Free Trade Agreement Indonesia - Australia

Artha Garcia Putra

1801445176

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) negotiations commenced in Jakarta in September 2012. IA-CEPA aims to strengthen and expand the trade, investment and economic cooperation relationship between Australia and Indonesia. It will help bring the region's two largest economies closer together and will form a key part of Australia's regional economic integration as part of the Asian Century.  

Australia already has trade relations with Indonesia since ago. This can lead to investment and tourism's commitment to increase foreign exchange.

Trade cooperation between Australia and Indonesia were worth $ 14.9 billion in 2011-12, an increase of 8.3% from the previous year. Australian investment in Indonesia reached $ 5.4 billion, while Indonesian investment in Australia rose 11% to $ 454 million over the same period. According to reports from Austrade, predicts that more than 400 Australian companies to invest in Indonesia.

Australian exports of raw materials to Indonesia in the form of grain, meat, oil, aluminum, and cotton. Meanwhile, the majority of Indonesia's exports in the form of refined oil, gold, iron, steel, and aluminum structures. More than 15,000 Indonesian citizens studying in Australia for Australia's contribution to the economy of $ 500 billion.

Indonesia itself imported beef and cattle from Australia amounted to $ 12 billion per year. Because trading began in the 1990s, more than 6.5 million cattle have been sent to Indonesia. Australia is the primary option for supplying cattle Indonesia needs because of its proximity to the lower cost compared to other countries. In 2009, when Indonesia passed Law No. 18/2009 on Animal Husbandry and Animal Health, Indonesia could import beef from other countries of origin are free from foot and mouth disease. The main source of beef from Australia.  

According to reports from the Ministry of Trade, the trade balance between the two countries at the end of last year surplus. It is marked with a tax exemption equal to 0% by the government to improve performance and to expand its export trade.

Reference: 
http://www.dfat.gov.au
http://en.wikipedia.org/