Jennifer Mathews
National President

President's Column

Across our membership, AIBC is continuing to see strong interest in engaging with Indonesia, and in building trade and business connections with our nearest neighbour.

Over the past month, AIBC partnered with DFAT and Austrade in hosting the Australian Ambassador to Indonesia, HE Ms Penny Williams, at a series of in person networking events held around Australia.  In presenting “A View from Jakarta” Ambassador Williams highlighted that Indonesia is very much open for business, with opportunities for deepening two-way trade and investment links across the Healthcare, Education and Training, Resources and Energy and Agribusiness sectors.  

Earlier this year, AIBC was honoured to partner with the Consulate-General of the Republic of Indonesia in Perth in hosting HE Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, for a roundtable discussion on collaboration in the critical minerals, lithium and electric vehicle value chain, with representatives of the Indonesian Coordinating Ministry for Maritime Affairs and Investment, MIND ID (Mining Industry Indonesia), the Ministry of State-Owned Enterprises, and Indonesian Battery Corporation, as well as Geoscience Australia and Australian representatives from the critical minerals and lithium industry.  As Indonesia seeks to position itself as a manufacturing hub for the production of electric vehicles, there is real opportunity for Australia and Indonesia to form strategic partnerships in this area.

Through May this year AIBC will be partnering with the Indonesian Government in hosting a national series of events as part of the “ASEAN Business and Investment Summit and ASEAN Indo-Pacific Infrastructure Forum (AIPIF) Roadshow”.  As chair of ASEAN in 2023, Indonesia has announced its key themes of health architecture, food security, energy security and financial stability – with a focus on post covid recovery and rebuilding, the digital economy and financial sustainability.  These Business Forums will provide 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 ASEAN Business Summit in Bali in September 2023. Placeholders are being sent around shortly with more information so you can mark your diaries. Note, these events will give a priority to members.

As part of our advocacy efforts, AIBC has been actively engaging with government on key issues of interest to members, including the IA-CEPA Skills Development Exchange and on much needed reforms to visa requirements for Indonesians visiting Australia.  AIBC also provided input into the Government’s SEA Economic Strategy on opportunities and challenges across key sectors.

Throughout the year, AIBC’s State Chapters will be arranging a series 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; Education, Skills and Training and Investment, Finance and Infrastructure) are also active, providing a valuable industry sector focus for our membership and stakeholders.  

AIBC is also pleased to welcome Rosemary Guyatt as AIBC’s new Executive Officer.  Rosemary’s strong interest in Indonesia combined with her extensive experience in membership engagement, will be very relevant to the growth and future direction of AIBC. 

Finally, AIBC is a voluntary organisation which relies on the support of its members.  If you are not already a member, we encourage you to join. 

We look forward to seeing you at our many events throughout 2023. 

Jennifer Mathews
National President

ACT Update

As the Vice President of AIBC, Judy Anderson was delighted to participate in the Canberra event hosted by the Australia Indonesia Youth Association. The guest speaker was Canberra’s own highly regarded Elena Williams, the Director of Indonesia-Australia Consulting, an international education and development practitioner, and PhD candidate at the ANU. Her important research examines the impact of Australian Government-funded study abroad programs to Indonesia, such as The New Colombo Plan, on Australian students and Indonesian 'host' communities.

Judy heard of the amazing connections between Australia and Indonesia’s students and for their early careers, the opportunities to leverage the experience and connections into working life and how important they are for building an Indo-Pacific career. The passion and commitment of the connections of our younger generation bodes Australia and Indonesia well for our countries to grow and develop together.

Mimi D’Orsogna has advised that she will shortly be stepping down as ACT Chair  and Bradley Rogers has kindly agreed to step into the role as Acting Chair.  Brad has been involved in AIBC since mid- 2022 and has more recently served as the ACT Treasurer.  So, a big welcome to you Brad!

On behalf of AIBC, a very big thank you to Mimi for her wonderful contribution to AIBC through her leadership of the ACT Chapter.

NSW Update

AIBC NSW has hosted a number of networking events to start the year, which have been informative as well as valuable opportunities for members to engage and discuss issues of mutual interest. These have included our quarterly informal networking drinks held in the city in Sydney in February which was attended by a number of new members as well as representatives from IIPC , ITPC and the Indonesian Consulate.

