Australia and Indonesia Agree to Closer Co-Operation in Resources and Infrastructure

Australian business have expressed their strong interest in increased participation in the development of Indonesia's resources and infrastructure sectors, Deputy Prime Minister and Minister for Trade, Mark Vaile said today following the inaugural Australia-Indonesia Policy Dialogue in Canberra.

The Dialogue launched by Mr Vaile and his Indonesian counterpart, Dr Mari Pangestu at annual bilateral trade talks, brought together leading Australian and Indonesian resources and infrastructure business representatives.

"The Policy Dialogue is a key feature of the Trade and Investment Framework I signed with Indonesia last year and represents a practical effort to bring business and policy leaders together to identify ways to increase commercial activity in priority sectors," Mr Vaile said.

The Dialogue was held in conjunction with the 6th Australia-Indonesia Trade Ministers Meeting where Ministers discussed a range of bilateral, regional and multilateral trade issues.

"We agreed on the importance of continuing to work closely together on bilateral commercial issues to ensure Australian and Indonesian business and consumers benefit from a competitive and business-friendly environment.

"While two-way trade with Indonesia grew by 2 per cent in 2005 to A$8.8 billion, there is scope to build on this in key sectors" Mr Vaile said.

Mr Vaile said a number of market access issues were raised with his Indonesian counterpart including ongoing Australian industry concerns with Indonesia's increase in horticultural tariffs last year. Australia and Indonesia also discussed co-operation to ensure Australia's food standards requirements were understood.

Mr Vaile recognised the Indonesian Government's efforts to progress its economic reform agenda and improve the investment climate and encouraged continued action in order to attract Australian investors.

"Australia is committed to assisting Indonesia's economic reform efforts and we are already providing a range of capacity building and technical assistance in areas such as fiscal policy, tax administration, debt management and trade policy," Mr Vaile said.

Ministers also expressed their disappointment at the suspension of the WTO Doha Round and underlined the important role the Cairns Group could play in finding a solution to the current impasse.

"We also underlined our commitment to achieving a comprehensive, high-quality ASEAN-Australia-New Zealand Free Trade Agreement that would provide added impetus to the already strong trade and investment linkages between the two countries," Mr Vaile said.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555