Jennifer Mathews
National President

President's Column

Dear AIBC Members and Friends,

I am pleased to present our first newsletter for 2022.

With the opening of our international borders, AIBC was delighted to kick off the year with an online discussion with the Minister for Trade, Tourism and Investment, the Hon Dan Tehan, who shared his insights about what this means for Australian businesses looking to re-engage with Indonesia.

The Hon Dan Tehan MP
Minister for Trade, Tourism and Investment

As this year’s host of G20, Indonesia is undergoing transformational change, offering Australian industry opportunities for partnering with Indonesia across a range of industry sectors.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), provides a platform for Australia to reactivate and deepen trade and investment relations with its nearest neighbour.

“This Agreement will unlock the vast potential of the economic partnership and support a shared recovery”; “The relationship between Indonesia and Australia will be more important than ever” - Josh Frydenburg, February 2022.

The AIBC was pleased to hear Minister Tehan confirm that the relationship between our two countries was a high priority for Australia, highlighting a number of areas for potential collaboration: health, energy, digital technology, food and agriculture as well as logistics and supply chains.

I’m pleased to say that AIBC has a full program of events planned for 2022 – to ensure that our AIBC membership, and Australian industry more broadly, is well informed, and able to connect into these opportunities.

For our next event on 21 March, AIBC is partnering with IABC to host a national webinar entltled “Indonesia: Its time to take a fresh look”, featuring the Australian Ambassador to Indonesia, HE Penny Williams PSM, the Indonesian Ambassador to Australia, HE Dr Siswo Pramono and a panel of distinguished speakers (Ms Shinta Kamdani, CEO Sintesa Group & Chair of B20 Indonesia 2022, Paul Bartlett, Director of IA-CEPA (ECP) Katalis, Andrew Ozga, Partner of Ernst & Young). They will share their insights on why now is the time to take a fresh and closer look at Indonesia.

Looking ahead, AIBC will join DFAT in staging a national roadshow of industry events from April through to July this year.  These will be held as hybrid events  focussing on the key industry sectors of agriculture and food, education and training, resources and energy, health and aged care, and the digital economy – all areas where Australian capability aligns well with Indonesia priorities.

AIBC’s State Chapters across the country are also planning a range of events, aimed at providing up-to-date market intelligence and the opportunity to network with members and friends.

AIBC’s Industry Groups (Healthcare; Minerals, Energy and industry Group; Agriculture and Food) have also been active and provide a valuable sectoral focus for our membership and stakeholders.

The AIBC is also pleased to announce that the AIBC National Conference 2022 will be taking place in Darwin this year from 2-4 November.  Please save these dates and we will keep you posted as arrangements for the national conference firm up.

All in all we are in for a busy and exciting year!  We look forward to seeing you at future AIBC events.

Jennifer Mathews
National President

NT Update

On 16 February 2022 the AIBC NT held a members meeting followed by a sunset gathering at the Darwin Sailing Club. 

During the meeting AIBC NT Chair, Kate Heelan along with Dr Danial Kelly, Mr Max Stretton  Mr David McKenzie and Mrs Desak Kelly, being Committee Members had the opportunity to brief members and the Consulate on the Connect Darwin Sector Session series of events.  The team also briefed the group on the AIBC National Conference which will be held in Darwin in the first week of November.

We were delighted to hear from our guest speaker for the evening, Mr Gulfan Afreo, the Indonesian Consul in Darwin about the upcoming visit to Darwin by the new Indonesian Ambassador to Australia.  Mr Afreo also discussed the G20 meeting scheduled to be held in Bali in late October 2022 and the opportunities for business seminars and business matching activities during the Connect Darwin Sector Sessions Series and the National Conference.

On 18 February 2022, AIBC NT Chair, Kate Heelan and Committee Member Dr David McKenzie represented the AIBC NT at Charles Darwin University (CDU) forum on "Understanding Indonesia: Movers and Shakers" facilitied by Dr Nathan Franklin.

It was great to hear from the Vice Chancellor of CDU Professor Scott Bowman, Mr Luke Gosling OAM MP, Member for Solomon and Indonesian Consul Mr Gulfan Afreo give opening speeches and discuss the long standing bilateral relationship between  Australia and Indonesia.