An updated MOU between NSW and Jakarta was signed early in the year and this strengthens the 28 year Sister State Province agreement NSW has with Jakarta. This event featured a conversation with Andrew Parker, Senior Trade and Investment Commissioner, ASEAN, Investment NSW and highlighted new opportunities and linkages between Indonesia and NSW.

In March we held a networking event hosted by Austrade at their Sydney offices with the Australian Ambassador to Indonesia, Her Excellency Ms Penny Williams PSM. The informal networking event also included a question-and-answer session with the Ambassador and Sally Deane, Senior Trade Commissioner, Austrade Jakarta. This was a very well attended event and included an opportunity to meet with the Ambassador and Sally.

Di Robinson

NSW Chair

L – R Di Robinson (AIBC Chair NSW ), Ambassador Williams – Ambassador to Indonesia, Lydia Santoso (Deputy Chair AIBC NSW) Don Turner (Committee AIBC NSW) Crispin Conroy, State Director, NSW Office of Department of Foreign Affairs and Trade

NT Update

On 18 April 2023,  AIBC-NT hosted a Buka Puasa (break fasting) with members and friends gathering. Our special guests for the evening were Mr Gulfan Afero, Indonesian Consul and his consulate team along with our keynote speaker for the evening ,Ms Kathryn Stenson, Chief Executive Officer - GTNT Group who provided an update on GTNT's workforce pilot project in Bali. Mr Afero  provided an update on the upcoming visit to Darwin by the H.E Dr Siswo Pramono and the Indonesian Business Delegation.

We were delighted to have the  opportunity to meet with Mr Donald Mortimer and Mr Drew Boekel, the new Director and Assistant Director from the Department of Foreign Affairs and Trade in the NT.

Great to see so many members and friends of the AIBC-NT including NT Chamber of Commerce, Department of Industry, Tourism and Trade, Migration NT, Tourism Top End, NT Farmers, NT Livestock Exporters Association, Charles Darwin University and many other stakeholders network throughout the evening.

Kate Heelan

NT Chair

QLD Update

An Education and Training symposium was held on 15 February as a joint initiative between TAFE Queensland and AIBC Queensland. We explored the explosive growth in Indonesian demand for Australian education products and the immense opportunities this presents the Australian education industry.

A case study of a successful business, an exploration of emergent business opportunities within the sector by Ben Giles, Trade Commissioner for Trade Investment Queensland and an expert panel discussion preceded networking over canapés and drinks.

The panellists were:

Professor Colin Brown - Adjunct Professor at Griffith Asia Institute

Ricky Fan - General Manager of the Union Institute of Language

Russell McKay – Executive Director International of TAFE QLD International Education

Prof. Pierre Viljoen - President Director of Central Queensland University Indonesian Operations

The event was well attended and exceedingly well received. The explosive growth in demand for Educational Services in Indonesia is primarily being driven by the country's young demographic with a median age of 28.6 years (2016 figure) and the increasingly large middle class. While the market is considerably price sensitive the opportunities for scaling and bright economic future provide widespread opportunity for growth. With the standardisation of qualifications within ASEAN nations on the ASEAN agenda we are sure to see increasing structural support for Education Services in the region and in Indonesia in particular.

Peter Baines

Qld Chair

Martin Lock, Acting Executive Director- International Engagement, TAFE Queensland

SA Update

AIBC SA recently hosted a round table discussion with Sally Deane from Austrade Jakarta.

We also welcomed Jill Collins the newly installed State Director of DFAT and Angus Acton-Cavanough also from DFAT, a long-term supporter of AIBC SA.

David West spoke of his role as AIBC Chair SA and the support of the committee, all of whom exercise individual relationships and involved in projects and investments in Indonesia.

Discussion included the topic of building manufacturing relationships and forging quality control agreements with Indonesian import and manufacturing business and noted that Indonesia is now the leading importer of aluminium extruded product, outstripping China.

Sally spoke of her long experience as a Senior Trade and Investment Commissioner, and of the growing relationship between Australia and Indonesia and her hope that this growth continues.

