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About Katalis

Indonesia–Australia growing together

About Katalis

IA-CEPA ECP Katalis (Katalis) is a unique, five year (2021-25) government-backed business development program unlocking the vast potential of economic partnership between Australia and Indonesia. Established under the Indonesia-Australia Comprehensive Economic Partnership Agreement Economic Cooperation Program (IA-CEPA ECP). It complements existing Australian development program activities with a commercially oriented, bilateral approach, placing gender equality and social inclusion (GESI) at the centre of everything we do.

‘Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.’

Who we work with

We work across agrifood, advanced manufacturing and services target sectors, covering everything from architecture and engineering to health and aged care. We identify and develop new market opportunities, and inspire new business to business partnerships that will drive trade and investment between Southeast Asia’s two largest economies.

What we do

We provide market insights, education, technical advice, policy reform and workplace skills exchange. For example, Katalis is bringing together the complementary strengths of Australia’s green technology with Indonesia’s ambition to manufacture electric vehicles.

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Our focus

  • Greater Market Access for Indonesia-Australia businesses

We support the implementation of IA‑CEPA, helping governments to ensure regulations and policies facilitate trade and investment and  boost business confidence. We identify market access opportunities in both countries to deliver complementary benefits.

  • Better Integrated Markets

Katalis brings Indonesia-Australia businesses closer.  We work with industry across agrifood, advanced manufacturing and services value chains to identify, invest in and catalyse new and existing partnerships.  We integrate markets by aligning standards and conformity assessment procedures and strengthening mutual recognition systems.  We underpin everything we do with a focus on gender equality and social inclusion.

  • Skills for Recovery

Katalis delivers high performance labour market skills for Indonesian businesses and government to boost productivity, gender equality and social inclusion – particularly in sectors heavily affected by COVID-19. We work with industry to identify skills needs and broker focused training, skills exchange and productive connections between Indonesia’s major businesses in key sectors and Australia’s Technical Vocational, Education and Training (TVET) providers.

Our values

Collaborative and complementary: We work with partners to add value and multiply impact by generating goodwill and sharing knowledge and success.

Diverse and inclusive: We embrace diverse groups and interests, and value the voice of all.

Creative and contemporary: We challenge conventional thinking and bring fresh ideas to old problems.

Optimistic and results-focused: We are focused on tangible outcomes, brokering solutions and making a difference.

Resourceful and efficient: We use resources efficiently, effectively and equitably to build on past and current investments.

Bilateral: We are committed to improving the trade and investment relationship, business to business connections and people to people links between Australia and Indonesia.

Katalis is an Australian and Indonesian government initiative, being implemented by Cardno, in collaboration with Equity Economics, EY and AsiaLink. We are overseen by the two governments of Indonesia and Australia through the Economic Coordination Committee (ECC). This committee is co-chaired by Bappenas (Indonesia) and the Australian Department of Foreign Affairs and Trade. The Indonesian Ministry of Trade and Ministry of Foreign Affairs are also members of the ECC.

Contact us

Email: info@iacepa-katalis.org

Address: Tower 2, Level 18, International Financial Centre (IFC), Jl. Jend. Sudirman no. kav 22-23, Jakarta 12920, Indonesia

Due to COVID-19 restrictions, Katalis is operating under remote working arrangements and encourages contact by email.

About IA-CEPA

Unlock your business potential

About IA-CEPA

IA-CEPA creates a framework to unlock the vast potential of bilateral economic opportunities between Southeast Asia’s two largest economies.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) supports Indonesia and Australia’s shared interest for a secure and prosperous region. Coming into force on 5 July 2020, IA-CEPA elevates the bilateral relationship, and creates new markets, relationships and opportunities for businesses, primary producers and skills exchange.

IA-CEPA also establishes an Economic Cooperation Program (IA-CEPA ECP Katalis). Katalis supports the implementation of the IA-CEPA and helps businesses from both countries take advantage of the many opportunities for complementary development and growth.


Key benefits of IA-CEPA

Indonesia

  • Elimination of all Australian tariffs on Indonesian goods exports to support the development of Indonesian manufacturing and processing sectors such as automotive (especially electric and hybrid cars), timber (including furniture), textiles, machinery, agriculture, fisheries, forestry and electronics. This also means any new product Indonesia develops in the future will face no tariff barriers when entering Australia.
  • Australia has provided the most liberal ‘Rules of origin’ requirements for Indonesian electric motor vehicles of any Australian trade agreement – thus offering Indonesia a significant advantage in accessing the Australian market in an industry targeted for its future growth potential. IA-CEPA also facilitates Indonesia’s electric vehicle industry ambitions through access to Australian lithium, nickel, and rare earth element mining projects.
  • Exchange programs and initiatives to strengthen Indonesia’s labour force, include:
    • an increase in the number of Australian work and holiday visas for Indonesians from 1000 to 5000. This will provide work experience and cultural exchange for young Indonesians (as well as assist regional Australia to meet seasonal labour requirements).
    • an agreement to achieve Mutual Recognition on engineering to increase Indonesian workers’ quality and ability to compete in the global market.
    • a commitment to allow up to 200 Indonesians per year to engage in six-month work training opportunities in Australia – helping to upskill Indonesia’s workforce in key sectors.
  • Australian investment in technical and vocational training services in Indonesia, making it easier for Indonesians to gain recognised international qualifications without having to leave home.
  • Economic cooperation on complementary food products such as grain and red meat partnerships, and a food innovation centre.

