On 10 January 2012 the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) entered into force for Indonesia.  In September 2012, Australia and Indonesia entered into negotiations for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which aims to further strengthen and expand the trade, investment and economic cooperation relationship between Australia and Indonesia.

NOW is the time for Australian companies to capitalise on the business opportunities in Indonesia!

Indonesia is a significant economic and regional partner for Australia.  Two-way trade in goods and services reached $14.9 billion in the 2013 calendar year, making Indonesia our 12th largest trading partner and our 11th largest export market.  Australian investment in Indonesia was worth an estimated $10.9 billion in 2013, and Austrade estimates that there are more than 400 Australian companies operating in Indonesia, in sectors including mining, agriculture, construction, infrastructure, finance, health care, food and beverage and transport.

The benefits of doing business in Indonesia are legion, including:  population size of 248million (2013), GDP of US$870.3 billion (2013),  GDP per capita of US$3,510 (2013, and GDP growth at 5.8 % (2013).  However, the incumbent challenges are also well known.  Indonesia is identified in Australia’s International Business Survey 2013/14 as being the 4th most difficult overseas market in which to do business.  Local culture, customer payment issues, regulations, licences and standards, and customs costs/delays are cited as the top barriers faced by respondents in the market.  Furthermore, 74% of respondents said it is more or much more difficult than doing business in Australia.  Nevertheless, Indonesia was nominated by respondents as being the 5th most important overseas country they are planning on doing business in/with the next two years.

The Export Council of Australia – with the support of Austrade’s Asian Business Engagement Plan – has formulated a program aimed at demystifying doing business in and with Indonesia.  Featuring a series of training webinars and workshops, this program culminates in a business mission to Indonesia and a showcase of Australian products and services, followed by business mentoring to give participating businesses the best chance at success in this important market.  And we want YOU to be a part of it!


Phase 1 - Education:

• Indonesia market briefing webinar and call for Expressions of Interest from Australian companies interested in participating in the project
• Compulsory face-to-face training seminars run across Australia’s major capital cities. Training will include: legal, IP, contracts, bribery and corruption, logistics, as well as local culture and business practices

Note: Educational material will be made available to all companies and will be turned into an online course to be made publicly available.

Phase 2 - Selection:

• For a company to be eligible to participate in the business mission they must submit an application form which includes information about the company, evidence of their export readiness, a basic export plan, and their reason for targeting the Indonesian market
• To apply, businesses must be or become members/clients of the ECA or affiliated partners of the Indonesia Now program
• The top applicants (max 15 companies) will be selected and unsuccessful applicants will receive written feedback so that they may still continue to explore opportunities to expand their business into Indonesia

Phase 3 – Market Research:

• Market research undertaken for selected companies based on the market for their particular product, and their goals for growth in Indonesia. This will include competitor and demand analysis, pricing information and industry trends

Phase 4 – Webinar:

• Webinar with a supermarket buyer in Indonesia to share insights into what companies must prepare/consider before coming to market
• Personal security briefing

Phase 5 – Business Mission:

• Business mission: 4/5 day business mission to Indonesia including visits to: customs, a 4PL logistics provider, a major port facility, a local bank, serviced office providers, a local lawyer and accountant, and a number of local government agencies
• Showcase event and client networking function: participants will showcase their products at a function organised by the ECA and in conjunction with our partners in the program Potential buyers from the FMCG sector and their customers will be invited to trial the products and provide real-time feedback, for example insights on the packaging, taste and pricing will also be evaluated. Each participant will be given the ‘soapbox’ at one point during the event to promote their company and to sell the story behind their brand in 2 minutes

Phase 6 – Business Mentoring:

• Mentoring groups will be formed by mission participants and led by Indonesia experts who will guide them through the next steps. Formal mentoring will take place for six months following the mission (and may continue informally after that time)
• On completion of formal mentoring, there will be a debriefing where participants will present about their experiences and lessons learnt – all those who took part in phase one will be invited to attend and network
•Short video case studies will be recorded with each of the business mission participants, these will be used to market "lessons learned" and "business tips" to other Australian companies interested in the Indonesian market




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