Indonesia trade deal set to support producers

Member for Barker Tony Pasin says the deal is a big win for producers and exporters.
Member for Barker Tony Pasin says the deal is a big win for producers and exporters.

A landmark trade agreement between Australia and Indonesia will provide local producers with greater market access and opportunities within the region.

The deal will benefit many of Barossa’s agricultural sectors including:

  • Cattle – Duty free access from 575,000 cattle in one year, growing 4 per cent each year to 700,000 by year six
  • Frozen beef and sheep meat – Tariff cut to 2.5 per cent immediately and again to 0 per cent in five years
  • Feed grains – duty free access for 500,000 tonnes in one year, volume 5 per cent each year
  • Dairy – Immediate or progressive tariff elimination of remaining tariffs on dairy lines
  • Citrus – Progressive tariff elimination for mandarins; duty-free access for oranges, lemons
  • Vegetables – Progressive elimination of tariff on carrots; immediate reduction on tariffs for potatoes
  • Honey – Progressive elimination of 5 per cent tariff over 15 years

Indonesia was Australia's largest market for wheat ($1.4 billion) and live animals ($602 million) in 2017 and this trade deal aims to open new markets and opportunities for businesses and primary producers.

Member for Barker Tony Pasin said this deal with have a positive flow-on effect on rural job creation.

“This agreement will open up new pathways and make Australian businesses more competitive within the Indonesian market and with other trading partners in the region,” Mr Pasin said.

“It will allow producers to take advantage of Indonesia’s growing economy particularly in our agricultural industries.

“This will not only help local businesses to grow into overseas markets, but with business growth also comes the creation of more local job opportunities,” Mr Pasin said.

In addition to tariff reductions the deal includes guaranteed automatic issue of import permits for products such as live cattle, frozen beef, sheep meat, feed grains, mandarins, oranges, lemons, carrots, potatoes.

Australia's two-way trade with Indonesia was worth $16.5 billion in 2017, making Indonesia our 13th largest trade partner.