Jennifer Mathews
National President

President's Column

Dear AIBC Members and Friends,

AIBC was delighted with the timing and success of the visit in June this year by Australian Prime Minister Hon Anthony Albanese, signalling the importance of Indonesia to Australia, particularly from a trade and investment perspective.

On the back of the Prime Minister’s visit to Indonesia, AIBC is seeing renewed interest in strengthening bilateral trade and investment ties with Indonesia - including through the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

This has been a “gamechanger” in improving access to our respective markets, creating new opportunities for partnership across a range of industry sectors.

AIBC has been actively engaging with industry to promote these opportunities.

This year, we were delighted to partner with DFAT in staging the National Indonesia Series “Indonesia it’s time to take a fresh look” – focussing on priority industry sectors where there is strong alignment between Indonesian economic priorities and Australian industry capability - as highlighted in the Blueprint for Trade and Investment in Indonesia, including:

• Health and aged care
• Education, Skills and Training
• Resources and Energy
• Digital Transformation
• Agribusiness and Food
• The Blue Economy

Overall, the series saw over 1000 participants attend in person and virtually from across Australia and Indonesia, with events held in capital cities across the country.

The series attracted a broad range of Australian companies interested in either exploring or expanding their operations in Indonesia - from energy and resources, agribusiness and food, education and training through to the health sector. This included case studies showcasing large corporates as well as niche start-ups who are now operating successfully in Indonesia
Thank you again to our major partner, DFAT, for its contribution in making the series such a success.  

As Indonesia hosts the G20 and B20, AIBC was also delighted to partner in a series of B20 Business Forums held across the country, featuring a major B20 trade and investment delegation from Indonesia.  The Business Forums provided the opportunity for dialogue on practical ways we can collaborate, and to build those relationships which are so important to strengthening B2B connections. 

B20 Forum

As a member of Chief Executive Women, I was also delighted to be a part of the Indonesia Australia Dialogue on Women’s Leadership in Trade and Investment, which brought together senior business women from Australia and Indonesia.  Discussions were held around opportunities offered by trade agreements and the upcoming G20, B20 and G20 EMPOWER events for improving relations between our countries. Our sincere thanks to our partners in the event - Katalis, Investing in Women and IBCWE, and to the CEW members who contributed their insights and expertise.

In our next major initiative, we are pleased to announce that the AIBC will be holding its National Conference in Darwin from 2-4 November 2022, with the theme “Partnering for Growth – Stronger, Together”.

As both countries emerge from the pandemic, this is the first conference of its kind since the entry into force of the IA-CEPA in July 2020.

The Northern Territory has a long history of trade relations with Indonesia and so we are delighted that the Northern Territory Government has agreed to sponsor the conference as hosting partner.

This year’s conference will focus on building strategic partnerships across priority industry sectors for Australia and Indonesia, including healthcare; education and training; food and agriculture; infrastructure and advanced manufacturing, creative industries, and the energy transition. 

The conference will bring together senior government and industry leaders to discuss practical ways our businesses can work together to unlock the trade and investment opportunities between our countries.  For more information click here.

We look forward to you joining us at the National Conference.
 

Jennifer Mathews
National President

National Industry Series: "Indonesia: It's time to take a fresh look"

With the recent visit to Indonesia by Prime Minister Anthony Albanese as his first bilateral engagement as Prime Minister and with Indonesia to host the G20 later this year, AIBC has noticed a substantial increase in interest in Indonesia. At the forefront is the strengthening of Australia’s bilateral trade and investment ties with Indonesia, facilitated by the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). In the space of two years, IA-CEPA is creating bilateral commercial opportunities for Australian businesses to partner with their Indonesian counterparts. As both countries emerge from COVID, the AIBC has stepped up its engagement with industry to promote and facilitate bilateral business opportunities.

AIBC was proud to have partnered with the Department of Foreign Affairs and Trade (DFAT) to stage the National Industry Series – “ Indonesia: It’s Time to Take a Fresh Look”. The series visited multiple Australian capital cities between 18 May - 28 July, focussing on priority industry sectors including the Blue Economy, Resources and Energy, Agribusiness and Food, Education and Training, Health and Aged Care, and the Digital Transformation. Opportunities for alignment between Indonesian economic priorities and the capabilities of Australian industry were highlighted by panels of Australian and Indonesian experts, including government representatives and business figures. 

