Trade between Indonesia and Australia has generally been low. Investment has also been underperforming. The Indonesia-Australia CEPA adopts the powerhouse, aiming to build an integrated value chain between the two countries. The overall objective of this project is to identify existing and possible economic powerhouse opportunities between Indonesia and Australia, building on the countries’ comparative advantages to build value chains for a product or service that can be sold competitively to third markets.
The study will look at the compositions of value chains among sectors in Indonesia and Australia to draw insights from the value-added structures of sectors in each country. An assessment of each partner’s contribution to the other country’s value added will be carried out and the sectors that can significantly benefit from value chains between Indonesia and Australia will be identified. The findings will be used to recommend strategic third-country markets and the economic powerhouse opportunities with greatest potential that could be supported.