Jennifer Mathews
National President

President's Column

Dear AIBC Members and Friends

I am pleased to present AIBC’s first newsletter for 2024. 
The year has got off to a busy start as AIBC continues to look at new ways of delivering value to our membership - through information sharing, networking and advocacy.

Earlier this month, AIBC was well represented at the ASEAN Australia Special Summit held in Melbourne from 4-6 March, as a celebration of 50 years of partnership between Australia and members of ASEAN. The Summit provided an excellent opportunity for networking and discussion around the key themes of Emerging Leaders, the Energy Transition, and the opportunities for SME’s.   With a middle class of 190 million, the opportunity for Australia to engage with ASEAN is immense.  Building Asian literacy and understanding risk mitigation were identified as key issues in ensuring that Australia does not miss out. 

As a sideline event to the Summit, AIBC was pleased to partner with IABC, the Indonesian Chamber of Commerce and Industry and Fitzpatrick & Co Advisory  in hosting the Australia Indonesia Special Dialogue. AIBC was joined at the event by members, Sun Cable and Bass Oil, with panel discussions highlighting the importance of strengthening two way trade and investment, as part of Australia’s engagement with the wider region.

AIBC is actively engaged with key stakeholders on the implementation of initiatives under the Government’s “Invested: Australia’s Southeast Economic Strategy to 2040.”   This includes activation of the Investment Deal Teams, the Southeast Asia Business Exchange and a Pilot Program for Young Professionals. These are all welcome practical initiatives which will help to support our membership, and the wider business community, to connect into the opportunities within Indonesia.

Following nationwide elections on 14 February, the Indonesian election commission has since confirmed Prabowo Subianto as Indonesia’s President elect, having won just under 60% of the vote. The newly elected Indonesian President and Vice President are expected to be sworn in on 20 October 2024.  AIBC was pleased to partner with the Australia Indonesia Centre in hosting a members’ only briefing on the elections outcome, and what this means for Australian business.  Panel members - AIC Director, Kevin Evans, Bambang Harymurti from Tempo and Budy P. Resosudarmo, Australia National University – shared their insights on the shape of the new government and the implications for the Australia/Indonesia relationship.

As part of our advocacy efforts, AIBC has been actively engaging with Government on key issues of interest to members, including the revision of the EMDG Guidelines and expediting Indonesian import permits for Australian agribusiness and food products.  AIBC has also met with the Department of Home Affairs in Canberra to discuss the need for ongoing reforms to visa requirements for Indonesians visiting Australia. 

AIBC’s State Chapters are planning a range of networking events over the coming months, so please join us if you can.   AIBC’s Industry Groups (Healthcare; Mining and Energy; Agriculture and Food; Education, Skills and Training and Investment, Finance and Infrastructure) continue to provide a valuable industry sector focus for our membership and stakeholders. 

I am delighted to report that planning is full steam ahead for the 2024 AIBC National Conference to be held at the Sofitel Sydney Wentworth Hotel from 11-13 November.  The theme of this year’s conference is “Invested Australia/Indonesia”: The Time is now/Sekarang Waktunya.” The program will include exciting plenary sessions, as well as break outs offering interactive discussion on key industry sectors: Healthcare, Education and Skills, Clean Energy, the Digital Economy and many more.  We are also pleased to offer a range of exciting sponsorship opportunities – with details available here.

We hope you will join us in Sydney in November for what promises to be a great National Conference.

Finally, AIBC is a voluntary organisation which relies on the support of its membership and welcomes new members.  Information on joining AIBC may be found here.

Salam Hangat

Jennifer Mathews
National President

ACT update

AIBC (ACT) members attended the monthly Diplomats and Guests networking night at the Commonwealth Club. The event was focused on the Embassy of Cuba, which included a presentation on Cuban issues, dancing display, and Cuban cigars. With over 100 people in attendance the AIBC members were able to discuss business opportunities between Australia/Indonesia and other countries. AIBC members were joined by members of the Australia Indonesia Association, who have expressed interest in running a joint event similar to the Cuban night for Indonesia. The next event is booked for 4th April, which will be networking drinks at the Commonwealth Club.

Brad Rogers

ACT Chair

QLD Update

AMEC and AIBC jointly convened a seminar and networking event on 22 February 2024 to share information about existing and future opportunities for cooperation between Indonesia and Australia in relation to mining, critical minerals, METS and battery metals value chain. 
Moderated by AIBC Qld committee member, Craig Wilson, the panel was made up of five experts from across industry and policy domains.  In a sold-out event, the audience heard a range of insights into existing bilateral business linkages and investments as well as thoughts on new opportunities. 