During the welcome speeches each presenter also discussed the longstanding relationship both culturally and economically  between  Indonesia (particularly Eastern Indonesia) and the Northern Territory.   IA-CEPA was also discussed as a foundation for growing opportunities for the NT in the Vocational and Higher Educational programs.

The forum focused on a number of themes including: : Politics, Religion and Radicalism; Democratic Institutions and State Ideology and  International Relations and Regional Security.

Academics from both CDU and Indonesia came together for the highly successful day long program.

L - R Mr Luke Gosling OAM, MP - Member for Solomon, Professor Scott Bowman and Indonesian Consul Mr Gulfan Afreo

NSW Update

AIBC NSW has been active meeting with key partners and stakeholders, including Investment NSW, IIPC, BKPM and the Indonesian Consulate.

The NSW chapter also has a range of events planned over the coming months including a networking event and update on Indonesia's Omnibus Law on 31 March, in partnership with IIPC, BKPM and the Indonesian consulate as well as an event partnering with Macquarie University as part of an innovation series at the end of May.  

NSW will be staging another of its highly successful Ngobrol series with a further event focussing on investment featuring Investment NSW and NSW Senior Trade Commissioner to ASEAN, Andrew Parker.

In July, NSW will host an event on the digital economy as part of AIBC / DFAT National Industry Series.

QLD Update

2021 End of Year Business Luncheon

Our final event for 2021 was held on 9 December last year.  This was in the format of a business luncheon, which was catered by Sendok Garpu, a well-known Indonesian restaurant in Brisbane.  CQ University was the venue host at their campus in the CBD.

The meeting was addressed via Zoom by the newly appointed Consul General of the Republic of Indonesia for New South Wales, Queensland and South Australia, Mr Vedi Kurnia Buana.   The more than 40 members and guests who attended enjoyed a time of networking and fellowship, while lunching on a delicious feast.

Attendees watching the virtual address from Pak Buana

The honoured guests at the event included Ms Melissa O’Rourke (Director Queensland State Office, Department of Foreign Affairs and Trade), Ms Toni Brownie. (General Manager – International Operations, Trade & Investment Queensland), Ms Diana Gueorguieva (Chamber of Commerce & Industry Queensland) and Mr Alastair Dawson. (Vice President Global Development – Central Queensland University) who provided the venue for this event.

Lunch update with TIQ Commissioner to Indonesia

We opened our 2022 programme in Queensland with an update from Queensland’s Trade and Investment Commissioner to Indonesia, Mr Ben Giles.  Ben is based in Jakarta, and this was his first opportunity to visit back to Australia since the outbreak of the pandemic.  He discussed the status and opportunities on trade and investment between Indonesia and Queensland.

Trade and Investment Queensland hosted the event in their offices at 1 William Street, and also kindly provided a healthy lunch.  Among the more than 30 registered attendees for the event, the honoured guests at the event included Ms Melissa O’Rourke. (Director Queensland State Office, Department of Foreign Affairs and Trade), Ms Liz King. (Director Agribusiness Policy and Industry Development, QLD Department of Agriculture and Fisheries), Councillor Jon Raven. (Deputy Mayor, Logan City Council) and Councillor Miriam Stemp (Logan City Council).

Ben Giles (Left) with David Widjaja, Vice Chair of AIBC QLD

TAS Update

Consul General visits Hobart and Launceston

The Indonesian Consul General, HE Kuncoro Waseso, made a visit to Hobart and Tasmania on 16th and 17th February.

During the visit he met with Tasmanian government representatives in addition to visiting the University of Tasmania, Institute of Marine and Antarctic Studies, and the Australian Maritime College.

AIBC Tasmania Chair Peter Craven, joined the Consul General for a business networking event in Launceston with Deputy Premier Tasmania Hon Jeremy Rockliff, and Minister for Trade Tasmania Hon Guy Barnett to discuss emerging opportunities for businesses in the State to connect with Indonesia. AIBC members from Launceston were also invited to meet with the Consul General and his team.

