Indonesia to Sign New Trade Deal with Australia

Updated on Wednesday 17th October 2018

Indonesia and Australia have entered negotiations with respect to a new economic partnership in 2016 and by the end of this year, the agreement is expected to be completed. The Indonesia-Australia Comprehensive Economic Partnership Agreement shortly referred to as IA-CEPA will eliminate export tariffs and will increase economic cooperation between the two countries. If you want to open a company in Indonesia, our company formation agents can advise you.

The negotiations for the Indonesia – Australia economic agreements are in the final phase

Indonesia has started the discussions on a comprehensive economic partnership with Australia in 2016, however, negotiations have taken so long because of the many aspects that had to be agreed upon by both governments.

Considering the large number of products which take the road to Australia from Indonesia and the timing for the implementation of the new agreement, it took the authorities of both countries a while to establish the aspects related finalizing the document. At the moment, about 85% of the agreement has been negotiated by the governments of Indonesia and Australia.

Under the new agreement, a large variety of goods will benefit from 0 import duties. Indonesia plans on eliminating 95% of the tariffs imposed on the products exported to Australia in order to benefit as much as possible from the new agreement and to increase the exports to one of the largest economies in the world.

Our Indonesia company incorporation consultants can help foreign entrepreneurs who want to open trading companies here.

Indonesia plans on signing other economic partnerships

Indonesia is currently considering the creation of various agreements which help its economy. Among these, the government is planning on starting negotiations with the European Union. The discussions started earlier this year and through it, Indonesia plans on addressing what could become one of its largest export markets at the moment.

Indonesia is also interested in entering preferential trade partnerships with African countries through which local companies will have various trading options.

Indonesia is one of the largest Southeast Asian countries which is why opening a company here has many advantages. Do not hesitate to contact us if you want to start a business in Indonesia.