Indonesia and Australia Launch IA-CEPA Katalis 2.0, Australia Pledges AUD 40 Million
The governments of Indonesia and Australia are optimising the benefits of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) through the launch of the Katalis 2.0 programme. This continuation programme is intended to strengthen two-way trade and investment, while opening new economic opportunities for businesses in both countries through collaboration between government, industry, and various economic institutions.
Assistant Minister for Foreign Affairs and Trade of Australia, Matt Thistlethwaite MP, stated that the Australian government has allocated AUD 40 million to support the implementation of Katalis 2.0. The move is directed at creating new business opportunities while expanding the benefits of IA-CEPA. According to Matt, this programme is a continuation of the successful first phase of Katalis 1.0 during the 2021-2025 period. That programme boosted business cooperation between the two countries, including supporting Indonesian exports to Australia in the cocoa commodity sector and developing human resource capacity through education.
Matt said the second phase of the programme is also targeted to provide greater support for businesses that still require assistance, such as small and medium-sized enterprises (SMEs) and women-led businesses. He cited an example from Katalis 1.0, which benefited Indonesian and Australian businesses through improved market access and workforce capacity development. One such example is a small Indonesian business managed by women that is now able to export cocoa products to the Australian chocolate market. Additionally, a training programme for Indonesian nurses has enabled them to improve their competencies to work in Australia’s health sector.
On the same occasion, Indonesia’s Vice Minister of Trade, Dyah Roro Esti Widya Putri, revealed that education is one of the sectors with significant potential for further development in Indonesia-Australia cooperation. This is reflected by several Australian university campuses that have opened branches in Indonesia, providing access for Indonesians to obtain international standard education without needing to study abroad. Roro said the two governments have also discussed opportunities to increase collaboration in the services sector.
"One of the sectors previously discussed is the health sector, particularly for nursing staff. We hope that in the future there will be knowledge transfer or training for our workers so they can meet international standards," Roro explained. Furthermore, Roro said the government is encouraging small and medium-sized enterprises (SMEs) to increase their export capacity to take advantage of opportunities in the Australian market. She noted that the IA-CEPA cooperation has had an impact on increasing bilateral trade between the two countries, with the value of Indonesia-Australia trade rising from US$7.2 billion in 2020 to US$13 billion in 2025.