Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), established in 2020, has increased trade between Indonesia and Australia by 90%. Under IA-CEPA, Australia eliminated 6,474 tariff lines (100% of total tariff lines), reducing import duties on all Indonesian products to 0%. In return, Indonesia removed 10,229 tariff lines (94.5% of total tariff lines). "As close neighbors committed to promoting regional stability, Indonesia and Australia have fostered economic growth, resilience, and enhanced trade and investment," Airlangga stated in Jakarta on Friday. Australia has become a growing partner for Indonesia. In 2023, Australian Foreign Direct Investment (FDI) in Indonesia grew by 4.0%, amounting to USD 545.2 million, with the number of investment projects increasing by more than 200%. "To deepen economic ties, Indonesia is implementing key programs such as Prospera, Katalis, and the new Climate Infrastructure Partnership. These initiatives connect our businesses, drive innovation, and support sustainability," he added.
Airlangga further explained that Indonesia aims to achieve national economic transformation by 2045, projecting a population of approximately 320 million with a per capita income of around USD 30,000, resulting in an economy worth about USD 9 trillion. At the 75th Anniversary of Australia-Indonesia Diplomatic Relations Gala Dinner, Airlangga expressed his appreciation to the Australian Government for supporting Indonesia's accession process to the Organisation for Economic Co-operation and Development (OECD). He also mentioned that Indonesia will sign the Indo-Pacific Economic Framework (IPEF) next month. Highlighting the numerous multilateral agreements Indonesia has signed, he emphasized the promising prospects for the country. "As we commemorate this 75-year milestone, I am hopeful that the strengthened relationship between Australia and Indonesia will play a crucial role not only in this region but also on the global stage," he concluded.
