Jennifer Mathews
National President

President's Column

Dear Members and Friends,

I am pleased to present this newsletter as the new National President of AIBC and hope that you find it useful and informative.

It is a privilege to be taking on the role of National President of the AIBC at such an important time in the Australia-Indonesia economic and trade relationship.

From AIBC’s perspective, several factors have converged to create a unique opportunity for Australian industry in Indonesia.  With the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), the Government’s recently launched Blueprint for Trade and Investment with Indonesia, and the significant economic reforms taking place within Indonesia, the time is right for Australian industry to take a fresh look at the opportunities on our doorstep.

AIBC has a key role to play in ensuring that Australian industry is well informed and able to connect into these opportunities. In this context, AIBC welcomes the launch of the Australian Government’s Blueprint for Trade and Investment with Indonesia, and its focus on four priority sectors – health and aged care, education and training, agriculture and food, and resources and energy – all areas where Australia has strong capability.

Trade Ministers Tehan and Lutfi meet in Jakarta, Sept 29 2021

AIBC is planning a range of forums to promote the Blueprint and looks forward to engaging with Members on the Blueprint’s focus sectors and opportunities.

In the meantime, our State Chapters across Australia have been active hosting a range of events, providing members with an opportunity to meet face-to-face and to share market insights. This has been complemented by the activities of AIBC’s three sectoral working groups – on Food and Agriculture, Healthcare, and Mining and Energy, - providing members with valuable market intelligence and networks in these sectors.

In October this year, we bid farewell to H.E Ambassador Kristiarto Legowo who completed his term as Indonesia’s Ambassador to Australia. AIBC would like to thank Ambassador Legowo for his valued friendship over the past four years at such an important time in the bilateral relationship.   We wish Ambassador Legowo all the very best in his future endeavours.  We also look forward to welcoming his successor, Dr Siswo Pramono, in the coming months.

As we approach the end of the year, we thank all our Members for their ongoing support, particularly as we look to move on from the challenges of COVID-19.

Finally, on behalf of AIBC, I would like to acknowledge the outstanding contribution of our outgoing National President, Phil Turtle over the past four years.  His leadership, passion and commitment to the AIBC, during such an important time in the Australia Indonesia economic relationship have been instrumental to the success of the organisation in delivering value to its members.  We look forward to Phil’s ongoing and active contribution to AIBC as Immediate Past President on the National Board.

We would like to take this opportunity to wish all our Members a safe and enjoyable festive season.

We look forward to seeing you in the New Year.

Jennifer Mathews
National President

On the 29th of September, Hon Dan Tehan MP, Australia’s Minister for Trade, Tourism and Investment, visited Jakarta for a range of high-level meetings. The Minister used this opportunity to co-host the inaugural Indonesia-Australia CEO Roundtable, featuring a number of Australian and Indonesian Business Leaders, alongside Indonesian Minister for Trade H.E. Muhammad Lutfi.

At this forum, Minister Tehan was also able to soft-launch “A Blueprint for Trade and Investment with Indonesia”, which AIBC has contributed to throughout its development, as a member of the Blueprint’s Business Reference Group.

Minister Tehan addresses the inaugural CEO Roundtable in Jakarta

AIBC looks forward to delivering a range of forums to promote the Blueprint and provide our Members, and the broader business community, further insights on the Blueprint’s focus sectors and opportunities.
 
Full and updated details on IA-CEPA can be viewed on the DFAT portal here and on the Blueprint here.

Businesses are reminded too that if they encounter any non-tariff trade barrier, they are able to register them here on the trade barriers gateway (Australian Government) for follow-up.

Green Economy Cooperation

On 30 October, in the wings of the G20 meeting, Australia’s Prime Minister and Indonesia’s President released a “Joint Statement on Cooperation on the Green Economy and Energy Transition” providing a platform for collaboration and partnership as each country makes this important transition. 

President Jokowi holds a bilateral meeting with Prime Minister Scott Morrison in Rome, Italy (ANTARA/HO-Press Bureau of the Presidential Secretariat)

AIBC commentary on this can be found here.

