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News > World

Australia, Indonesia Agree to Partner-up in Trade Boost Bid

  • Indonesia's Trade Minister Enggartiasto Lukita and Australia's Minister of Trade, Tourism and Investment Simon Birmingham shakes hands after signing an economic partnership agreement aimed at boosting trade and investment in Jakarta, Indonesia, March 4, 2019.

    Indonesia's Trade Minister Enggartiasto Lukita and Australia's Minister of Trade, Tourism and Investment Simon Birmingham shakes hands after signing an economic partnership agreement aimed at boosting trade and investment in Jakarta, Indonesia, March 4, 2019. | Photo: REUTERS/Willy Kurniawan

Published 4 March 2019
Opinion

Australia and Indonesia signed an economic partnership agreement on Monday, with the purpose of improving trade relations between the two countries.

Australian farmers are pleased as Australia and Indonesia have agreed to partner-up in an effort to improve trade relations with each other.

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Indonesian Trade Minister Enggartiasto Lukita and Australian Trade Minister Simon Birmingham signed the deal in Jakarta following completion of talks that started early in the decade and were occasionally stalled by diplomatic tension, reports Reuters.

Following Monday’s signing, the two governments “will work on an expedited ratification process toward the entry into force of the agreement”, a joint statement said.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (CEPA) will eliminate all Australian tariffs on imports from Indonesia, while 94 percent of Indonesian tariffs will be gradually removed, it said.

Negotiations were concluded in August and the deal had been due to be signed by the end of 2018, but diplomatic friction over Middle East policy delayed the signing.

Australia’s recognizes West Jerusalem as the capital of Israel, which infuriated Indonesian officials who boast the world’s biggest Muslim-majority population, while supporting a two-state solution to the Israel-Palestinian dispute.

The trade deal “is a good step forward for the important bilateral relationship between these G20 nations, which has too often suffered because of political rows,” said Ben Bland, director of the Southeast Asia project at the Lowy Institute in Sydney.

Rosan Roeslani, chairman of the Indonesian Chamber of Commerce and Industry (KADIN), said he expected his country’s textile and footwear industries to benefit the most from the agreement.

Andrew Weidemann, a grain farmer in the Australian state of Victoria, said the agreement was a rare bight spot for an industry crushed by prolonged drought on the east coast.

“It’s a win-win for Australian grain and Australian farmers in general and the economy,” said Weidemann.

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