tum Feedlot, Jakarta, Photo 4: Mr Tom Dawkins - CEO Northern Territory Livestock Exporters Association (NTLEA)

QLD Update

AIBC Queensland wrapped up the year with an intimate networking event hosted by KPMG in the stunning Riparian Plaza.  Qld Chair Peter Baines provided a short exploration of the digital economy in Indonesia followed by a retrospective of the year's activities and highlights. The resumption of in person events after the Covid hiatus has been warmly welcomed and it was wonderful to look back at the memories of 2022 and see a programme packed with informative, physically-attended events, spread amongst the Blueprint Industry series and all topped off by the National Conference.

Members and friends then had an opportunity to network over drinks and canapes with the general topics steering towards holiday plans and the successful execution of B20 and G20 by the Indonesian government despite significant political consternation regarding the Russia-Ukraine conflict.

AIBC Queensland is looking forward to a busy schedule for 2023 and greatly anticipating ASEAN summit chaired by Indonesia.

SA Update

AIBC SA were pleased to  host an event in honour of visiting dignitaries  from West Java. This included Bapak Lufiandi,  Secretary of Planning and Development and Yoga Miftahul Ihsan from the International Cooperation Office, both representing the West Java Government.

The event was sponsored and led  by Dr Daniel Gregg from Heuris Pty Ltd and supported by Harry Wardana from Merantau Pty Ltd, both AIBC committee members.

The speakers, Dr Daniel Gregg and Harry Wardana delivered presentations on  coffee propagation and importation.

Mr Gregg provided a detailed vision on supply chain innovation and sustainable development for coffee growing and exports.

Mr Wardana provided  an equally engaging submission about creating relationships and international trade.

Bapak Lufiandi delivered  a presentation on behalf of the West Java Government.
Other guests included representatives from DFAT, DT Global International, Study Adelaide and Indonesian business owners in Adelaide.

It was an enjoyable and productive event with a genuine sense of consolidation for future endeavors between the two business communities.

VIC Update

2022 has certainly been the year that the Australia – Indonesia relationship hit the map for all the right reasons.  Through the National Industry Series, including the Food & Agriculture event in Melbourne, followed by successful B20 related visits and the fantastic AIBC Conference in Darwin, AIBC have built a springboard for growth in the business relationship into 2023 and beyond.

AIBC Victoria congratulate the organising committee and fantastic group of volunteers in the AIBC NT Branch for pulling off the conference in early November.  We also note the announcement of a new AIBC Industry group focussing on Investment and Infrastructure, to be led by Victorian committee member Peter McGregor.  AIBC urge all members around the country with interest in this space to get behind Peter and this great new initiative.

A flurry of end of year activity has included attendance at an Ambassadorial lunch at the National Press Club in Canberra hosted by H.E. Ambassador Siswo Pramono.  On the same day AIBC Victoria hosted a working lunch for a visiting delegation of the Bandung City Government.  To end the year we were grateful to Dairy Australia for providing a venue for a members gathering & social drinks.  Those that attended greatly enjoyed reengaging in Indonesia business focussed discussion.

WA Update

The AIBC Western Australia chapter has enjoyed a cracking pace of post-pandemic re-engagement opportunities over the past few months with members and NGO friends, and with state government, national government and Indonesia-side colleagues.  To raise ambition for reconnecting with Indonesia, encourage P2P and B2B travel, and profile the IA-CEPA and two way trade and investment opportunities, AIBC WA has very deliberately taken a collaborative approach to working with other Indonesia-related associations in Western Australia over the past 6 months.  Sometimes we have led initiatives, sometimes supported through participation, and sometimes only lent brand support.  This culminated in AIBC WA's participation in the B20 Indonesia in November 2022, and submission to the WA Parliament's inquiry into the state's trade and investment relationship with Indonesia.

The broad themes of the B20 Indonesia were:

1. Sustainable energy transition
2. Global health; and
3. Digital connectivitiy.

In support of diversifying the Western Australian economy and super-charging energy transition supply chains into Indonesia and ASEAN markets, AIBC WA has publicly said our goal is to lift two way state trade and investment between Western Australia and Indonesia from 11 to inside the top 5 on the leaderboard, by 2030.  We can flag with our members that we have some more focused, and very exciting, engagement opportunities in the works on these broad themes for the first half of 2023 - please reach out if you'd like to be involved.

