Let’s aim for mutual benefit – comment by CEO Craig Robertson

The law of international trade says that countries export those goods and services they can produce efficiently and in excess of domestic demand, and in return import from countries which can produce and ship other items more cheaply. It’s no surprise, therefore, that Australia’s trade culture grew out of our agriculture industry given we didn’t have the population to consume the bounty of our wide agricultural lands.

This is the philosophy in Free Trade Agreements, many of which Australia has finalised in recent times. The agreements remove or reduce various barriers and rules which act as a friction on open trade. This is no different in the Indonesian Australian Comprehensive Economic Partnership Agreement (IA-CEPA) signed earlier this month by our Trade Minister, Senator Simon Birmingham and the Indonesian Minister for Trade, H.E Enggartiasto Lukita.

However, IA-CEPA is just as much a plan for economic cooperation as it is for trade. Sectors like investment, access to services and goods market and electronic commerce are singled out for special mention in side letters. So is skills development.

It’s an exciting read. Australia is committing to assist to further develop the Indonesian TVET system, including developing training solutions appropriate to Indonesian industry, with improved access for Australian providers to offer training, including full AQF qualifications, in country. Financial support is likely to be given through targeted use of Australia Award Fellowships.

I was lucky enough to be present in Jakarta for the signing of the agreement. Indonesian officials were very quick to point out that the focus on TVET was driven by Indonesian President Widodo, alert to the urgent skills deepening task required in his country if it is to continue its economic transformation.

There are undoubtedly challenges to realising the potential opened in IA-CEPA. There are examples of successful TAFE engagement in Indonesia, but it is not systemic. There are no less than seven ministries with responsibilities for some elements of TVET, and the value the community places on TVET can be dispiriting.

I am also told that Australia’s offshore engagement on skills is sometimes seen as short-term with too much focus on the “sale” – especially of our AQF products.

We have also done it well in the past. The Australia – China Chongqing VET Project, a five-year endeavour on skills development and system reform with coordinated Government and provider input, continues to resonate in China some 17 years after it started.

We at TDA will engage with the Australian and Indonesian agencies to help design the TVET support. We as TAFEs also need to work together if we are to help bring real change to Indonesia. This is the time for network TAFE.

If we get this right as a country and as network TAFE, this could be the biggest legacy of Simon Birmingham as Minister for vocational education and as present, for trade. Time will tell, but the law of trade, in this case mixed with economic cooperation, will deliver benefits for both countries.

Cooperation and understanding of mutuality of benefit is what we need more than ever!