Indonesian tariffs on imported Australian raw sugar are to be slashed while Australia is scrapping import duties on Indonesian herbicides and pesticides.
Indonesian and Australia trade ministers, Enggartiasto Lukita and Steven Ciobo, announced the tariff reductions jointly.
“These tariff cuts reflect our shared ambition for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA),” Mr Ciobo said.
Mr Lukita also weighed in.
“President Widodo and Prime Minister Turnbull are determined to conclude IA-CEPA (Indonesia-Australia Comprehensive Economic Partnership Agreement) this year, and we are doing all we can to make that happen,” he said.
Mr Ciobo said IA-CEPA would create a framework for a new era of closer economic engagement, strengthening and growing Australia’s trade and investment relationship with its largest neighbour.
“The IA-CEPA negotiations align closely with President Widodo’s competitiveness agenda and are already delivering outcomes to support Indonesian and Australian businesses,” he said.
Mr Ciobo said early outcomes such as the Red Meat and Cattle Partnership, were supporting Indonesia’s cattle breeding programs and increasing certainty for Australian live cattle imports.
“A series of short courses for Indonesian businesses and officials are helping to boost export capacity for Indonesia in processed food, herbal remedies, and creative industries,” he said.
Indonesia has a rapidly growing consumer base and is projected to be the world’s fourth largest economy by 2050, according to Mr Ciobo’s statement
Indonesia is currently Australia’s 13th largest trading partner, with two-way trade worth $15.4 billion in 2016. There is substantial scope to grow our trade and investment relationship through IA-CEPA.
Find out more about the work in progress Indonesia-Australia Comprehensive Economic Partnership Agreement by heading here.
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