Modernising IA-CEPA: Australian Business Insights

Drawing on consultations with more than 210 stakeholders led by the Australia-Indonesia Business Council, this report sets out 19 recommendations to modernise the Indonesia-Australia Comprehensive Economic Partnership Agreement.

Since 2020-21, two-way trade between Australia and Indonesia has more than doubled. Indonesia has become one of Australia's fastest-growing trading partners, and IA-CEPA has established a strong framework for cooperation across goods, services, investment, and skills. Despite these achievements, utilisation of IA-CEPA remains relatively low. Only a small share of Australian exporters actively apply the agreement's preferential treatment, and many firms, particularly small and medium enterprises, continue to face practical barriers that limit their commercial impact.

Modernising IA-CEPA will ensure it evolves with bilateral economic conditions and regional benchmarks. An ambitious successor agreement will further unlock opportunities for trade, investment, and economic exchanges, and reinforce the long-term resilience of the bilateral economic partnership.