According to vibizmedia.com, Indonesia and Australia have begun a formal review of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), with a focus on deepening industrial cooperation, investment, services, and global supply chain integration.
First-Ever Joint Evaluation Underway
The review was formally launched in Melbourne, Australia, on 26 August 2026, followed by the exchange of Stage One Reports — national evaluations from both countries — in Canberra on 27 August 2026. These reports serve as the foundational assessment of IA-CEPA’s implementation during its first five years and identify concrete opportunities for economic cooperation expansion. The process sets the stage for a Stage Two Report, a jointly authored document aimed at aligning evaluation findings and pinpointing pathways to modernize the agreement.
The initiative underscores a strategic pivot: moving beyond commodity trade toward value-added industrial capacity and structural integration. According to the report, total bilateral trade reached USD 13.09 billion in 2025, while January–July 2026 trade totaled USD 8.92 billion — comprising Indonesian exports of USD 2.1 billion and imports of USD 6.8 billion.
Powerhouse Approach to Economic Integration
Johni Martha, Director General of International Trade Negotiations at Indonesia’s Ministry of Trade, advocated for a “powerhouse” approach to IA-CEPA’s future development. This strategy prioritizes strengthening economic linkages not only through goods trade but also via investment, services, and participation in global supply chains.
“Cooperation going forward must be directed not only to increase trade, but also investment, services, and connectivity within global supply chains.” — Johni Martha, Director General of International Trade Negotiations, Ministry of Trade of the Republic of Indonesia
This framework directly addresses Indonesia’s persistent trade deficit with Australia. The report notes that Indonesian exports to Australia are led by electrical machinery and equipment, mechanical appliances, inorganic chemicals, iron and steel products, and footwear. In contrast, Australian imports into Indonesia include cereals, mineral fuels, metal ores and ashes, jewelry and precious stones, and live animals — highlighting asymmetries that the review seeks to recalibrate.
New Priorities Emerge in Bilateral Agenda
Beyond traditional trade metrics, the IA-CEPA review has elevated four emerging thematic priorities: critical minerals, digital economy, environmental sustainability, and food security. Australia explicitly views the economic relationship through a broader lens — one that emphasizes supply chain interdependence and the shared generation of economic benefits across sectors.
The timing aligns with Indonesia’s national industrial policy goals. With USD 13.09 billion in annual trade volume in 2025, the review offers a concrete mechanism to advance domestic manufacturing capabilities and expand high-value exports to the Australian market. No company-specific actions or third-party actors outside the two governments and their agencies are cited in the source material.
Source: vibizmedia.com
Compiled from international media by the SCI.AI editorial team.
