Indonesia, Australia Begin IA‑CEPA Review with Stage One Report

RRI.CO.ID, Jakarta - Indonesia and Australia have officially entered the first stage of reviewing the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA‑CEPA), marked by the exchange of Stage One Reports in Canberra on August 27, 2026.

The report exchange was conducted between Director General of International Trade Negotiations at the Indonesian Ministry of Trade Johni Martha and First Assistant Secretary and Chief Negotiator of the FTA Implementation and Stakeholder Engagement Division at the Australian Department of Foreign Affairs and Trade (DFAT) Ravi Kewalram.

The Stage One Report serves as the foundation for evaluating IA‑CEPA’s implementation during its first five years, identifying areas for improvement, and setting the stage for deeper cooperation. It precedes the drafting of a Stage Two Joint Report, where both countries will align priorities and explore new opportunities.

Johni emphasized Indonesia’s push for a “powerhouse approach” to strengthen economic ties, covering trade in goods and services, investment, and integration into global value chains. He also highlighted Indonesia’s concern over its trade deficit with Australia, urging that future cooperation deliver broader benefits.

Ravi underscored that bilateral trade should be viewed in a wider economic context, beyond balance sheets, noting the importance of value‑chain linkages and shared economic gains.

The Stage One Report also introduces new areas of collaboration, including digital economy, critical minerals, environment, and food security.

According to Indonesia’s Ministry of Trade, bilateral trade between the two countries reached USD 8.92 billion from January to July 2026, with Indonesia recording a USD 4.76 billion deficit. In 2025, total trade stood at USD 13.09 billion, with Australia ranking as Indonesia’s 17th export destination and 6th largest import source. (Diffa Sephiawardhani)