ASIATODAY.ID, JAKARTA — Australia and Indonesia have entered a new phase of economic cooperation with the launch of Katalis 2.0, a strategic initiative under the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA) aimed at expanding trade, accelerating investment, strengthening industrial competitiveness, and creating new opportunities for businesses in both countries.
The launch marks the next chapter of bilateral economic collaboration following the first phase of Katalis, which ran from 2021 to 2025. The new program will serve as a platform connecting governments, industries, and economic institutions to unlock greater benefits from IA-CEPA.
Katalis 2.0 was officially launched by Australia’s Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite MP and Indonesia’s Deputy Minister of Trade Dyah Roro Esti Widya Putri, in the presence of government representatives and business leaders from both countries.
“Indonesia is one of Australia’s closest economic partners. Together, we are creating more opportunities for businesses, strengthening economic resilience, and building shared prosperity for both countries,” Thistlethwaite said.
IA-CEPA Reshapes Bilateral Economic Relations
Since IA-CEPA entered into force in 2020, economic ties between Australia and Indonesia have expanded significantly.
Thistlethwaite said two-way trade between the countries has tripled since the agreement was implemented, while Australian investment in Indonesia has continued to grow by around 8 percent and is now approaching US$1.2 billion annually.
“These achievements demonstrate that Australia and Indonesia’s economic partnership is becoming stronger, while also highlighting the significant opportunities that remain ahead,” he said.
The development reflects the broader role of IA-CEPA beyond traditional trade liberalisation, positioning the agreement as a foundation for long-term economic integration amid shifting global supply chains and increasing competition for investment.
Services Economy Emerges as a New Growth Driver
Australia and Indonesia are expanding their cooperation beyond goods trade, with greater focus on high-value sectors including services, tourism, education, digital economy, and investment.
Thistlethwaite highlighted the growing contribution of services in strengthening bilateral economic relations.
“Trade in goods is important, but trade in services plays an equally significant role,” he said.
Tourism remains one of the strongest links between the two economies. Indonesia, particularly Bali, continues to be one of the most popular international destinations for Australian travellers, while visits to other Indonesian regions are also increasing.
Australia also noted that when services trade is taken into account, Indonesia records a trade surplus with Australia, reflecting the increasingly balanced nature of the economic relationship.
Supporting Indonesia’s Industrial Competitiveness
Indonesia’s Deputy Minister of Trade Dyah Roro Esti Widya Putri said the government will continue leveraging IA-CEPA to enhance national industrial competitiveness and expand opportunities for Indonesian businesses in international markets.
“Indonesia is committed to expanding trade and investment opportunities that strengthen national industries and provide greater access for Indonesian businesses to global markets,” she said.
Through Katalis 2.0, cooperation will focus on strengthening industrial capacity, improving economic institutions, encouraging innovation, and creating a more competitive business environment.
The program also places emphasis on inclusive economic participation, including increasing opportunities for women and underrepresented business groups.
A Strategic Partnership for a Resilient Indo-Pacific Economy
Deputy for Macroeconomic Development at Indonesia’s Ministry of National Development Planning (Bappenas) Dr Eka Chandra Buana said international partnerships such as IA-CEPA play an important role in supporting Indonesia’s long-term development agenda.
“Collaboration that strengthens institutions, promotes innovation, and mobilises investment will contribute to more sustainable, inclusive, and resilient economic growth,” he said.
The launch of Katalis 2.0 comes as countries across the Indo-Pacific seek to strengthen supply chain resilience, attract quality investment, and build more sustainable economic partnerships amid global uncertainty.
For Australia and Indonesia, IA-CEPA is evolving beyond a trade agreement into a strategic economic platform — one designed to foster deeper integration, innovation, and shared prosperity in one of the world’s most dynamic regions. (AT Network)
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