Indonesia-Australia partnership pact a strategic move – The Star

According to an editorial piece carried by an Indonesian news outlet, The Star, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) signed by the Indonesian President Jokowi and Australian PM Morrison on Monday (Feb 10) is considered a strategic move.

Key Quotes:

“The pact is to build a stronger and broader framework for the two countries to unlock their vast potential, fostering economic cooperation between businesses, communities and people.

Unlike a free trade agreement (FTA), which is designed mainly to expand trade ties through the reduction or even complete removal of tariffs, the IA-CEPA will provide broader opportunities for both governments and the private sector not only in the trade of goods and services and investments, but cooperation across the entire spectrum.

Broader than a conventional FTA, the IA-CEPA contains a set of high-quality, modern rules governing the treatment of services and investment, as well as rules on digital trade.

As part of an overall skills package, Australia and Indonesia have agreed to a reciprocal skills exchange, allowing people with tertiary level skill qualifications from both countries to gain six months of experience in the other's market.”