Indonesia, Australia Exchange Stage One Reports as IA-CEPA Review Begins

JACKTV.NEWS – JAKARTA, Sept. 8, 2026 Indonesia and Australia have formally begun a general review of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), with both countries exchanging their respective Stage One Reports in Canberra on Aug. 27.

The exchange marks the first stage of the review process, providing a basis for the two countries to assess the implementation of IA-CEPA during its first five years and identify areas where economic cooperation could be strengthened.

Indonesia's Director General of International Trade Negotiations at the Ministry of Trade, Johni Martha, handed Indonesia's Stage One Report to Ravi Kewalram, First Assistant Secretary and Chief Negotiator of the FTA Implementation and Stakeholder Engagement Division at Australia's Department of Foreign Affairs and Trade. Kewalram handed over Australia's report in return.

During the meeting, Johni called for the further development of IA-CEPA to adopt a "powerhouse" approach aimed at strengthening economic linkages between the two countries through greater trade in goods and services, investment and participation in global supply chains.

"Indonesia wants IA-CEPA to deliver greater benefits for both countries. Future cooperation should be directed not only at increasing trade, but also at investment, services and connectivity within global supply chains," Johni said.

Johni also raised Indonesia's trade deficit with Australia as one of the issues to be addressed in the review.

Kewalram, meanwhile, stressed the importance of assessing bilateral trade relations from a broader perspective, rather than focusing solely on trade-balance figures. He highlighted the importance of supply-chain linkages and the wider economic benefits generated for both countries.

Indonesia also raised several emerging issues in its Stage One Report that are increasingly relevant to bilateral economic relations, including the digital economy, critical minerals, the environment and food security.

The exchange of the Stage One Reports will be followed by the preparation of a Stage Two Report, or Joint Report. At this stage, Indonesia and Australia will discuss the findings of their respective reports to identify common areas and potential new areas of cooperation as they seek to modernise IA-CEPA.

Indonesia-Australia Trade

Bilateral trade between Indonesia and Australia reached $8.92 billion in January-July 2026, comprising $2.1 billion in Indonesian exports to Australia and $6.8 billion in imports from Australia.

Indonesia therefore recorded a trade deficit of $4.76 billion with Australia during the period.

In 2025, Australia ranked as Indonesia's 17th-largest export destination and sixth-largest source of imports.

Total bilateral trade reached $13.09 billion in 2025, consisting of $3.73 billion in Indonesian exports and $9.36 billion in imports. Trade between the two countries grew by 2.16% over the five-year period from 2021 to 2025.

Indonesia's main exports to Australia include electrical machinery and equipment, machinery and mechanical appliances, inorganic chemicals, articles of iron and steel, and footwear.

Australia's main exports to Indonesia include cereals, mineral fuels, ores, slag and ash, precious stones and jewellery, and live animals.

Adolf Hutabarat
JACKTV.NEWS