NSW Update

In October, AIBC NSW presented our inaugural “Ngobrol Series” (“In Conversation Series”) of events, and we welcomed our very special guest, Ms. Noni Purnomo, Chair and former President Director of the Bluebird Group.

This informal session included Noni’s journey in building and navigating one of Indonesia’s iconic businesses. The Bluebird group began from humble beginnings and under Noni’s leadership, she has turned it into a multinational company that is recognised worldwide. It is certainly a brand that we Australians recognise and depend upon when in Indonesia. Touted as one of Asia’s most powerful women.  It was an event of immense interest to those who attended.

In November, the NSW chapter held a webinar on EdTech and Innovation - NSW and Indonesia, organised in association with Investment NSW. Case studies of Indonesian and NSW- Australian companies operating in the EdTech ecosystem in Indonesia and Southeast Asia were highlighted. These included Open Learning Limited, the Association of National and Private Schools in Indonesia, Tech in Asia and Asia Cyber University.

This highly interactive session addressed the changes in Education across the world which due to the COVID-19 pandemic has accelerated the adoption of education technologies (EdTech) to support learning for students at all levels and sectors. Indonesia and Australia have been enthusiastic in their roll out of EdTech with both countries spanning vast geographic regions and adopting a range of quality driven digital learning solutions.

EdTech also supports the upskilling and reskilling challenges in the education and training sector in the Australian state of NSW which is an Australian EdTech powerhouse state.

Finally, the NSW chapter welcomes members and friends to our Christmas event on the 16th of December for networking and informal discussion – face to face.

NT Update

Charles Darwin University (CDU) – Education and the Connect Darwin Series

On 21 October the new AIBC-NT Chair,  Kate Heelan along with Mr David McKenzie, Committee Member had the opportunity to meet with Professor Scott Bowman, Vice Chancellor, Charles Darwin University. 

It was great to hear from Professor Bowman about the importance that CDU places on their relationship with Indonesia and the longstanding partnerships that CDU have with Indonesian academic institutions.  Professor Bowman looks forward to the international border being open so he can meet with Indonesian Universities. 

At the meeting, we took the opportunity to discuss the importance of the upcoming AIBC-NT "Connect Darwin Series" of events. The events specifically target strengthening relationships, and sectors that are important to the Territory for Trade and Investment opportunities with Indonesia.  The first session of the "Connect Darwin" series focuses on Education and CDU will be a participating contributor in this event.

2021-2026 CDU strategic plan Charles Darwin University Strategic Plan 

Left to Right - Mr David Mckenzie, Ms Kate Heelan, Professor Scott Bowman

QLD Update

IndOz Conference

The 2021 IndOz Conference and Business Networking Dinner was held on 16 September 2021 at the Brisbane Convention & Exhibition Centre. The focus was on Indonesia / Australia business relations and was strongly supported by the AIBC QLD group.  Around 100 virtual attendees added to the more than 280 delegates present in person.  The conference generated significant optimism about the future for business dealings between the two countries.  AIBC contributed several speakers, several session chairs, and the networking dinner MC. 

One of the many highlights of the day was the address to the business networking dinner by the Honourable Mark Furner MP, Minister for Agricultural Industry Development and Fisheries, and Minister for Rural Communities representing the Honourable Annastacia Palaszczuk, the Premier of Queensland.  The Minister is very supportive of expanding the trade opportunities between Australia and Indonesia.

AIBC Representatives: (Left to right) Peter Baines, David Widjaja, Ben Seumahu, Paul Martins, Sheila Hie, John Kimlin, Jim Cliffin, Colin Brown, Jeff Parker

Minister Mark Furner addressing the business networking dinner

Left to Right:  Bob Gee (Director General, Dept of Agriculture and Fisheries), Peter Baines (QLD Chair AIBC), Melissa O’Rourke (QLD State Director Dept of Foreign Affairs and Trade), David Widjaja (QLD Vice Chair AIBC and IndOz Advsior), Hon Minister Mark Furner (QLD Minister for Agriculture and Fisheries), Sheila Hie (AIBC QLD committee and IndOz Conference Director)

Sundowner Event for new members and new committee

On the 27th October 2021 we held an after-work drinks and nibbles, networking event.  The occasion was used to welcome new members who recently joined the AIBC and also to introduce the new committee serving the QLD branch.  The gathering was held outdoors at Friday’s Riverside in Eagle Street on one of Brisbane’s balmy spring evenings.