Our post-pandemic activities have included:

• participating in the in-bound DFAT coordinated visit of East Java Deputy Governor Pak Emil Dardak, including a visit to Fremantle Port's Digital Supply Chain hub
• collaborating to host the inbound KADIN (Indonesia Chamber of Commerce) and IABC B20 Indonesia delegation to Perth on Friday 5th August, with the Indonesian Consulate, City of Perth, DJTSI, Chamber of Commerce and Industry WA, hosting Indonesian Ambassador Dr Siswo Pramono
• holding a digital supply chain roundtable discussion with the in-bound B20 Indonesia and KADIN delegation, hosted by AIBC member Deloittes, including Pak Tony Wenas, CEO of Freeport, Pak George Iwan Marantika Chair of the Indonesia Australia Business Council and KADIN ANZ representative
• participating in the 40th celebrations of the DFAT funded Australia Indonesia Youth Exchange Program AIYEP (I'm an alumna of AIYEP and what a positive impact it has had on my life!)
• supporting the magnificent Indonesian cultural day at the Perth Museum featuring multiple dance and music performances and the wonderful Yogyakarta Wayang Kulit, organised by our friend Indonesian Consul-General Ibu Listi Operananta
• participating in plenary and breakout discussions in the WA state government's vibrant Indonesia Connect event coordinated by DJTSI on 21st October which attracted over 250 stakeholders
• curating and hosting the energy transition discussion with AIBC members FFI, SunCable and the Indonesian Investment Board (BKPM) at the Australia Indonesia Business Council's National Conference in Darwin in early November 2022; WA based senior executives from Fortescue Futures Industry Andrew Forrest and Mark Barnaba, as well as SunCable executives subsequently participated in the B20 Indonesia
• holding a joint planning discussion for 2023 in Darwin with the Indonesia Australia Business Council Pak George Iwan Marantika
• five national AIBC board members (including myself and WA based AIBC National President Jennifer Matthews) participating in the B20 Indonesia
• being part of a fantastic "Team WA" delegation to the B20 Indonesia which included my fellow AIBC WA committee member Honny Palayukan, the Hon Jess Shaw MLA, Parliamentary Secretary to the Deputy Premier Roger Cook, Minister for State Development, Jobs and Trade; Hydrogen Industry; Tourism; Science, WA's ASEAN Trade & Investment Commissioner Krista Dunstan, colleagues from DJTSI's WA Trade & Investment Office Jakarta, Deloittes, Village Energy, RedPiranha, Australia Indonesia Institute
• holding planning discussions with IABC East Java colleagues for engagement in 2023
• supporting the City of Cockburn to host an Indonesia Digital Exchange briefing
• supporting the Perth Indonesian Chamber of Commerce and Bali Tourism Board to host an in-bound Bali Regional Banking Consultative delegation led by the
• (central) Bank Indonesia Bali Director Pak Trisno Nugroho

So from the AIBC WA Committee myself, Bryce Green, Renate Chen, Honny Palayukan and Tiffani Makati we wish you a safe and happy festive season.

We are offline in January 2023 but look forward to being in touch with you in February 2023.

Best regards and Salam Hangat,
Larissa Taylor AIBC WA Chair
wachair@aibc.com.au
laramarc@iinet.net.au

New AIBC Investment, Finance and Infrastructure Industry Group

AIBC is delighted to also announce the establishment of a new AIBC Industry Group, focusing on Investment, Finance and Infrastructure to be chaired by CEO of TRUE Infrastructure, Peter McGregor.  The new Industry Group will cover the full spectrum of investment opportunities between Australia and Indonesia, including the priority sectors of finance and infrastructure.

As noted in DFATs ‘Blueprint for Trade and Investment with Indonesia’, ‘Infrastructure is a key area where Indonesia is seeking foreign investment. … Increasing flows of infrastructure financing from foreign investors is key to managing congestion as the country’s population grows and improving the efficiency of its transport facilities to attract new manufacturing investment. Infrastructure will also be crucial to improving living standards and making the most of increasing urbanisation.’

This will ensure that beyond goods and services, we capture the full range of opportunities in respect of the flow of capital and funding between Australia and Indonesia. This is at a time when industry is actively looking to diversify its offshore markets.

This is a timely initiative and will build on the momentum of the recent visit to Indonesia by a major delegation of Australian superannuation and fund managers.

The new Industry Group will complement AIBC’s three existing Industry Groups on Agribusiness and Food, Healthcare and Minerals and Energy – providing AIBC membership and industry with specific information and support on priority sectors of opportunity.

New AIBC Education and Training Industry Group

AIBC has agreed to establish an Education and Training Industry Group. This will provide a platform for industry stakeholders from both Australia and Indonesia to engage in discussion on the challenges and opportunities for partnership development. Education and Training underpinns many other industry sectors within AIBC and is a top three export industry for Australia. Indonesia is one of our most important education sector global partners.

