Trade gains with Indonesia and new medical technology research
Indonesian President Joko Widodo visited Australia earlier this year, just days after the Indonesian Parliament approved the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
In support of one of the key sectors in the bilateral relationship, Asialink Business is delighted to have been able to partner with MTPConnect – Australia’s medical technology growth centre – in developing first of its kind research which explores opportunities for Australia in Indonesia’s rapidly growing digital health sector.
Indonesia is increasingly using technology and the benefits of growing internet connectivity to address complex challenges associated with delivering health services to 260 million people across an archipelago of 17,000 islands.
At an annual growth rate of 60 per cent, digital health revenues in Indonesia are expected to be worth almost $1 billion by 2023 and this is providing new export opportunities for Australian business through new forms of partnerships and collaborations.
IA-CEPA contains new e-commerce provisions that bring the potential to support Australian businesses looking to engage with Indonesia’s digital landscape.
Address to the Australian Parliament
Addressing the Australian Parliament on 10 February, President Widodo reflected on 70 years of formal diplomatic relations and the importance of reinforcing open, free and fair economic principles.
“That is the reason I greatly welcome the Indonesia-Australia Comprehensive Economic Partnership Agreement, IA-CEPA. Collaboration will create opportunities to develop new centres of economic growth and to find a solution for the global economic challenges,” Widodo stated.
The agreement will create new opportunities for Australian businesses in one of the world’s largest and most dynamic economies. Indonesia is on track to become the 5th largest economy globally by 2030.
IA-CEPA will help ensure that 99 per cent of Australia’s goods exports can enter Indonesia duty free or under significantly improved arrangements.
Vocational education providers will also benefit from a package of skills development outcomes. A range of other key sectors, including mining services, ICT, tourism, healthcare and aged care, education as well as financial and legal services, are also set to benefit.
While it was hoped IA-CEPA would enter into force in the first half of this year, this could be delayed due to the COVID-19 pandemic.
Wide-ranging benefits
Asialink Business CEO, Mukund Narayanamurti, says Australian exporters of highly traded goods like beef and grains, as well as steel, copper and plastics are set to benefit.
“New wins in industries like education, training, tourism and health are particularly exciting for Australian providers,” Narayanamurti says.
The long-term success of the agreement will depend on strengthening and diversifying Australia’s investment presence in Indonesia, as well as Australian business’ ‘on the ground’ understanding.
“To translate these opportunities into success, many Australian organisations will need to develop a deeper understanding of Indonesia’s diverse market-place and business culture, along with the skills and capabilities needed to develop effective partnerships,” Narayanamurti says.
Read the analysis on President Jokowi’s visit by Asialink’s Senior Adviser Donald Greenlees here.
Download a copy of the MTPConnect report here.