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Red tape stopping IA-CEPA from facilitating free trade between RI and Australia – Regulations

Posted on by darion

The Indonesia-Australia free trade agreement has yet to fully deliver on its promise of boosting bilateral trade and investment, which it announced four years ago. Businesses blame bureaucracy for the difficulties they face in trying to benefit from the pact, known as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Australian Business Ambassador to Indonesia Jennifer Westacott, who facilitates trade links between Australia and Indonesia, said challenges remained, particularly in agriculture, food security and biosecurity, as well as cybersecurity.

“A lot of it just takes a lot of time to sort through,” Westacott said. Jakarta Post Office AND TechInAsia on Friday. “We have to be realistic that some things are complicated.”

The aim of IA-CEPA is to facilitate trade and eliminate tariffs on most goods traded between the two countries.

Under the agreement, Australia eliminated 6,474 tariff posts, all import duties on Indonesian products entering the country. Meanwhile, Indonesia eliminated 10,229 tariff posts, equivalent to 94.5 percent of import duties on Australian products.

Also read: Experts say more open trade between Indonesia and Australia needed for climate progress

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While a free trade agreement is already in place, Westacott said both sides need to build trust and improve their image to be able to strengthen trade ties.