Key issues:

  • The Australian and Indonesian Governments recently entered into a free trade agreement, formally known as the Indonesia-Australia Comprehensive Economic Partnership Agreement.
  • The IA-CEPA is projected to result in 99% of Australian goods (by value) entering Indonesia duty- free or under improved preferential arrangements by the year 2020.
  • Indonesia will now guarantee automatic issue of import permits for key products such as live cattle, frozen beef, sheep meat, feed grains, citrus products, carrots and potatoes.

The Australian and Indonesian Governments recently entered into a free trade agreement, formally known as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). With a population of approximately 270 million and increasing levels of economic growth, Indonesia is developing its potential as one of the world’s largest economies and currently sits as Australia’s fourth largest agricultural export market.

According to the Australian government, the IA-CEPA will result in 99 percent of Australian goods (by value) entering Indonesia duty- free or under improved preferential arrangements by the year 2020.

Relevantly for the Australian agricultural industry, Australian producers of grains, live cattle and meat, dairy and horticulture look set to benefit from lower tariffs and improved access to Indonesian markets.

Additionally, Indonesia will now guarantee automatic issue of import permits for key products such as live cattle, frozen beef, sheep meat, feed grains, citrus products, carrots and potatoes.

A table outlining the details of the key outcomes of the IA-CEPA in relation to Australian agriculture is provided below.