Among the 31 registered attendees for the event, the honoured guests at the event included Melissa O’Rourke, QLD State Director DFAT and Councillor Miriam Stemp of the Logan City Council.

We were delighted to welcome the following new members:

• The Palladium Group, represented by Sally Falls and Teresa Prabono
• Health ID Pty Ltd, represented by Matthew Candy
• Consolidated Pastoral Company

A great time of fellowship and networking was had by all.

VIC Update

Consul General

Victorian Chair, Garry Embleton received a very warm welcome to the role from Consul General, Pak Kuncoro Waseso and has commenced a program of regular dialogue with the Consul and the Economic Team, including Ibu Muniroh Rahim and Ibu Ratih Kombonglangi.  Pak Kuncoro was a welcome guest at the Food & Agriculture Group information session and his words of welcome were greatly appreciated.

Global Victoria

AIBC Victoria have established a very active dialogue with Global Victoria, including financial support to the Food & Agriculture Group which is most welcome.  On Wednesday November 24, a Webinar was held with Global Victoria where members discussed the current Indonesian business opportunities and the support that Global Victoria can provide our members.  

End of Year Function

Come along to meet the recently elected AIBC (Vic) committee and get to know, or re-acquaint yourself with, your fellow AIBC members and interested guests.  After prolonged lockdowns, this is a great opportunity in a low key / casual environment to create new business connections and goodwill between Indonesia and Australia.

It will also be the first opportunity for AIBC to formally (in person) welcome Pak Kuncoro Giri WASESO, Consul-General of Indonesia, to his role and we will ask him to share his thoughts on his appointment thus far.  Our newly appointed Chair, Garry Embleton, will give a summary of the year to date and an outline of the Business Council’s direction for the coming year.

Come prepared for a drink or two and perhaps a bite to eat while enjoying the relaxed atmosphere at the European Beer Café on Tuesday 7 December 2021.

Please register here if you would like to attend the event.

WA Update

"Insights from the Ground" Pop-Up Event October 2021

AIBC WA held its first "Pop-Up Event" on Monday 4th October 2021 at the Hylin Back Bar in West Leederville in Perth.

A free, after-work event with catering provided by AIBC, over 30 members and friends joined together for an informal discussion on the theme of "Business Indonesia Style: Insights from the Ground".  A vibrant panel of Peter Hong, Hendro Fujiono and Ati Sinaga shared their career and life experiences straddling cultural contexts in both Indonesia and Australia.  The conversation naturally gravitated to how to re-establish P2P links and two way travel once Western Australia opens its borders, and how to nurture and grow the digital talent of Gen Y and Z.

This was the first time AIBC WA trialled this informal style of meeting.

Many thanks to our panellists, AIBC member and organiser Bryan O'Loughlin from CFO Associates and to the Hylin Back Bar for their support, we'll definitely do this again in 2022.

Asia Business Council WA

AIBC was one of 11 bilateral business councils attending the formal launch of “Asia Business Council WA” held in partnership with Deloittes on 30 November.  The launch was attended by Deputy Premier Roger Cook and Parliamentary Secretary to the Deputy Premier, Simon Millman.

Larissa Taylor (AIBC WA); Simon Millman MLA  (Parliamentary Secretary to Deputy Premier), Jennifer Mathews (AIBC National President); Phil Turtle (AIBC Immediate Past President)

Food & Agriculture Group

On Wednesday October 27 the AIBC Food & Agriculture group hosted it’s first discussion session online.  Hosted by Garry Embleton, Chair of the Food & Agriculture Group with keynote speaker, Leigh Obradovic of AIBC National Corporate member, Toll Group, the session had 45 attendees who all gave great contributions in the breakout rooms which were curated by Professor Edward Buckingham of Monash University.  This was the first of a number of planned sessions where exporters to Indonesia and those with interest in the trade are invited to share their experiences, good, bad and otherwise with a view to understanding issues that are common across the food and agriculture space for improvement by government agencies.  Further sessions are being scheduled for early in the new year in Regional Victoria and enquiries are welcome to garry@ausfine.com.au

Heathcare Group

It has been a busy past few months for the Group, which now has over 60 members from 30+ organisations.

