Home Business Politics Australia and Indonesia set to sign trade pact

Australia and Indonesia set to sign trade pact

Eight years of negotiation later.

Jack Derwin

Digital Journalist, Your Money

It’s the trade deal eight years in the making and on Monday afternoon it could finally be signed by Australia and one of its closest neighbours, Indonesia.

The bilateral agreement, the subject of almost a decade of hot-and-cold negotiations between the two countries, will be Australia’s largest in years when it is signed.

“Indonesia is currently the 16th largest economy in the world but is forecast to grow to potentially become the fourth biggest economy [and] it’s right on our doorstep,” trade minister Simon Birmingham told Nine’s Today.

The deal could be worth as much as $35 billion to the two economies in coming years according to some estimates and is set to predominately benefit cattle farmers, as well as the mining, tourism, transport and education sectors.

Most significantly, it will benefit farmers with tariffs immediately halved on frozen beef and sheep meat, while duty tax will be lifted on live cattle.

That’ll come as sweet relief to Queensland farmers, many of whom have recently suffered drought or floods.

Australian universities will also be allowed to operate in Indonesia for the first time.

Just months ago any kind of agreement looked off the table after Prime Minister Scott Morrison’s announced the government was considering moving the Australian embassy in Israel from Tel-Aviv to Jerusalem.

The controversial move would have followed the lead of US President Donald Trump and put Indonesia, an overwhelmingly Muslim country, offside.

However, it appears that’s now been put aside with ministers meeting in Jakarta to finalise the deal.

Watch the full segment above.

Read more: Here’s why ending the trade war could hurt Aussie farmers
More: RBA flags 3 risks to Aussie prosperity
More: The truth about China’s coal ban

Get more news, analysis and insights straight to your inbox!

By clicking subscribe, you accept our privacy policy.