Australia's free trade agreement with Indonesia to provide export boost

  • Joint media release:
  • Senator the Hon Simon Birmingham, Minister for Trade, Tourism and Investment
  • The Hon Andrew Gee, Minister  for Decentralisation and Regional Education, Minister Assisting  the Minister for Trade and Investment

New export opportunities for Australian farmers, businesses and investors will begin to flow from today with the start of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Federal Trade Minister Simon Birmingham said this landmark trade agreement with Indonesia would provide an export boost for Australian farmers and businesses who have been doing it tough during the COVID-19 crisis.

“The start of IA-CEPA will be a major opportunity to start a new economic chapter with one of our closest neighbours and will help to further strengthen the strategic partnership between our two nations,” Minister Birmingham said.

“This is the most comprehensive bilateral trade agreement Indonesia has ever signed, and will give our exporters a competitive edge in what is one of the fastest growing economies in the world.

“With a population of over 260 million and a growing middle-class, Indonesia presents huge opportunities for our exporters across a range of sectors including agriculture, education, tourism, energy and mining services.

“There are major wins across the board for Australian farmers – producers of grains, live cattle and meat, dairy and horticulture, and many other products will benefit from lower tariffs and improved access to Indonesian markets.

“For example, our grains growers will now be able to export 500,000 tonnes of feed grains including wheat and barley into Indonesia tariff free. This will provide a significant boost for the Australian grains industry, building on our substantial milling wheat exports.

“Australian services suppliers and investors will also benefit through greater certainty for entry and operation in the Indonesian market, including guaranteed levels of Australian ownership in a range of sectors.

“With one in five jobs trade related, enhancing opportunities for our exporters, with key trading partners such as Indonesia will be crucial to reducing job losses arising from the COVID-19 pandemic and a critical part of our ultimate economic recovery.”

Minister Assisting the Minister for Trade and Investment Andrew Gee said the Indonesia-Australia Comprehensive Economic Partnership Agreement was a big win for country exporters looking to get their high-quality products out into the global market.

“Indonesia is our 13th largest export market and there is huge potential for the relationship to grow. The IA-CEPA will provide big ticket items for Australian exporters, including preferential access into the Indonesian market for our cattle farmers and citrus producers,” Minister Gee said.

“In these tough times, on the back of the droughts, bushfires and the COVID-19 pandemic, IA-CEPA 's entry into force is great news for country Australia.

“I 'm looking forward to working closely with exporters around country Australia to help them take advantage of the exciting new opportunities we have secured in the Indonesian market.”

Under IA-CEPA, 99 per cent of Australian goods (by value) will enter Indonesia duty-free or under improved preferential arrangements.

For more on the Indonesia-Australia Comprehensive Economic Partnership visit:

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