Monthly meetings for members commenced in October, with the November meeting featuring a guest presentation by Dr Hans Widjaya. Dr Hans is the CEO of National Hospital Surabaya, CEO of Lifepartners Health System, an Adjunct Professor at Gadjah Mada University lecturing in their Hospital Management Masters program, and Advisor to the Health Minister.

Dr Hans discussed his hospital, its network and broader challenges and opportunities in healthcare in Indonesia, also his approach to collaboration, which includes with some Australian businesses. He was generous with his time and thoughts, and the Group greatly appreciated the opportunity to talk with a prominent Indonesia healthcare leader.

Upcoming events of note that the Group is involved in include:

• Indonesian Ministry of Health – Health Business Gathering in Bali and online 3-5 Dec. Details can be found here.
• Austrade Jakarta webinar on Healthcare 8-Dec (1-2pm AEDT) – register here.

The Group is making great use of its collaboration platform and has active discussions underway about topics of interest.

The next Group meeting is scheduled for 16-Dec 2-3pm AEDT.

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

National Industry, Energy and Minerals Group

2021 has been a transition year with the Mining & Energy Group expanding to include new dynamics in bilateral trade and investment in the IA-CEPA era.

Australian investment in Indonesian mineral resources continues to hold high ranking, although with increasing premium-value acquisitions by Indonesian partners. During the year shareholders of then ASX-listed Nusantara Resources accepted an on-market takeover offer from Indika Energy, Nusantara’s Indonesian partner in its Awak Mas gold project in South Sulawasi. Australia’s EMR Capital, having sold its interest in its well-developed Matabe gold-silver mine in North Sumatra to Pamapersada, in 2018 has since partnered with Indonesia’s Adaro Energy group in acquisitions of the Ravenswood gold mine and Kestrel metallurgical coal mine, both in Queensland.

Benefiting from the positive generational impact of Australian mining investors in Indonesia - described by Felia Salim of Bank IDX, at the Australian launch of the Australian Government’s ‘Blueprint for Trade and Investment with Indonesia’, as well established and reputable – Australia’s Mining Equipment Technology & Services (METS) sector continues to find Indonesia one of its top two export markets. In June Austrade profiled Bis Industries of Perth as “an Australian success story in Indonesia” now counting “some of Indonesia’s largest miners as key customers” and “well regarded for its innovative products and services”.  This year Austin Engineering moved its headquarters from Brisbane to Perth due not only to the significance of the WA market but also its Indonesian manufacturing operations on Batam Island in Kepulauan Riau.

Now focus has turned also towards Australian experience, technical expertise and essential mineral resources for renewable energy projects ranging from solar and wind to new uses for Hydrogen – the latter where Fortescue Future Industries (FFI) has taken a leading role in ‘Green’ fuel investment – and battery technology research and components to collaborate with Indonesia’s aspirations to be a global player in Electric Vehicles.

The National Industry, Energy & Minerals Group has worked closely with Indonesian Government agencies to expand the Indonesia-Australia information exchange, including support for the Ministry of Energy & Minerals Resources ‘Indonesia Mining & Metal Investment Roundtable’ webinar produced for Australians last month. In October 2022, the Indonesian Government, through the Consulate General in Melbourne and the Indonesian Investment Promotion Centre in Sydney, is committed to the expansion of the information bureau that AIBC has maintained at two editions of the International Mining and Resources Conference and Exhibition (IMARC) in Melbourne. The enhanced GOI-AIBC collaboration at IMARC 2022 will comprehensively cover Indonesian policy and opportunities for Australian trade and investment in Indonesian mining, downstream processing, energy and renewable energy – supported by keynote Indonesian speakers and, border relaxation permitting, Indonesian delegates.