AIBC Tasmania members in Launceston meet with Consul General of Indonesia

L-R  Peter Craven AIBC Tas Chair, HE Consul General of Indonesia Kuncoro Waseso, Bruce Williams AIBC Tas Deputy Chair, Muniroh Rahim Indonesian Consul, Ratih Kombonglangi Indonesian Vice Consul

VIC Update

On December 23 we enjoyed lunch with the new Indonesian Ambassador, H.E. Dr. Siswo Pramono, hosted by the Consul General, Pak Kuncoro Waseso, at the Melbourne Consulate.  The Ambassador gave a wonderful overview of his priorities for his term in Australia and we engaged in excellent dialogue about the Australia / Indonesia relationship and business opportunities.

AIBC Victoria will be announcing a full schedule of events and member engagement in the coming days.

WA Update

AIBC WA Chapter – Fremantle Port Digital Supply Chain Intelligence Hub

Member and Friends Event, Monday 28th February 2022

In preparation for the Western Australian economy opening up from COVID-19 restrictions to national and international borders at the beginning of March, on Monday 28th February 2022 the AIBC WA Chapter welcomed Larissa Taylor in her first event as the new state chapter chair and ran a members and friends discussion featuring a briefing from Fremantle Port’s Digital Leader Logistics Solutions Mr Dominique Thatcher.  Fremantle Port is owned by the Western Australian state government and has recently commenced an investment into building a ‘Digital Avatar’ for the port or Smart Port 4.0, including a digital intermodal supply chain logistics intelligence hub. 

Currently in a beta or prototype version, Fremantle Port’s aspiration is to provide digitized intermodal supply chain intelligence services on a user-needs basis within the next 12 months, including but not limited to a live dashboard Fremantle Port Container Price Index & Movements, digitized real time intermodal traffic in and out of the port, a digital avatar (live) for incoming, outgoing and ships at berth, available crane capacity, loading schedules.  Dom’s experience in intermodal logistics and talent for creating digital transparency and insight was on full display to the 45+ physical and virtual participants in the event.  Indonesia’s various ports including Tanjung Priok in West Java and Tanjung Perak in East Java and their shipping and intermodal customers are valued trading with Fremantle Port and the AIBC WA network is keen to promote further digital supply chain logistics collaboration with Indonesia’s new Fremantle Ports Digital Supply Chain Hub.

AIBC WA was honoured to be joined at the event by Indonesia’s Consul-General to Western Australia Ibu Listiana Operananta, and executive representatives and colleagues from PT Pelabuhan Indonesia (Pelindo), PT IPC Terminal Petikemas, PT Multi Terminal Indonesia, PT Indofood Sukses Makmur (Bogasari), CBH Group, Government of East Java, Government of Western Australia Department of Jobs, Tourism, Science and Industry (DJTSI). 

For further information, Dominque can be contacted on:
dominique.thatcher@fremantleports.com.au

L-R Dominique Thatcher (Fremantle Port), Listiana Operananta (Consul General) and Larissa Taylor (AIBC)

Food & Agriculture Group

On March 2nd the AIBC Food & Agriculture Group held its first in person gathering in Shepparton.  The event was a great success with 40 people in attendance.  The event was an interactive discussion session led by group Chair, Garry Embleton, and Professor Edward Buckingham of Monash University.  The event was attended by the Indonesian Consulate Economic team, high profile local businesses including Geoffrey Thomson Group, SPC and Goulburn Valley Dairy along with great representation by students and staff of Goulburn Valley Grammar School which has one of the strongest Indonesian language programs in the state. 

On the day, the AIBC representatives were able to join the Consular team in a meeting with the Mayor of Greater Shepparton, Cr. Kim O’Keefe and a site visit the newly built and very impressive, Geoffrey Thomson fruit processing facility at Mooroopna.  We express our sincere thanks to everyone that made us so welcome and the visit a great success.

The next gathering of the Food & Agriculture group is being scheduled for the Gippsland area in April.

Healthcare Group

It's been a busy period for the Group since the last newsletter article. In recognition of the interest in healthcare opportunities, the Group has grown to now have 70 members from nearly 40 organisations.

A Directory of organisational members has been developed and is downloadable from the Group's page on the AIBC website – you can view it by clicking on the image below.