Case studies of businesses operating in Indonesia were shared, spanning large corporations to start-ups operating in niche fields. Examples from Australian businesses included Austin Engineering’s ongoing METS manufacturing projects and Aspen Medical’s $1.3b deal to build and operate healthcare clinics and hospitals in Indonesia. Several of Australia’s leading agribusiness ventures shared case studies about the success of grain exports to Indonesia. The series saw over 1000 participants from across Australia and Indonesia, providing a valuable platform for deepening understanding of how Australian industry and Indonesia can partner for mutual benefit.

AIBC Victoria was honoured to host an event in the National Industry Series entitled “Indonesia: It’s time to take a fresh look – Agriculture and Food”. This featured an engaging presentation by the Hon Emil Dardak, Deputy Governor of East Java, followed by a thought-provoking panel sharing their insights from an industry perspective.

The event had a strong presence from the Federal and State Government, including colleagues from DFAT, Austrade and Global Victoria, in addition to attendees from a wide range of businesses in agriculture.

The National Industry Series served as the first comprehensive engagement since IA-CEPA was implemented in July 2020. The AIBC extends its thanks to all those involved with particular appreciation extended to Indonesian Ambassador to Australia, HE Dr Siswo Pramono and Australian Ambassador to Indonesia, HE Penny Williams.

B20 Delegation and Business forums

Indonesia’s presidency of the G20 and B20 provides an excellent opportunity for highlighting the importance of the Indonesia-Australia relationship.

As an auxiliary summit of the G20, the B20 allows the international business community to relay information and recommendations to state leaders attending G20 in November this year. In the wake of the COVID-19 pandemic, this years’ B20 emphasises themes of collaboration, inclusion and innovation between countries and businesses, especially in the areas of Global Health Architecture, Sustainable Energy and Digital Transformation.

AIBC contributed to this years’ B20 summit by working with its partners to host a series of business forums titled "Road to B20: Recover Together, Recover Stronger", featuring a major Indonesian trade delegation with events taking place across major Australian capital cities between 31 July and 6 August.  The Business Forums provided the opportunity for dialogue on practical ways we can collaborate, and to build those relationships which are so important to strengthening B2B connections.

AIBC would like to thank the Indonesian Government and the many partners, contributors and attendees who contributed to making the series a success.  AIBC is confident that the connections formed, and information shared will contribute to a successful B20 summit.

2022 AIBC National Conference

Partnering for Growth: Stronger, Together

 2 - 4 November 2022
Mindil Beach Resort, Darwin 

AIBC is pleased to announce that its Conference 2022, with the theme of “Partnering for Growth: Stronger, Together”, will be hosted in partnership with the Northern Territory Government, in Darwin, Northern Territory, 2-4 November.

As the Australian and Indonesian economies emerge from the challenges of COVID-19, and as Indonesia serves its term in 2022 as President of the G20, there is a strong and renewed focus on how we can partner together, and emerge stronger than before.

With IA-CEPA still barely 2 years old, a solid foundation has been laid across a number of key sectors, and it’s time now to take another great leap forward.

We look forward to having you there with us to enjoy the topical and informative Program, the unique networking opportunities, and the great sightseeing and other attractions that the Northern Territory has to offer. This year our Conference will for the first time follow a hybrid format, with both in-person and online options available to delegates, permitting greater access and participation.

Please visit and bookmark our AIBC Conference 2022 web page here, as this will be regularly updated with the latest Conference information, including program, pricing and registration details, as well as other handy information for delegates.

We also have a number of sponsorship opportunities that are available for the conference.  Please click here for further information.

Kindly brought to you in association with

Become an AIBC Member

Indonesia’s hosting of the 2022 G20 summit makes clear the importance of Indonesia to the global economy. Australia has recently recognised this importance through the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), aiming to facilitate closer economic ties between Indonesian and Australian industry. IA-CEPA ensures that the Indonesia-Australia relationship poses an exciting opportunity for Australian businesses seeking to expand throughout 2022-23 and beyond.