Australia

  • Over 99% of Australian goods exports by value to Indonesia will enter duty free or under significantly improved preferential arrangements.  (This also benefits Indonesia by reducing the cost of imported commodities to encourage processing in Indonesia).
  • Progressive tariff-rate quota increases for major Australian exports to Indonesia, including agricultural and natural resources commodities. For example, Australian livestock producers have a guarantee of zero tariffs for an annual quota of 575,000 for male live cattle. This will rise to 700,000 in the sixth year of the agreement.
  • In accordance with the WTO Agreement, Indonesia will issue import permits automatically and without seasonality for specific products committed under IA-CEPA.
  • Market access outcomes on services and investment will provide increased certainty for Australian businesses and services suppliers in the Indonesian market, including guaranteed levels of Australian ownership.

Mutual

  • IA-CEPA provides a platform to improve economic relations through a wide range of consultation mechanisms to fine-tune trade and investment procedures over time. These make IA-CEPA a “living agreement”.
  • IA-CEPA provides additional security and certainty for investors through a set of modern, high-quality rules for investment, services and digital trade. An Investment and the Investor State Dispute Settlement (ISDS) mechanism will also provide investors with protection and give them more confidence to move capital between both countries. Among other provisions, the ISDS states that the host state treats investors and covered investments no less favourably than its own investors and investments, and as favourably as investors and investments from other states.
  • Australia and Indonesia have agreed to a reciprocal skills exchange, allowing people with tertiary level skill qualifications from both countries to gain six months experience in the other’s market.

Young Indonesian woman and man look at his phone in a university background

Prior to COVID-19, trade of goods and services between Indonesia-Australia was growing. In 2018-19, total two-way trade in goods and services with Indonesia was worth A$17.8 billion, making Indonesia Australia’s 13th largest trading partner [1]. By some estimates, Indonesia will be the world’s fifth-largest economy by 2030. IA-CEPA ensures that Indonesian and Australian businesses are well placed to diversify and share in that growth, deepening bilateral relations and supporting Indonesia’s development.

What are the opportunities for your business or industry?

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Opportunities for your business

Grow your idea

Opportunities for your business

Funding, expertise and local support is available to deliver activities that meet the following investment criteria:

  • Maximises the outcomes of IA‑CEPA
  • Includes financial or in-kind co-contribution from the beneficiary or beneficiaries
  • Mutually beneficial to Indonesia and Australia and aligned with bilateral and/or regional interests
  • Prioritises catalytic outcomes
  • Delivers gender equity and social inclusion
  • Politically feasible and practical
  • Reflects Australia and Indonesia’s comparative advantages.

Katalis ensures your business is connected and supported to realise bilateral commercial partnerships under IA-CEPA, and that Indonesia-Australia trade and investment ecosystems are better aligned. We work across a diverse range of target sectors including agrifood, advanced manufacturing, education, mining, energy, communications, tourism, health and aged care, architecture, engineering and construction, legal, financial, infrastructure and transport.

We deliver activities in partnership with a range of existing Australian Government programs, such as Australian Awards, Investing in Women and Prospera as well as agencies such as Austrade. Our unique value is in linking trade and development outcomes through private-sector led activities.

Close up of electric vehicle being recharged

In 2021, Katalis is supporting the following investments:

  • Working with Indonesia to identify bilateral agricultural export priorities and pilot a project to deepen market integration with Australia.
  • Connecting Indonesian employers with Australian training providers to expand workforce skills in priority sectors, such as digital services, health and tourism.
  • Supporting both governments to implement IA-CEPA in full, maximising the benefits of the agreement for Indonesian and Australian businesses, including the removal of agreed tariffs and other barriers.
  • Connecting leading women in non-traditional industries with each other to boost opportunities for female entrepreneurs in trade and investment across Australia and Indonesia.
  • Exploring opportunities for Australia’s advanced manufacturing sector to support Indonesia’s development of an electric vehicle industry.

Over the course of the program, through to 2025, Katalis will engage with Indonesian and Australian business and industry groups, calling for activity ideas to identify further investments which will expand existing and build new partnerships, trade and investment.

If your business or industry has an innovative, commercial idea to increase bilateral trade and investment, please contact us through the Business Portal or at info@iacepa-katalis.org.

All activity ideas will be assessed and prioritised against the Katalis investment criteria, giving due consideration to competing ideas, budget constraints, and guidance from both the Government of Indonesia and the Government of Australia. All ideas are welcome but Katalis will only consult with proponents of ideas that show the most potential, noting the considerations above, and collaborate with these proponents to develop and refine the ideas into an agreed activity. Following this consultation and collaboration phase, any activity agreed with Katalis management would then need to be approved by Katalis’s board, the Economic Cooperation Committee (ECC), comprising representatives from the Government of Indonesia and the Government of Australia. Any activity agreed with Katalis management will either be included in Katalis’s annual work plans (finalised every December, for ECC approval and implementation in the following calendar year) or else submitted “out of session” to the ECC for approval.

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