Date set for new trade deal
The Australian and Indonesian trade ministers say they will have bilateral trade deal in place by November.
Speaking in Jakarta after the latest round of talks, Trade Minister Steve Ciobo said the deal would leave both Indonesia and Australia in a stronger position.
A previous deal is coming into force that will see Australia dump tariffs on pesticides and herbicides in exchange for Indonesia reducing tariffs on imported raw sugar.
The new deal is known as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
Detailed analysis of negotiations has been impossible because only limited details have been made public.
“Clearly though, negotiation by virtue of the definition of the word means that there is compromise on both sides,” Mr Ciobo said during a joint press conference in Jakarta.
The Trade Minister tariffs on Australian skim milk powder were an example of how less protectionism could assist both nations.
“The consequence would be that skim milk powder would potentially be cheaper here in Indonesia,” the Minister said.
“And the reason that is important is because Indonesia uses skim milk powder to make sweetened condensed milk which Indonesia then exports.”