With Indonesia hosting the G20 this year, President Jokowi has selected three priority objectives: improve the global healthcare architecture, digital transformation, and energy resilience. There is significant activity in Indonesia about this, and the Group is staying across the developments in healthcare and digital health and is involved in some key activities.

In other news:

• The Indonesian and Australian Health Ministers signed a Memorandum of Understanding for cooperation on 4 February. The Group is in active discussions with government stakeholders to gain an understanding of its scope, etc., so that we can best position industry to assist with delivering on its objectives.
• Plans are underway for a significant joint hybrid event mid-year, which will encapsulate the healthcare-related Blueprint event (the series is discussed elsewhere in this newsletter), the MoU and possibly G20 aspects. A trade mission is also being contemplated. Stay tuned for updates.
• Elliot Fisher, a Masters of International Relations student at Melbourne University has joined the Group as an intern for his semester. He is developing a strategy for the Group as his assessable output, which is going really well.

The Group continues to make great use of its Microsoft Teams based collaboration platform and has active discussions underway about many topics of interest.

For information about the Group, please click here or contact the Chairman Jeff Parker at jp@jpconsulting.com.au or on +61 411 110 299.

Minerals, Energy and Industry Group

The resumption of the Melbourne Mining Club’s activities after Victoria’s last pandemic lockdowns brought together many leaders of Australia’s minerals and energy sectors and investors to hear the keynote address of Owen Heggarty, OAM, Executive Chair of EMR Capital, an AIBC National Corporate Member, and a key sponsor of AIBC’s Indonesia advocacy booth at the annual IMARC international conference in Melbourne since 2019.  Owen is a popular speaker and advocate of Australian relationships with Southeast Asia having led very successful Australian mining investments in Laos (Oxiana at Sepon) and Indonesia (EMR Capital at Martabe) and now, through EMR Capital, partnering Indonesian investments into Australia’s resources sector.

EMR Capital’s Executive Director Tony Manini kindly invited and introduced to the minerals and energy community Indonesia’s new Consul General to Victoria and Tasmania, Mr Kuncoro Giri Waseso (who was formally and publicly welcomed by Melbourne Mining Club co-founder Gavan Collery), and Ms Muniroh Rahim, Minister Counsellor for Economic Affairs, and also hosted Geoffrey Gold, Chair of the AIBC National Minerals, Energy and Industry Group.

The Consul General had the opportunity to meet with many Australians resources and investment sector executives who have had extensive business experience and also residency in Indonesia and to discuss the future of bilateral business between Australia and Indonesia in the minerals sector under IA-CEPA, including the upcoming combined Government of Indonesia – AIBC booth at the 2022 International Mining and Resources Conference (IMARC) in Melbourne during 17-19 October.

For information on participating in the AIBC National Minerals, Energy & Industry Group or IMARC 2022, contact Geoff Gold at gmgold@goldgroup.biz.

L-R Tony Manini (Director, EMR Capital), Kuncoro Giri Waseso (Consul General, Geoffrey Gold (Gold Communications)

Indoview

IIPC and BKPM Newsletters

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

Read the newsletter here.

The Indonesian Ministry of Investment/BKPM in Jakarta also published their latest November and December newsletters, which can be viewed here and here.

Carbon Trading Framework

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at Indonesia’s new regulations on Carbon pricing and trading.

"At the recent United Nations Climate Change Conference in Glasgow, Indonesia’s President announced the issuance of a new regulation on carbon pricing and carbon trading.

The new regulation is intended to provide a general regulatory framework for Indonesia’s efforts to reduce greenhouse gas emissions through a variety of initiatives including carbon trading.”

To read this article in full, click here.

On/Off Coal Export Bans

In another article, Bill Sullivan of Christian Teo & Partners, looks at recent Coal Export bans.

"On the last day of 2021, the Government announced the imposition of a one month ban on all coal exports from Indonesia in an endeavour to overcome the serious rundown of coal stockpiles at power plants owned or operated by the State Electricity Company and other parties.

The coal export ban subsequently began to be gradually lifted by the middle of January as power plant coal stockpiles were replenished.

