Logistics, Government - High Hopes For New Trade Deal
Australian exports are hoped to increase now that the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) has been signed by Prime Minister Scott Morrison and President Joko "Jokowi" Widodo.
Indonesia was already Australia's 13th largest trading partner. But now, Australian businesses should benefit from greater market access to Indonesia and save money because of lower import tariffs on 99 percent of good sent north across the Timor Sea. Agricultural exporters will receive automatic issue of import permits for live cattle, frozen beef, sheep meat and other key exports. Australian ownership of companies based in Indonesia is expected to increase as well.
The Department of Foreign Affairs and Trade (DFAT) notes the significant opportunity for Aussie businesses because Indonesia is one of the fastest growing economies in the region.
"By some estimates, Indonesia will be the world's fifth-largest economy by 2030, and IA-CEPA ensures that Australia is well-placed to deepen economic cooperation and share in Indonesia’s growth," said DFAT.
In 2018-19, the total two-way trade in goods and services with Indonesia was worth AU$17.8 Billion.