Indonesia and Australia Launch Mutual Recognition Pact to Expedite Customs for Trusted Traders

In a significant move to streamline trade, Indonesia and Australia have implemented a Mutual Recognition Agreement (MRA) for their respective Authorized Economic Operator (AEO) programs, effective January 1, 2026. According to a report from Tempo.co, the agreement means that Indonesian customs and the Australian Border Force (ABF) will recognize each other’s trusted trader programs, providing procedural facilitation for certified companies in both nations.

The MRA grants certified businesses benefits such as priority in customs inspections, special handling during supply chain disruptions, and expedited clearance. This cooperation, based on the World Customs Organization SAFE Framework of Standards, is expected to enhance Indonesia’s economic competitiveness by improving trade efficiency and providing greater legal certainty. The agreement was officially mandated on December 23, 2025, after a successful trial period from September to November 2025.

This bilateral facilitation pact comes as global supply chains are in a state of flux. A survey of 503 logistics executives for the 2026 Agility Emerging Markets Index found that 97% of companies have already shifted or are planning to shift their production and sourcing in response to global volatility. As businesses diversify their suppliers and reconfigure trade routes, agreements like the Indonesia-Australia MRA can make a trade lane more predictable and attractive by reducing friction at the border.

The cooperative nature of the MRA contrasts with other emerging trade strategies. At the Critical Minerals Ministerial in Washington D.C. on February 4, the U.S. administration proposed the creation of a “preferential trade zone for critical minerals,” as reported by Automotive Logistics. This proposed trading bloc aims to use enforceable price floors and adjustable tariffs to protect member nations from external market disruptions and secure access to industrial minerals. While both initiatives aim to create more resilient supply chains, they represent different approaches: one focused on facilitating trade between trusted partners and the other on creating a strategic, protected bloc for essential commodities.