The Australia Indonesia Business Council (AIBC) specialises in supporting Australian businesses from a range of industries to unlock their potential by accessing the rapidly emerging Indonesian market. By becoming a member of AIBC a variety of benefits become available including conferences, networking events, monthly e-newsletters, publications, reports, and joint meetings with key government, diplomatic and business figures. These benefits are also complemented by regular events, with preparations currently underway for a National Conference in Darwin from 2-4 November 2022 and a national roadshow in partnership with the Australian Department of Foreign Affairs and Trade.

For membership pricing and to register as a member please visit here.

*AIBC is proud to encourage wider engagement with the Indonesian-Australia relationship by offering discounted membership options to retirees, young professionals, students and supporters of AIBC’s mission.*

Australian Institute of International Affairs (NSW)

On 26 July, AIBC National President Jennifer Mathews delivered a keynote address to the NSW Branch of the AIIA on "Indonesia: It's time to take a fresh look".

Read the article here.

AIBC Upcoming Events

GIPPSLAND & LATROBE VALLEY | AIBC Victoria Food & Agriculture Business Event
31 Aug 2022 (12:30 pm - 2:00 pm) AEST / GMT+10
Morwell Innovation Centre
1 Monash Way
Morwell VIC 3840

Please register here as soon as possible.

AIBC NSW | “Ngobrol Series” with Caroline and Andrew Olah, Founders and Directors of Reddie Furniture
1 Sep 2022 (5:00 pm - 6:30 pm) AEST / GMT+10
Reddie
410 Crown Street
Surry Hills NSW 5010

Please register here as soon as possible.

GEELONG REGION | AIBC Victoria Food & Agriculture Business Event
28 Sep 2022 (3:30 pm - 5:30 pm) AEST / GMT+10
Rydges Geelong
Cnr Myers & Gheringhap Street
GEELONG VIC 3220

Please register here as soon as possible.

Indoview

IIPC Newsletter

The Indonesia Investment Promotion Centre (IIPC) has published its July 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.

Second Tax Amnesty – Prioritizing Value Added Processing & Renewable Energy Utilization

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at Indonesia’s 2nd Tax Amnesty aimed at stimulating Value Added Processing and Renewable Energy.

" The Government is seeking to use Indonesia’s second tax amnesty as a means of encouraging greater investment in certain sectors of the economy that are being prioritized for development.

The economic sectors that stand to benefit from the second tax amnesty are valued-added natural resource processing and renewable energy utilization. A new ministerial decree, however, makes clear that the reduced tax rates will not automatically apply to newly disclosed assets that are invested/reinvested in any type of natural resource processing or in any type of renewable energy utilization. The types of natural resource processing and renewable energy utilization, that will attract lower tax rates for invested/reinvested newly disclosed assets, are actually very specific. The inclusions and the omissions are, in some cases, surprising.”

To read this article in full, click here.

Concessional Coal Pricing for Metal Mineral Processing

In another article, Bill Sullivan of Christian Teo & Partners, looks at coal pricing for metal mineral processors.

" The Ministry of Energy & Mineral Resources has recently extended the availability of Indonesia’s hugely concessional coal price to a much wider group of domestic coal users than was previously the case.

Domestic coal users in the metal mineral processing & refining industry have, however, been expressly excluded from the right to benefit from the concessional coal price. The reasons given for this exclusion do not stand up to serious analysis.”

To read this article in full, click here.
 
Further recent articles can be found linked here regarding Big Tax Increases for Coal, Bauxite Ore Export Ban, and the new Draft Energy Law.

Indonesian students arrive in the Northern Territory for new biosecurity program

Six students from Indonesia who are studying animal science, have arrived in the Northern Territory for an exchange program that has a special focus on biosecurity.

To read this announcement in full, click here.

Indonesia’s Economy Expands 5.44% in 2nd Quarter, Exceeding Expectation

Indonesia’s economy has accelerated in the second quarter against a gloomy global economic backdrop, thanks to windfall revenue from rising prices of its commodity exports and strong household consumption during the Islamic festive season as the number of Covid-19 cases receded.

The largest economy in Southeast Asia was 5.44 percent in the second quarter this year from the same period last year, accelerating from 5.01 percent in the first quarter, the Central Statistics Agency (BPS) announced Friday.

To read this announcement in full, click here.