Media Release

9 November 2003 - MVT87/2003

Vaile to Strengthen Business Links with Indonesia

Australia and Indonesia will look to strengthen commercial links at a meeting in Melbourne tomorrow, Trade Minister Mark Vaile said today.

Mr Vaile will meet with Indonesia's Trade and Industry Minister, Rini Soewandi, for the fourth annual Australia-Indonesia Trade Ministers' Meeting.

"The trade relationship between our countries is in very good shape with two-way merchandise trade hitting a record high of $7.51 billion in 2002-03, despite the drought," Mr Vaile said.

"Minister Soewandi and I will be looking to cement this strong relationship at our Melbourne meeting."

Both ministers will also attend a forum of Australian and Indonesian business representatives. A business delegation accompanying Minister Soewandi will include representatives of the automotive, food and clothing sectors.

"The Indonesian market can be a challenging one for exporters but Australian companies have remained committed to Indonesia through good and bad times," Mr Vaile said.

"The Indonesian economy is expected to grow strongly next year and new export opportunities are constantly emerging. While Australian exports to Indonesia have been affected by the drought, Australia has chalked up some notable successes since 2000-01 including increases of almost two thirds in medicaments exports and more than 50 per cent in meat exports.

"Cooperation between our business communities is well developed. Our automotive sectors, in conjunction with Austrade, are extending their successful trade facilitation program initiated in 2001. High-level business missions from both countries are expected to meet again later this year to explore commercial and trade opportunities. Since 1998-99, Australia's automotive exports to Indonesia have increased by more than 300 per cent.

"Meat and Livestock Australia and Livecorp are also working together with their customers in Indonesia's meat processing industry to build the capacity of Indonesian abattoirs, which will in turn raise Indonesia's ability to import Australian livestock.

"I look forward to discussing with business their concerns and experiences."

Indonesia is Australia's 10th largest trading partner. Services trade contributes $1.6 billion. Key Australian exports include education services, wheat, cotton, aluminium, meat and live cattle.

Contact:  Matthew Doman 02 6277 7420