AEGIC welcomes the establishment of Katalis, a new economic cooperation hub between Indonesia and Australia which will help drive grain trade between the two countries.
Katalis – which means “catalyst” in Bahasa Indonesia – will play a crucial role in facilitating grain opportunities as part of the broader Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which celebrates its one-year anniversary in July 2021.
AEGIC CEO Richard Simonaitis said increasing grain trade and cooperation between Indonesia and Australia was a key focus for AEGIC.
“Through in-market engagement and webinars, we deliver regular and consistent information to Indonesian customers about the quality of Australian grains for feed and food, including practical information about how to maximise value,” he said.
“Through the COVID period, we have supported Indonesian flour millers and food businesses with print and video resources about how to implement and manage COVID-19 hygiene practices.
“We’ve recently launched a dedicated website filled with resources for current and prospective Indonesian grain customers, aiming to provide technical information which will inform their views on the value in using Australian grains.”
Mr Simonaitis said AEGIC’s Economics and Market Insight Team have completed a major analysis of demand for feed grains in Indonesia as part of IA-CEPA.
“This work, which was commissioned by DFAT, is a collaboration with GrainGrowers and has identified new opportunities within IA-CEPA,” he said.
“By 2030 an extra 8.7 mmt of feed grains and meals will be needed every year to help boost production in order to meet the increased demand for meat and fish, and Australia is well-placed to capture some of this market.”
As part of IA-CEPA, 500,000t of Australian feed grains can enter Indonesia duty-free, with an allowance for 5% growth each year.
Mr Simonaitis said while IA-CEPA brings exciting opportunities for Australian and Indonesia, it is heartbreaking to see the recent increase in COVID-19 cases.
“Our thoughts are with our friends in Indonesia during these terrible times,” he said.
AEGIC’s Indonesia portal: https://www.aegic.org.au/indonesia/
AEGIC is an initiative of the Western Australian State Government and Australia’s Grains Research and Development Corporation.