The AIBC committee members present included:

Dr. Daniel Gregg and team members from Heuris Pty Ltd who described their agricultural and environmental policy with a focus on supply chain innovation, in particular, assisting small holding businesses or small village supply chains to achieve sustainable development goals in their local food systems, which has been successful  in other developing countries to achieve more equitable and sustainable supply chains.

Amalia Sosrodiredjo, Harry Wardana and Dr. Priyambudi Sulistiyanto, spoke of sustainable tourism investment, doing business in Australia and education respectively and the importance student engagement. AIBC offers a student membership which could provide a pathway for young people to become involved in AIBC directly.

Over-all, a rewarding get-together with Sally and Jill and I hope beneficial to all.

David West

SA Chair

VIC Update

With the summer holidays out of the way, it was all about Indonesia in March.

First, we hosted a visit by the former Governor of Jakarta and Presidential hopeful, Pak Anies Baswedan.  Pak Anies was a very engaging and forthright speaker who wasn’t afraid to discuss some big ticket issues at a very well attended event that was co-hosted by the Asia Society and moderated by Helen Brown from Biznis Asia.  What a way to kick off the year!

Shortly after we hosted a business forum with a delegation from South Sulawesi which was led by the Governor, Pak Andi Sudirman Sulaiman and included several state officials and Regents.  A morning event was hosted by Monash University in conjunction with The Australia-Indonesia Centre, very ably coordinated by AIBC Victoria Committee member, Marlene Millott.

On March 17, AIBC Victoria hosted a Breakfast forum with Australia’s Ambassador to Indonesia, HE Penny Williams and Trade Commissioner Rod Commerford.  This was an exceptionally successful event with all guests having the opportunity to listen to and question the Ambassador in a wonderful setting which was supported by Global Victoria.   

We look forward to a large Indonesian delegation in May for a national ASEAN roadshow, including Melbourne, in support of Indonesia hosting the ASEAN Forum later in the year.  I encourage all members to look out for event information and attend if you can.

Garry Embleton

VIC Chair

AIBC Victoria committee members Geoff Gold, Garry Embleton, HE Penny Williams Australian Ambassador to Indonesia, Rod Commerford, Trade Commissioner

TAS update

On 14th March 2023, AIBC Tasmania was honoured and pleased to organise and host a networking event for the visit to Hobart of The Australian Ambassador to the Republic of Indonesia, Her Excellency Ms Penny Williams PSM.
The event was attended by AIBC members and, Tasmanian business and government executive guests.  Penny delivered an insightful keynote about the growing business opportunities for Tasmanian businesses in Indonesia, and shared many warm stories of about her experience as Head of Australia's diplomatic mission. Particularly around Prime Minister Albanese’s visit to Indonesia in June 2022 where he was accompanied by a delegation of Australian CEOs, and in November 2022, where he was key note speaker at the B20 and G20 in Bali.

Austrade Jakarta based Trade and Investment Commissioner Rod Commerford also provided a valuable snapshot of Indonesia’s growing economy, highlighting the growth sector for future trade and investment.

Following the presentation, AIBC TASChair conducted a 45min fireside chat where the members and guests were able to ask questions and offer commentary.

The evening concluded with refreshments and an opportunity for everyone to meet both Penny and Rod in person, setting the scene for further dialogue and activities which includes a planned Tasmanian trade delegation visit to Jakarta in June 2023.

HE Penny Williams PSM, The Australian Ambassador to the Republic of Indonesia delivering her keynote speech.

WA Update

Larissa Taylor

WA Chair
 

Food and Agriculture industry Group

Through close collaboration with Professor Edward Buckingham at Monash Business School and his great interest in AIBC and all things relating to business with Indonesia, I am pleased to advise of a unique opportunity for your business to collaborate and have valuable research work done, totally free of charge.   Please note below and I encourage you to think about project work you would like completed.  It could be the difference between launching that new business idea you have and letting it wither on the vine.