Recurring ‘on/off’ coal export bans are definitely not a viable solution to the problem of how to ensure that the State Electricity Company obtains adequate coal supplies on a long-term basis.”

To read this article in full, click here.

Australia Appoints new Consul-General in Surabaya

Ms Fiona Hoggart has been appointed as Australia's Consul-General in Surabaya.

“Underpinned by our Comprehensive Strategic Partnership and the Indonesia-Australia Comprehensive Economic Partnership Agreement, Australia's relationship with Indonesia serves as one of our most important partnerships. Our extensive cooperation spans strategic, security, economic and people-to-people ties, which are more important than ever as we work together to respond to and recover from COVID-19.

Surabaya, Indonesia's second largest city, is an important destination for Australian trade and investment. Australia's mission in Surabaya reflects our long-standing connection to East Java, a province which now accounts for approximately 14 per cent of Indonesia's gross domestic product.”

To read this announcement in full, click here.

World’s Largest Trade Agreement Arrives

On January 1st “the Regional Comprehensive Economic Partnership Agreement (RCEP) comes into force, giving Australian farmers and businesses access to the world's largest free trade agreement.”

Minister for Trade, Tourism and Investment Dan Tehan welcomed RCEP entering into force for Australia, New Zealand, Brunei Darussalam, Cambodia, China, Japan, Laos, Singapore, Thailand, and Vietnam. The Republic of Korea will follow on 1 February 2022.

“RCEP will help stimulate growth and investment across the region, providing increased opportunities for Australian business. With Australian-made products and services held in such high regard in these markets, RCEP is a fantastic opportunity for Australian businesses,” Mr Tehan said.

To read this announcement in full, click here.

Australia’s Solution to Soaring Food Prices in Indonesia

“Indonesia suffers from some of the highest food prices in Southeast Asia. Over the past decade, government policies focussed on food self-sufficiency have contributed to this problem. As its economic policies are thrust into the spotlight upon its first-time leadership of the G20 grouping, Indonesia should seize this opportunity to pivot away from ‘agricultural nationalism’. In order to stabilise food prices and improve livelihoods, activating a food security partnership with its G20 neighbour Australia offers a quick win.”

To read this article in full, click here.

Indonesia’s New Capital, Nusantara, Moves Forward

Indonesia’s Parliament “approved a bill to relocate Indonesia's capital from Jakarta to a site deep within the jungle of Kalimantan on Borneo island, the most significant advancement of an idea the country's leaders have been toying with for years.

The new state capital law, which provides a legal framework for President Joko Widodo's ambitious $32 billion mega project, stipulates how development of the capital will be funded and governed.”

To read this article in full, click here.

Australia’s Nickel Mines Expands in Indonesia

Australia's Nickel Mines Ltd (NIC.AX) said “it would acquire a 70% stake in the Oracle Nickel project in Indonesia in a $525 million deal, as it sets its eyes on becoming a global top-10 producer of the commodity.

Under the deal, Nickel Mines will pay investment firm Shanghai Decent Investment (Group) Co Ltd $371 million and will be obligated to pump a further $154 million towards construction of the project.”

To read this article in full, click here.

Bukalapak Opens Tech Hub in Melbourne

“The Representatives of Indonesian Government in Australia have consistently pushed cooperation in digital technology and innovation, as recently demonstrated by the Government of Indonesia's support for Bukalapak's partnership with Victorian Government in Australia. Bukalapak has set up a R&D Hub in Melbourne, Victoria, which becomes Bukalapak's first international base for research and development centres).

The opening of the said hub will enable Bukalapak to access Victoria's capabilities and pool of talent in digital technology and innovation and at the same time to explore cooperation opportunities with Victorian universities. The inauguration was attended by the Indonesian Ambassador in Canberra, the Indonesian Consul General in Melbourne, the President of Bukalapak, and the Treasurer of Victoria.”

To read this article in full, click here.

President Officiates First Car Export to Australia

“President Joko Widodo (Jokowi) officiated the export of the first batch of cars from Indonesia to the Australian market.

President Jokowi remarked that the first export of cars from PT Toyota Motor Manufacturing Indonesia to Australia served as proof that Indonesia had seized the opportunity to explore new export markets.”

To read this article in full, click here.