The Indonesian Ambassador to Australia, H.E. Siswo Pramono, spoke to Indonesian Government policy in relation to electric vehicles, critical mineral processing and decarbonisation.  Along with industry panellists, there was resounding support for more mutual recognition of professional qualifications and the unmet demand for skilled labour for this sector in Australia which could be at least partially addressed with Indonesian professional talent. 

There was great interest in doing more to map the scope of existing two-way exchange of capital and technical know-how.  The panel and audience viewed the forthcoming Australia-ASEAN Summit as a further opportunity to amplify the value of opportunities that lay ahead.

L-R Craig Wilson, Peter Mellor, Johanna Kennerley, H.E. Siswo Pramono, Josh Steele, Stephen Wilmot

NT Update

On the 27 February 2024, AIBC-NT and the Department of Foreign Affairs and Trade (DFAT) co-hosted a member gathering to discuss the Skills Development Exchange Program.

The guest speaker for the evening was Daniel Simson who leads the Free Trade Agreement (FTA) Mobility Implementation Unit in the DFAT. The Unit is responsible for delivering two streamlined visa initiatives, agreed through Australia’s FTAs with Indonesia and the United Kingdom.

The Skills Development Exchange Pilot (SDE Pilot) provides a visa pathway for Indonesians to build skills and cultural understanding through placements in Australian organisations. The SDE is available to a range of sectors and placements can be for up to 12 months. The program is also open to Australians looking for a similar experience in an Indonesian organisation.

Applications to participate in these programs are assessed by DFAT, on a 7-day turnaround. DFAT provides successful applicants with a supporting letter for a subclass 403 visa (Government Agreement stream).

Business sponsorship and labour market testing are not required. For both programs, applicants must undertake occupations in Australia defined at ANZSCO Skill Levels 1-3, and meet any relevant licencing or certification requirements.

It was great to have the acting Consul Gina Fadila and members of the Indonesian Consulate attend along with many of our members.

The session generated a number of questions on the Skills Development Exchange Program and DFAT extended an offer to sit with any organisation to discuss how these exciting opportunities can support their organisation.

Kate Heelan

NT Chair

NSW Update

Firstly, our event on the 2024 Indonesian Presidential Elections on 22 November, led by Emeritus Prof. Greg Fealy, was a resounding success. The hybrid format ensured wide participation and Fealy's insights were truly captivating. We received fantastic feedback from the audience.

Additionally, our International Women's Day celebration on March 13th featured Chef/Author Lara Lee, Armina Rosenberg, and Davina Adisusila. The event drew a fantastic turnout, with attendees praising it as the best AIBC gathering they've experienced. Thank you all for your continued support and participation. We look forward to bringing you more enriching events in the near future.

Lydia Santoso

NSW Chair

L-R Lara Lee, Armina Rosenberg, Lydia Santoso, Davina Adisusila.

SA Update

Indonesia recently held elections for a new president and vice president, marking a pivotal moment in its political landscape. On Saturday, March 2nd, 2024, Merantau Coffee organised a Brekkie Talk: Election Reflection session. Merantau Coffee, conceived by Harry Wardana, is located at Adelaide University, and is known for its ethically sourced coffee and authentic Indonesian cuisine. Amalia Sosrodiredjo, the Director of Rubrik Solutions, provided valuable commentary as a discussant alongside Dr. Sulistiyanto (Pak Budi). Dr. Sulistiyanto shed light on the democratic fervour witnessed among Indonesians during the election festivities.

Key inquiries from participants included the anticipation of election outcomes, the notable preference of Generation Z and Millennials for Prabowo Subianto and Gibran Rakabuming Raka and potential shifts in policy direction. This was followed by discussions on the implications for Australia.

Additionally, the enduring appeal of "Ketokohan" among Indonesian voters was a topic of discussion. Voters drawn to leaders who possess charisma, influence, and respect.

Guests were treated to a selection of Indonesian delicacies, including Nasi Kuning, Bakso, Siomay, and the renowned breakfast dish Bubur Ayam, accompanied by authentic Indonesian coffee. The ambiance was further enhanced with live music, drawing a crowd of over 60 attendees. Overall, the event was a resounding success fostering insightful discussions and cultural exchange in a vibrant setting.

On Thursday the 29th of February, AIBC SA as a member of the Multicultural Chambers of Commerce attended the Governor's Multicultural awards. The awards celebrate the impact of South Australian cultural diversity and the people who work energetically on behalf of the multicultural communities of which Indonesia plays an important part. AIBC SA is proud to be involved with the Chamber and the events it supports. This was held at Government House and the awards have run for nearly two decades.

David West

SA Chair

Minerals, Energy & Industry Group

AIBC members support Indonesia Financial Services Authority in Sustainable Taxonomy for Energy Transition

Three members of the AIBC have supported the Indonesia Financial Services Authority (Otoritas Jasa Keuangan - OJK) in progressing the Indonesia Sustainable Taxonomy designed to support Indonesia’s energy transition commitments to the Paris Agreement.

