In Jakarta, on 4 March 2019, Australian Minister for Trade, Tourism and Investment Simon Birmingham and Indonesian Minister of Trade Enggartiasto Lukita sign the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA; Persetujuan Kemitraan Ekonomi Komprehensif Indonesia–Australia). The ceremony is held at Hotel JS Luwansa, with Indonesian Vice President Jusuf Kalla present. The agreement is done in duplicate in English and Indonesian, both texts equally authentic.

IA-CEPA is a comprehensive bilateral economic partnership covering goods and services trade, investment, e-commerce, intellectual property, investor–state dispute settlement, skills training and visas. Indonesia removes tariffs on nearly all Australian products; Indonesian products enter Australia tariff-free. Australian firms may hold majority stakes in Indonesian telecommunications, transport, health and energy companies.

The annual Indonesian work-and-holiday visa quota rises from 1,000 to 4,100 (later toward 5,000 by 2026); Australian universities may open campuses in Indonesia. The deal includes non-discrimination and expropriation protections, bars forced source-code handover, and grants Australian online marketplaces exceptions to Indonesia’s local data-storage rule.

Article 21.4 provides for entry into force 60 days after the parties exchange diplomatic notifications that domestic requirements are complete, or on another agreed date. Talks began in 2010; after interruptions (2013 spying row, 2015 executions, cattle tariffs), negotiations resumed in 2016. On 31 August 2018 Scott Morrison and Joko Widodo announced political agreement; formal signature was delayed over Australia’s recognition of West Jerusalem as Israel’s capital.

Australia’s parliament ratified via the Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 (Senate 26 November 2019; royal assent 3 December). Indonesia’s People’s Representative Council ratified on 6 February 2020; President Joko Widodo signed Law No. 1/2020 on 28 February 2020. IA-CEPA entered into force on 5 July 2020.

The agreement signed in Jakarta on 4 March 2019 remains the bilateral Australia–Indonesia trade and investment framework, with the official text published by Australia’s Department of Foreign Affairs and Trade.

Image: IA-CEPA signing, Jakarta; Wikimedia Commons. Cropped to 16:9.

Source consulted: Indonesia–Australia Comprehensive Economic Partnership Agreement. Treaty text: IA-CEPA Chapter 21: Final Provisions (DONE at Jakarta, 4 March 2019).