Food & Agriculture Group

Food & Agriculture Trade with Indonesia

In 2020 the, long awaited, IA-CEPA agreement between Australia and Indonesia was ratified by both national governments and is now in active use.

This agreement by no means signifies the beginning of trade in Food & Ag between Australia, with the two countries already sharing a long established trading relationship. However, the improved access and duty arrangements give a valuable boost at a time that every Australian exporter recognises the need for greater diversity in our export market reach.

Indonesia is Australia’s 6th largest agrifood market. Worth $2.6 billion in 2018-19, Australia’s market share of agrifood exports to Indonesia continues to grow.  The benefits offered by IA-CEPA will further boost opportunities in this important sector. In addition, IA-CEPA is the first trade agreement with an inbuilt mechanism to address non-tariff trade barriers.

With over 99 per cent of Australian agricultural goods able to enter Indonesia duty free or under improved preferential arrangements, now is the time for Australian businesses to look at Indonesia and the opportunity that it offers.

The AIBC Food & Agriculture Group Purpose

AIBC recognises that the whilst the IA-CEPA provides fantastic benefits and opportunities for trade in Food & Agriculture between Australia and Indonesia, challenges remain in terms of market access, product registration & regulation, interpretation of rules, Halal compliance and many other potential roadblocks.  For Indonesian exporters, Australia’s strict quarantine & imported foods rules can be equally challenging to navigate.

The AIBC Food & Agriculture Group has been established to:

• Provide an important discussion forum for exporters, service providers, importers and related industries active or interested in trade across the Food & Agriculture space.
• Enable market participants to discuss their experiences trading with Indonesia, good bad and interesting, with a view to identifying common challenges and, where appropriate, using the AIBC network to bring attention to points of improvement.
• Provide a forum for new market entrants to discuss and learn from the successes and challenges of those businesses that have more extensive experience trading with Indonesia.

AIBC recognises that many industries within the Food & Agriculture banner have their own well organised and successful trade discussion forums.  From experience, it is known that, at times, these industry groups can be limited by commercial sensitivities within the cohort.  With the aim of keeping the group broad and non industry specific, the AIBC aim to promote candid discussions that can bring benefits such as:

• Understanding what issues might be unique to specific industries.
• Discovering what issues cross over a range of industries.
• Helping participants understand if their problem is related to their approach and may have a simple solution, or a more systemic problem which can be addressed through greater cross industry knowledge and  pressure on policy makers to find solutions.

The group will have access to policy and decision makers within government departments and quasi government institutions to raise problems and challenges that AIBC may be able to provide a pathway to improvement.

The Group is chaired by John Ackerman, who brings approximately 30 years of experience in the agriculture sector, focused on all aspects, including research, policy development, and industry representation, covering domestic and international elements, including trade and market access matters. 

Based in Melbourne, John joined Grains Australia as General Manager Trade and Market Access in February 2022. 

Prior to joining Grains Australia, John spent 16 years based in Indonesia, from 2016 as a founding Director of PT Mitra Asia Lestari, a company focused on producing sound research, sustainable business development, and increasing leadership capacity within Southeast Asia's agriculture and fisheries sectors. In 2011- 2015 he was Regional Manager Meat and livestock Australia's Indonesia office, and 2006 - 2011 headed up the Australian Department of Agriculture, Fisheries & Forestry office within the Australian Embassy in Indonesia. 

John has a background in marine biology and ecology, obtaining his PhD in 2004 from James Cook University. He is a recipient of an Australia Day Achievement Award for his work overseas and has sat on the Boards of the International Business Chamber in Indonesia and the Indonesia Business Council. 

John can be contacted via email at Food.Ag@aibc.com.au