Monash University Indonesia, The Australia-Indonesia Centre, and XSPI (Cross Sector Development Partnerships Initiative) created an ESG Capability Joint Venture (JV) in early 2023. The JV’s focus is to understand and support ESG capability building needs for Indonesian industry.

The ESG JV members provided pro bono support to assist OJK in the design and facilitation of a CEO Roundtable on Indonesia’s approach to the development of its Sustainable Taxonomy.

Professor Andrew MacIntyre, President and Pro-Vice Chancellor, Monash University Indonesia, and Kevin Evans, Country Director, The Australia-Indonesia Centre, co-chaired the event with Henry Rialdi, Executive Director, OJK,  Dan Evans, XSPI Founding Chair and Zoey Diaz, XSPI CEO, in attendance.

The Roundtable focused on two main themes related to energy transition, namely the Indonesian Sustainable Taxonomy Framework (IST), together with exploring the challenges & policy recommendations to support sustainable financing. OJK’s goal was to seek perspectives and input from the financial services as well as energy sectors on the advanced draft of the IST and its related policy recommendations.

The Roundtable was conducted on 24 November 2023 based on invitation from OJK and attended by 65 participants representing five Indonesian banks/financial services institutions, nine international banks from six countries (Australia, Germany, Japan, Malaysia, Singapore, UK), three energy sector companies plus OJK staff and ESG JV members. Anna Skarbek, CEO of Climateworks Centre, Monash Sustainable Development Institute (MSDI), provided valuable insights from the Australian experience on energy transition and related sustainable financing and the Australian approach to its sustainable taxonomy.

The ESG JV team provided OJK with a summary report synthesising the insights provided from the roundtable participants including seven key recommendations for consideration.

Contact Geoffrey Gold, Chair, AIBC National Minerals, Energy and Industry Group: MinsEnergyInd@aibc.com.au

Advocacy

Import permits

AIBC Food & Agriculture Group Chair, Garry Embleton has been actively liaising with relevant Indonesian and Australian authorities, on behalf of members, to expedite the issuing of Indonesian import permits across a range of food commodities, including Meat, Live Cattle and Horticulture.  AIBC welcomes the news that import permits on various agricultural commodities are now being processed . The timely issuance of import permits is critical to the free flow of trade between Australia and Indonesia and AIBC will continue to monitor and advocate for a smooth and transparent process.

Indonesian Language Learning

AIBC is concerned with the decline in Indonesian language studies. The fact that Indonesian language enrolments for year 12 students have declined by 50 per cent in just one school generation underscores the urgency of addressing this issue. Recently AIBC wrote to the NSW Minister expressing its concerns regarding the potential cancellation of the "Indonesian Extension" course in New South Wales. We note that in light of recent developments and strategic considerations outlined in Australia's Southeast Asia’s Economic Strategy to 2040 (Economic Strategy), as well as the Prime Minister's announcement of a $2 billion investment facility to support business engagement with Southeast Asia, the importance of reversing this decision.

Increasing cultural literacy and capability is identified as paramount to realizing the breadth of opportunities in Southeast Asia. This necessitates greater investment by employers and students to recognize the lifelong advantages of understanding our region. By fostering a deeper understanding of Southeast Asian languages and cultures, more Australians can build partnerships with the region and capitalize on opportunities for trade and investment.

AIBC understands that NSW has now reconsidered its decision.

Indoview

Regulatory Changes for Electric Vehicle Industry Investment

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at new regulations for the electric vehicle industry in Indonesia.

“The (Indonesian) President recently issued a new regulation that is intended to encourage greater investment in the Indonesian electric vehicle industry. The new presidential regulation was followed shortly thereafter by a new Minister of Industry regulation.

Of particular interest are the regulatory changes in respect of (i) conversion of internal combustion motors to electric battery motors, (ii) domestic content requirements for electric vehicles and (iii) incentives being offered to parties investing in Indonesia’s electric vehicle industry.”

To read this article in full, click here.

Carbon Capture and Storage – New Regulatory Framework

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at the new regulatory framework for carbon capture and storage in Indonesia.

"The (Indonesian) Government has materially expanded the existing regulatory framework for so-called ‘carbon capture and storage’ via a newly issued presidential regulation directed at helping to realize the achievement of Indonesia’s ambitious goal of net zero greenhouse gas emissions by 2060.

A degree of uncertainty still surrounds the viability of large-scale implementation of the currently available technology for carbon capture and storage. The Government, however, clearly sees carbon capture and storage as having some potential to become at least part of the solution to the greenhouse gas emissions problem in Indonesia. At the same time, the Government also hopes to make Indonesia a regional hub for carbon capture and storage.”

To read this article in full, click here.