Canberra, Jakarta get ball rolling on long-awaited trade deal


Indonesian President Joko Widodo and Australian Prime Minister Scott Morrison at a joint press conference in the Parliament building in Canberra today. Joko casts the two nations as would-be ‘Avengers’ – ‘forces of good’ uniting to defeat a ‘common enemy’ and shared challenges. – AFP pic, February 10, 2020.

AUSTRALIA and Indonesia today announced a 100-day plan to implement a long-awaited trade deal, as the two countries hail a “new beginning” for their sometimes troubled relationship.

The two G20 economies hope to deepen trade currently worth a modest US$12 billion (RM50 billion) a year, in a region increasingly dominated by China’s economic and military might.

Addressing Australia’s Parliament on a landmark state visit, Indonesian President Joko Widodo cast the two nations as would-be “Avengers” – “forces of good” uniting to defeat a “common enemy” and shared challenges, like protectionism, intolerance and climate change.

Joko, better known as Jokowi, said his visit marks “a new beginning of a new relationship” between the countries.

The 58-year-old former furniture manufacturer was sworn in for a second term late last year, promising to reduce widespread poverty as Indonesia becomes one of the world’s largest economies.

Negotiations over the Australia-Indonesia trade deal began in 2010, and it was ratified by Indonesia’s Parliament last week, ahead of Joko’s visit.

The agreement will eventually see the elimination of all Australian trade tariffs, while 94% of Indonesian duties will be gradually eliminated.

Greater access to the Australian market is expected to spur Indonesia’s automotive and textile industries, and boost exports of timber, electronics and medicinal goods.

The pact also includes improved access for Australia’s agriculture industry to Indonesia’s vast market of 260 million people.

Australian universities, healthcare providers and miners will also benefit from easier entry into Southeast Asia’s biggest economy.

In a joint public appearance with Joko in Canberra, Australian Prime Minister Scott Morrison outlined a 100-day “action plan” for implementation.

He called the long-delayed deal a “mutually beneficial arrangement, one that sees the cooperation of our economies for the strong growth that we will see over the next decade and beyond”.

The leaders are also eyeing talks aimed at making it easier for Indonesians to enter Australia, and a review of Australian travel advice for tourist destinations in Indonesia, he said.

Ties between Canberra and Jakarta have often been strained, including over Australia’s hard-line approach to asylum seekers.

The trade agreement was meant to be signed in 2018, but stalled when Morrison proposed the relocation of Australia’s embassy in Israel to Jerusalem – a move that angered Indonesia, the world’s most populous Muslim country.

Both countries have struggled to manage their relationship with a more assertive Beijing, too.

Last month, Indonesia sent jets and warships to patrol islands near the disputed South China Sea, accusing Chinese vessels of “trespassing”. – AFP, February 10, 2020.


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