The operating environment in Indonesia continues to present some challenges, despite the significant improvements provided by the implementation of IA-CEPA.

Key success factors include finding the right partner, planning with purpose, engaging with suitable stakeholders, having a realistic price point and committing with patience for an initial five year investment.
Guided by these and other long term partnering principles and with quality assurance  a key priority, the education and training sector offers opportunities for successful long term investment.

Inaugural convenor of the Education and Training Industry  Group will be former AIBC  Board Member, Michael Fay who is a Director at ASEAN Focus Group. Michael has over 35 years experience of international education between Australia and Indonesia.
AIBC looks forward to inviting education and training sector stakeholders to join us on this new initiative.

Harmonisation of Health and Nursing Standards - A Key to Indonesia Australia Health Partnerships

Indonesia and Australia are ramping up ambitious health sector partnerships across private hospital investment, medtech and digital health which are all areas where Australia has global best practice credentials. Ramsay Healthcare, Australia’s largest private hospital provider, has a global footprint and over 20 years’ experience of the Indonesian and Malaysian markets for healthcare delivery. More recently Aspen Medical has announced plans to set up a network of hospitals and health centres with local partners in West Java.

The AIBC National Conference held in early November 2022 provided a platform to discuss both the health sector as well as education and skills training related to nurse training and medtech. We were delighted to host a panel discussion sponsored by Charles Darwin University  featuring research outcomes from the Katalis funded “Comparative Assessment of Nursing Standards in Indonesia and Australia”. The study was led by Latrobe University Victoria in partnership with Universitas Hasanuddin Makassar, Universitas Airlangga Surabaya and Universitas Pelita Harapan. The Head of Nursing Management at UNHAS, Prof Rini Rachmawaty, one of the field researchers and study partners, provided an excellent overview of the research outcomes. Rini completed her Masters in Nursing Management at the University of Technology (UTS) Sydney.

The study included a gap analysis of education, registration and practice standards and used interviews with policy makers, clinicians, students, health administrators, faculty deans and academics to measure benchmarking between the two countries. For Australian investors, it is notable that registration of internationally qualified nurses can be challenging in both countries, with minimal numbers of Indonesian nurses working in Australia. This presents opportunities for closer collaboration between nursing peak bodies and universities in both countries as well as greater alignment in curricula. The importance of English language competency was also highlighted.

In addition to nursing partnerships, the Education and Skills Panel also focused on the work being done by Swisstech Analytics, an Australian company partnering with global health company Philips, Charles Darwin University and the Northern Territory Government in the healthcare ecosystem including in teleradiology, telehealth, patient monitoring, pathology, informatics and skills transfer. This work is being led by another Australian alumni, Ms Afifa Loutfie, originally from Lampung South Sumatra with education links to both South Australia and NSW. Swisstech plans to roll out its skills training program with Indonesian health care workers, both in-country and in Australia in 2023.

Michael Fay
Director and Head of Education Services ASEAN Focus Group Pty Ltd
Convenor and Moderator, Education and Skills Training Panel, AIBC Conference Darwin November 2022

Education and Skills Training Panellists at AIBC National Conference 2022

From left: Afifa Loutfie, Dr Rini Rachmawati, Michael Fay, Clarice Campbell( Katalis), George Marantika (IABC), Scott Bowman (Vice Chancellor CDU)

Indoview

IIPC Newsletter

The Indonesia Investment Promotion Centre (IIPC) has published its October-November newsletter with updates on Indonesia's investment climate and what's happening at IIPC Sydney.

Read the newsletter here, where previous issues of the newsletter are also available.

Renewable Energy Pricing & Transition

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the long-awaited Presidential Regulation on the pricing of electricity generated from renewable energy resources and related matters.

"After seemingly endless and mostly unexplained delays, stretching over several years, the Government has finally issued the long-awaited Presidential Regulation on the pricing of electricity generated from renewable energy resources and related matters including renewable energy transition.

The new Presidential Regulation improves the “economics” of developing Indonesia’s renewable energy resources. It remains to be seen, however, whether or not the new Presidential Regulation will be sufficient, by itself, to spur meaningful development of Indonesia’s renewable energy resources. It is also questionable whether or not the new Presidential Regulation will do much to “fast track” the phasing out of coal fired power plants.”

To read this article in full, click here.

AIBC member Austin Engineering doubles the size of its Indonesia plant

To read this article in full click here.

Cooperation in Economic Management

The Indonesian and Australian governments have extended their cooperation in economic management by signing the Australia-Indonesia Partnership for Economic Development (Prospera) Exchange of Letters, which will be effective until 2026.

To read the full article click here.