[1] Bilateral trade negotiations began between the two countries in November 2010, with the IA-CEPA itself being announced in a joint statement, during the presidency of Susilo Bambang Yudhoyono and the prime ministership of Julia Gillard.

[8] By February 2017, six rounds of negotiations had been held between the two countries, and both Australian PM Malcolm Turnbull and Indonesian President Joko Widodo (Jokowi) committed to wrapping up the discussions by the end of that year in March 2017.

[12] The signing was however delayed due to a bilateral spat over Australia's recognition of West Jerusalem as Israel's capital, which drew diplomatic protests from Indonesia.

[13][14] The agreement was finally signed by Lukita and Australian Trade Minister Simon Birmingham in March 2019, subject to ratification by the Parliament of Australia and Indonesia's People's Representative Council.

[20] Indonesian economic observers remarked that the free trade agreement may lead to increased imports of agricultural products, primarily Australian beef, which may displace the local cattle industry.