Australia and Indonesia will soon sign a free trade agreement.This is expected to increase the value of the trade between the two countries.
For Indonesia, trade agreements with partner countries can increase the export value and increase market share. With such agreements in place Indonesia expects its exports of textile and textile products to increase three-fold. The cooperation agreement with Japan has helped increase Indonesia’s exports. Up to now lack of market access has been a constraint for the textile industry. Meanwhile, textile products from neighboring countries, such as Vietnam, can enter with a zero per cent import duty.
The trade deal has been eight years in the making and is expected to benefit Australian grain growers with Indonesia agreeing to import 5,00,000 tons of grain tariff free. The agreement should also benefit the Australian education sector, with universities and vocational training providers being given the green light to set up shop in Indonesia.
Indonesia wants greater access for Indonesians to work in Australia as well as support for its crude palm oil industry.