As the National Industry, Energy & Minerals Group adapts to its new digital collaboration platform, AIBC members are invited to make contact to join the group meeting scheduled for 15 December.  For further information please contact its Chair, Geoff Gold, at gmgold@goldgroup.biz or on +61 466 972 822.

Become an Asia capable leader in 2022

Long-time members and supporters of AIBC, Asialink Business, have recently opened applications to join the 2022 cohort of their flagship program for developing Asia capability in Australia, the Asialink Leaders Program.

Asia is critical to Australia’s post-pandemic recovery and future prosperity. Now is the time to intensify deep engagement, connections and the pursuit of long-term opportunities.

With over 26 years of history, the Asialink Leaders Program is Australia’s premier program for the Asia capable leaders of today and tomorrow, empowering over 950 alumni globally. The program offers a transformational experience that will equip you with the latest insights, capabilities, and connections to position you for success with the region. Lead with impact, by navigating opportunities and risks and make better decisions for your organisation in the fast-changing Asia landscape.

To find out more and to apply please click here.

Indoview

IIPC and BKPM Newsletters

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

Read the newsletters here and here.

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

Presidential approval for Ministerial Regulations

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at new requirements for Presidential approval of some proposed Ministerial Regulations.

"Presidential approval is now required for at least some proposed ministerial regulations before they are finalized and issued.

To read this article in full, click here.

New Divestiture Rules

In another article, Bill Sullivan of Christian Teo & Partners, looks at new divestiture obligations applicable to foreign-owned, Indonesian mining companies.

"After a long delay, the Government has finally issued the implementing regulation for those 2020 amendments to the 2009 Mining Law dealing with the divestiture obligation applicable to foreign-owned, Indonesian mining companies.

The new regulation provides much needed detail as to how the procedures for fulfilling the divestiture obligation will be applied following the 2020 amendments. There are both winners and losers as a result of the new divestiture rules.”

To read this article in full, click here.

Indonesia Assumes Presidency of G20

Indonesia officially assumed the presidency of the Group of 20 (G-20) major economies for the first time on Sunday (Oct 31), putting recovery from the Covid-19 pandemic high on next year's agenda.

Italian Prime Minister Mario Draghi handed over the reins to Indonesian President Joko Widodo at the close of a two-day summit which was held in Rome. The meeting took place in person for the first time since 2019.

‘This is an honour for us, for Indonesia, and at the same time a great responsibility, which we must carry out well,’ the Indonesian leader better known as Jokowi said before leaving for the summit on Friday.”

To read this article in full, click here.

Australia Pledges Additional Vaccines

Australia will share a further 7.5 million COVID-19 doses with our good friend and partner Indonesia as we deepen our cooperation on fostering a shared regional recovery from the pandemic.

The additional doses committed brings the Morrison Government’s total pledge to 10 million doses for Indonesia from Australia’s supply.

Tomorrow, 1.2 million of these doses will arrive in Indonesia, bringing our total shared to date to 3.4 million, with more deliveries planned soon.”

To read this announcement in full, click here.

Sun Cable to Invest $2.5 bln in Indonesia on Singapore Power Link

Sun cable, an Australian-Singapore venture, will invest $2.5 billion in Indonesia as part of an ambitious solar power project to provide Singapore with up to 15% of its energy requirements.”

“The Australia-Asia Power Link will from 2027 harness solar energy from the world's largest solar farm and battery storage facility in Australia's northern territory, and export it to the city-state via a 5,000 km (3,109 mile) transmission system through waters off Indonesia, according to Sun Cable.”

To read this article in full, click here.

Australian Ambassador discusses collaboration with South Sulawesi Governor

South Sulawesi Acting Governor Andi Sudirman Sulaiman affirmed that the meeting with Australian Ambassador to Indonesia Penny Williams focused on intensifying bilateral collaboration between the two parties.

During the meeting on October 31, Sulaiman introduced various areas of potential of the province that has 24 districts and cities with 3,047 villages.

These areas of potential cover livestock, agriculture, tourism, fisheries and marine affairs, education, and human resources. He also introduced the investment support for the development of infrastructure, such as the Sultan Hasanuddin International Airport and Makassar New Port.”

To read this article in full, click here