China`s inflection point in the implementation of these threats appears to be linked to Australia`s support for an independent investigation into the origins of SARS-CoV-2. But there is also a greater trend in China`s relations with the West. It is clear that the “wall of fire” that many countries have maintained between the economic and political aspects of their relations with China is no longer tenable as Beijing tries to achieve its geopolitical objectives. Apart from this, Indonesia is considering allowing foreign companies to invest in higher education, which, along with hospitals, is an area in which the country falls well short of international standards. Australia is beginning to experience China`s economic sinality. A Chinese anti-dumping case against Australian barley, which began in 2019, has become ugly. China followed its threats and, on 17 May, imposed a total of 80 per cent of tariffs on Australian barley. China followed suit by banning Australian beef from Queensland slaughterhouses under the pretext of food safety. Today, about $2 billion in exports are at risk.
The AI-CEPA is the first in a series of subsequent agreements that Indonesia concludes or negotiates with advanced partners. An agreement between Indonesia and South Korea is about to be concluded and a free trade agreement is being negotiated with the EU. Indonesia is also part of RCEP. It has expressed interest in joining the CPTPP, which would be an important step, although some analysts doubt that Indonesia will be able to comply with its provisions. Australian Trade Minister Simon Birmingham said: “This is the most comprehensive bilateral trade agreement Indonesia has ever signed, and it will give our exporters a competitive edge in one of the fastest growing economies in the world.” The state of their bilateral economic relations makes the agreement a step forward. For two economies close to the G20, their trade and investment relations are surprisingly weak. No two G20 countries do as little as Australia and Indonesia without a sanctions regime. Indonesia`s share of Australia`s total trade has stagnated by about 2% over the past two decades, while Australia`s overall trade with Asia has increased. During the first foreign visit of new Australian Prime Minister Scott Morrison to Jakarta, he and Jokowi announced an agreement on the IA-CEPA on 31 August 2018.  However, the signing was delayed due to a bilateral dispute over Australia`s recognition of West Jerusalem as israel`s capital, which sparked Indonesian diplomatic protests.
  The agreement was finally signed in March 2019 by Lukita and Australian Trade Minister Simon Birmingham, subject to ratification by the Australian Parliament and the Council of Indonesian People`s Representatives.   Australia`s live cattle exports will increase under the agreement, with the removal of tariffs and a 4% annual increase in the number of animals exported to Indonesia to 700,000. This year will be a difficult year for trade. The COVID 19 pandemic resulted in an unprecedented cessation of activity. The shock is two-way and affects both supply and demand. Travel restrictions and measures of social disintegration have disrupted the basic instruments of international trade: travel, personal meetings and major events. Supply chains are collapsing. Indonesia is very early on the verge of entering regional commercial architecture. Most of their existing agreements are concluded within the “plus” framework of asean countries. Japan is its only other G20 partner with which Jakarta has a bilateral agreement.
The AI-CEPA was an exercise that prepared Indonesia for its next steps in establishing economic cooperation with other advanced economies in the Indo-Pacific region. The agreement between Australia and Indonesia will allow Australian companies to invest mainly in various industrial sectors in Indonesia, including health, telecommunications, energy, mining and aged care.