September 17, 2021

IA-CEPA: a new chapter in Australian-Indonesian trade

Underweight, underperforming and due for an overhaul. That’s one way to describe the Australia-Indonesia economic relationship. At least, until now.

Entering into force on Sunday 5 July 2020 was the Indonesia Australia Comprehensive Partnership Agreement.

Also known as IA-CEPA (typically pronounced ‘Eye-Ay-Seppa’), it is hoped that the new free trade agreement will revolutionise the Indonesia-Australia partnership. Especially as Indonesia had (prior to COVID at least) one of the fastest-growing economies in the world.

There is some two-way trade, but there could be so much more. A new economic chapter between Indonesia and Australia does need starting.

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