Joint media release with Prime Minister Scott Morrison
Australia and Indonesia have successfully concluded negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), deepening our economic and security cooperation with one of our major trading partners.
A passionate commitment to ensuring open trade with the world, through such free trade deals, is one of the key elements in the Morrison Government’s plan to keep our economy strong. A stronger economy means we can guarantee the essential services that all Australians rely on.
The partnership between Australia and Indonesia is one of our nation’s most significant. Indonesia is playing, and will continue to play, a much greater role on the global stage, particularly in the areas ofeconomy and security.
Indonesia is one of the largest economies in the world, and bolstering the economic ties between our nations will lead to even greater opportunities for Australian businesses.
This stronger relationship will ensure increased prosperity for both Australians and Indonesians. It will further reinforce Australia’s strengths to build opportunities in Indonesia, as well as enable Indonesia to tap into economic prospects here in Australia.
A renewed economic partnership with Indonesia is particularly a major boost for Australian farmers with the grains, live cattle, dairy and horticulture sectors to benefit from greater certainty of access and lower tariffs.
As a result, Australian farmers will be able to export 500,000 tonnes of feed grains such as wheat into Indonesia tariff free. This is a significant boost for the Australian wheat industry, building on our substantial milling wheat exports.
IA-CEPA will support Australian industrial producers in areas such as steel, copper and plastics. Australian service industries including health, mining, telecommunications, tourism and education will also have greater access to Indonesia’s growing economy.
Vocational training providers that are Australian-owned will now be able to partner with Indonesian business to provide quality skills training to upskill Indonesia’s workforce.
The Agreement will also expand the two-way investment relationship between our two countries. Australian investors will now have greater certainty under Indonesia’s foreign investment regime, which will help to drive more Australian investment in Indonesia.
IA-CEPA has attracted strong support from the Australian business community, including the Indonesia-Australia Business Partnership Group.
Malcolm Turnbull, Steven Ciobo and Australia’s trade negotiators have delivered a landmark advance in our economic partnership with Indonesia, which the Morrison Government will proudly build on.