Indonesia and Australia have a healthy trade and economic relationship, with bilateral merchandise and services trade totalling A$10.6 billion in 2016-17. The stock of outbound direct investment in Indonesia is worth A$6.2 billion in 2016.
Indonesia is Australia's fourth-largest trading partner for goods and services in the Association of Southeast Asian Nations (ASEAN) and its 14th-largest trading partner overall.
In 2016-17, Indonesia was the 14th-largest recipient of merchandised exports from NSW.
There is a considerable opportunity to further develop Australia and Indonesia's economic relationship based on the nations' close proximity and complementary economies. Specifically, export opportunities exist in the areas of:
- agribusiness commodities and associated technologies and services
- education and training
- information and communications technology
- health services
- professional services, including financial and business services
- resources and energy, particularly clean and renewable energy and associated infrastructure
Indonesia-Australia Comprehensive Economic Partnership Agreement negotiations
Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) negotiations commenced in Jakarta in September 2012.
IA-CEPA aims to strengthen and expand the trade, investment and economic cooperation relationship between Australia and Indonesia. It will help bring the region's two largest economies closer together and will form a key part of Australia's regional economic integration as part of the Asian Century.
The announcement of the commencement of IA-CEPA negotiations follows the release of the Joint Feasibility Study on an Indonesia-Australia Free Trade Agreement in April 2009 and the entry into force of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). It is expected that the IA-CEPA will build on the outcomes of the AANZFTA.