IA-CEPA Applicable, Trade Minister: Exports to Australia are Duty Free
, Jakarta - The Comprehensive Economic Partnership Agreement between Indonesia and Australia or the Indonesia-Australia Comprehensive Economic Partnership Agreement aka IA-CEPA officially takes effect today, Sunday, July 5, 2020. Minister of Trade Agus Suparmanto hopes that business players and stakeholders can start make use of this agreement.
"All Indonesian export products to Australia have been eliminated from the import duty. For this reason, the IA-CEPA preference tariff must be maximally utilized by Indonesian businesses so that Indonesian exports increase, "Agus said in a written statement, Sunday, July 5, 2020.
The IA-CEPA will benefit Indonesian exporters through the elimination of all Australian import tariffs so that all Indonesian products entering the Australian market will enjoy a zero percent tariff.
Indonesia's export products that have the potential to increase exports include automotive, wood and its derivatives including wood and furniture, fisheries, textiles and textile products, shoes, communication equipment and electronic equipment.
The entry into force of the IA-CEPA is supported by the issuance of three implementing regulations namely Regulation of the Minister of Trade No. 63 of 2020 concerning Provisions for the Origin of Indonesian Goods and Provisions for the Issuance of Origin Documents for Goods from Indonesia in the Comprehensive Economic Partnership between Indonesia and Australia.
In addition, there is also Minister of Finance Regulation No. 81 / PMK.10 / 2020 concerning Stipulation of Import Duty Tariffs in the framework of the Indonesia-Australia Comprehensive Economic Partnership Agreement. And Minister of Finance Regulation No. 82 / PMK.04 / 2020 concerning Procedures for Imposing Tariffs on Imported Goods on Import Under the Indonesia-Australia Comprehensive Economic Partnership Agreement.
In addition to the zero percent export tariff, due to the complementary nature of trade between Indonesia and Australia, the national industry also benefits from the availability of raw material sources at a more competitive price due to the zero percent import duty tariff.
The hotel restaurant and catering industry, as well as the food and beverage industry will get more competitive raw material prices so consumers can enjoy more variants and more affordable prices.
"IA-CEPA is a comprehensive agreement with unlimited coverage on trade in goods, but also includes trade in services, investment and economic cooperation. The comprehensive IA-CEPA coverage will encourage Indonesia and Australia to become true partners in creating a global supply network, "Agus said.