If you are in the food, beverage or agribusiness sector and would like to explore export opportunities to Indonesia, the Monash Business School MBA cohort is available to produce a report for you on a pro bono basis.  The soon to graduate MBAs will start their projects in groups (five MBAs per group) at the end of July and will visit Indonesia for a week in September to answer questions that will establish export business models for the Indonesian market.  The final presentation will be made on Friday October 27th.    While there is no financial investment for you, we do expect a representative of your company to participate in weekly steering committee meetings with your group for an hour via zoom.   To participate you should write to edward.buckingham@monash.edu

Gary Embleton

Industry Group Chair

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.

AIBC Education and Training Industry Group

AIBC has  established 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 is 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.

Indoview

Migration Review and Visa Reform 

The Minister for Home Affairs Claire O’Neil spoke at the National Press Club last week and released the final report of the Migration System Review as well as an outline of a future Migration Strategy for consultation which is focussed on redesigning the system to help Australia get the skills it needs.  

The Minister announced the lifting the Temporary Skilled Migration Income Threshold from $53,900 to $70,000 a year and that by the end of 2023, all temporary skilled workers will have a pathway to permanent residency. 

The temporary skilled migration program will be restructured with three new pathways: 

A fast, simple route for specialised, highly skilled workers to drive innovation in the economy, and help build the jobs of the future.  

A mainstream temporary skilled pathway with evidence-based assessments of skills needs and an increased temporary skilled migration income threshold.  

Pathways for workers in key sectors, such as care.  

The skilled migrant points test will be tightened with a greater focus on future skills needs. A new area in the Home Affairs Department will work with Jobs and Skills Australia to identify skills shortages and future skills needs in Australia’s economy, moving away from the skills lists which are seen as outdated.   

The visa application system will be simplified with the aim of reducing the number of visa categories, the level of complexity and red tape.  

There will be greater collaboration with the states and territories planning for population changes, with the recent National Cabinet meeting discussing how to work together on the changes.  

The Government wants to ensure that high-performing international students with the skills the country needs are given the chance to stay in Australia through simpler, faster pathways. The Government will also be tightening the requirements to ensure that international students are actually here to study.  

There will be improved post-arrival monitoring and enforcement of wages and conditions to detect and prevent exploitation as well as better regulation of migration agents.  

Consultation will occur over May and June with the final strategy to be released later in 2023.  Issues relating to the family migration program are being considered separately while the humanitarian and settlement programs are not included in the draft migration strategy. 

Note: The Review and the Strategy do not mention migration from particular countries, so there are no indications of prioritising source countries for bringing people into Australia. 

With visa issues raised by members, the AIBC is monitoring these changes and our priority continues to be engaging with both the Australian and Indonesian Governments on ways people can move more seamlessly to gain skills and experiences that advance opportunities for our countries.

Visa reform

AIBC congratulates the Indonesia Institute on its advocacy in highlighting the need to reform visa requirements for Indonesians visiting Australia.   A copy of the Institute’s position paper on this issue can be seen here.

Power Plants and Carbon Trading – New Rules

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at carbon trading, in respect of power plants, as a means of helping to control greenhouse gas emissions in the energy sector in Indonesia.

"Power plants, using fossil fuels, are a significant source of greenhouse gas emissions in Indonesia.

Given the above, it is understandable that the Government has decided to prioritize the use of carbon trading, in respect of power plants, as a means of helping to control greenhouse gas emissions in the energy sector. To this end, the Minister of Energy & Mineral Resources has recently issued a regulation on the use of carbon trading within the power plant sub-sector.”

To read this article in full, click here.

Nuclear Minerals Mining

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at how the Indonesian Government is moving ahead with the promotion of nuclear power as a form of “new energy”.

"In late December 2022, a new government regulation was issued that provides for a host of measures intended to ensure the safety and security of so-called ‘nuclear minerals mining’, something that encompasses the mining, processing and storage of radioactive minerals and associated products.

International nuclear power industry observers and the Indonesian public may, however, take some convincing that the Government is really ‘up to the job’ of ensuring the safety and security of the mining, processing and storage of radioactive minerals and associated products in light of its less than stellar ‘track record’ in more traditional areas of mining such as metal minerals and coal as well as in connection with other high-risk activities.”

To read this article in full, click here.