Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will not be agreed upon this year, due to foreign policy. Without mentioning the issue, Trade Minister Enggartiasto Lukita said that the discussion domain is now between each Foreign Minister.
The agreement hang up is allegedly because of Australia’s plan to move its embassy to Jerusalem, which can increase tension in the region. While Indonesia’s stance supports the two-state solution for the Palestine and Israel dispute.
Previously, both countries agreed to sign IA-CEPA in this month after take negotiations around seven years. The Rp17.3 trillion (US$1.19 billion) value IA-CEPA bilateral trade agreement can make thousands of Indonesian products be exported to Australia without tariffs.