Department of Foreign Affairs and Trade (DFAT), Indonesia-Australia Comprehensive Economic Partnership Agreement (2018) Australia Government: Department of Foreign Affairs and Trade – Free trade agreements . The Australian Parliament ratified the agreement under the 2019 Customs Review Act (in addition to CEPs with Peru, Hong Kong and China) on November 26, 2019 and the bill received royal approval on December 3, 2019.  The Council of People`s Representatives ratified the agreement at a plenary session on 6 February 2020.  It came into force on July 5, 2020.  Australia and Indonesia are committed to deepening our economic, trade and investment relations. Indonesia is the largest economy in Southeast Asia and the 16th largest economy in the world. Indonesia is estimated to be the world`s fifth largest economy by 2030. With a population of 264 million, Indonesia offers a significant opportunity for Australian businesses. We have experience in consulting on free trade agreements and market access issues, which are particularly relevant to the Indonesian economy, with its rapid growth, and attract a wide range of international investors.
During the first foreign visit of new Australian Prime Minister Scott Morrison to Jakarta, he and Jokowi announced an agreement on the IA-CEPA on 31 August 2018.  However, the signing was delayed due to a bilateral dispute over Australia`s recognition of West Jerusalem as israel`s capital, which sparked Indonesian diplomatic protests.   The agreement was finally signed in March 2019 by Lukita and Australian Trade Minister Simon Birmingham, subject to ratification by the Australian Parliament and the Council of Indonesian People`s Representatives.   Please visit the Department of Foreign Affairs and Trade website for full information on IA-CEPA. Shortly after Indonesia ratified the agreement, Monash Australian University announced its intention to open a campus in Indonesia, becoming Indonesia`s first foreign university.  Indonesian economic observers have noted that the free trade agreement could lead to an increase in imports of agricultural products, including Australian beef, which could supplant the local beef industry.  The Australian Labor Party also challenged the terms of the contract on investor-state disputes and temporary work in Indonesia in Australia.  The IA-CEPA establishes a framework for Australia and Indonesia to unlock the potential of bilateral economic partnership and promote economic cooperation between businesses, communities and individuals. The next steps are for the legal teams of both parties, who are reviewing and concluding the agreement in order to translate the text into English and Bahasa Indonesia. The translation will be followed by a solemn signing ceremony and the agreement will be made public. The IA-CEPA builds on the benefits of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) agreement, which will be continued in parallel with the IA-CEPA.
Importers and exporters have the opportunity to choose the agreement that is best for them.