The liberalization of Indonesian-Australian trade is the basis for the two countries to welcome a century of bilateral relations. The signing of the IA-CEPA is one of the ways to achieve that goal.
By
Laksana Agung Saputra/Benny D Koestanto/Maria Paschalia Judith Justiari
·3 minutes read
CANBERRA, KOMPAS – Although Indonesia and Australia have different cultural backgrounds, the two countries uphold the same values, namely pluralism, ethnic diversity, tolerance, democracy, respect for human rights and protection of the environment. Such attitudes are believed to form a strong foundation of values for the two countries to form a friendship in the present and the future.
The similarity of perspectives on values was highlighted by President Joko “Jokowi” Widodo\'s state visit to Canberra on Feb. 9 and 10. The visit coincided with the 70th anniversary of diplomatic relations between Indonesia and Australia. During this trip, the President attended at least 10 events.
The President met with the governor general of the Commonwealth of Australia, David John Hurley, Prime Minister Scott Morrison, the chairman of the Australian
Parliament and a number of investors. He also gave a speech in Indonesian in front of members of the Australian Parliament.
In 2050, Indonesia and Australia will transform into big players in the region and the world.
President Jokowi is the second Indonesian president to speak before the Australian Parliament. On March 9, 2010, Indonesia’s 6th president, Susilo Bambang Yudhoyono had a similar opportunity.
"We cannot choose neighbors, but we choose to be friends. Australia is Indonesia\'s closest friend," said the President.
According to the President, 70 years of friendship between Indonesia and Australia is not a short period. 70 years is platinum. The achievement, according to the President, must be strengthened. Indonesia and Australia must jointly prepare as the partnership between the two countries reaches 100 years, in 30 years from now.
"In 2050, our partnership will be at a crucial age. In 2050, Indonesia and Australia will transform into big players in the region and the world," the President said.
Win-win solution
In the midst of rampant protectionism, the President said, Indonesia wants economic, trade and social cooperation between the two countries to be more open and mutually beneficial.
Indonesia and Australia launched an action plan for the implementation of the 2020-2024 Comprehensive Economic Partnership Agreement (CEPA) in Canberra earlier this week. The action plan is in reference to the implementation of the agreement so that mutual economic cooperation can be achieved. Indonesia wants openness so that cooperation in trade, investment and tourism between the two countries will increase.
Australian Prime Minister Scott Morrison in his opening speech said there was enormous potential for the two countries, which had been mutually identified. Both countries were determined to realize that potential through the IA-CEPA. "Once effective, this modern, transformative partnership agreement will open up new economic opportunities and involve more parties: entrepreneurs, farmers, investors, researchers and scientists," Morrison said.
Through the agreement, Australia will eliminate 6,474 tariffs on Indonesian goods. Indonesia will eliminate 94.5 percent of its tariffs, or 10,229 tariffs, in 2020.
Indonesian Trade Minister Agus Suparmanto said trade was an important issue in the President\'s visit to Australia. The ratification of the partnership agreement provides a clear road map for the trade relations between the two countries. Indonesian export products are expected to be competitive and stronger in the global market, especially Australia. Indonesia\'s prime products, including textiles, rubber, wood furniture, carpets, and automotive and spare parts will find a larger market.