The Free Trade Agreement (FTA) between Indonesia and Australia is a landmark deal that has opened up new trade opportunities between the two countries. Signed in March 2019, the FTA is a comprehensive agreement that covers a range of sectors, including agriculture, education, and services.
One of the key benefits of the FTA is the elimination of tariffs on goods traded between the two countries. This means that Australian businesses can now export a range of products to Indonesia, including beef, dairy, and citrus fruits, without facing any tariffs. Similarly, Indonesian businesses can now export a range of products to Australia, including textiles, automotive parts, and furniture, without facing any tariffs.
Another important aspect of the FTA is the liberalization of investment rules between the two countries. Under the FTA, Australian businesses now have greater access to Indonesia`s markets, particularly in sectors such as healthcare, mining, and tourism. Similarly, Indonesian businesses now have greater access to Australia`s markets, particularly in sectors such as education, energy, and infrastructure.
The FTA is also expected to lead to an increase in bilateral trade between the two countries. According to the Australian Department of Foreign Affairs and Trade, the FTA could increase Australia`s exports to Indonesia by up to $5.9 billion and Indonesia`s exports to Australia by up to $4.4 billion by 2030. This is expected to create new jobs and boost economic growth in both countries.
In addition to these economic benefits, the FTA is also expected to promote greater cooperation between Indonesia and Australia in areas such as education, science, and technology. This includes increased collaboration between universities and research institutions in both countries, as well as greater opportunities for students and researchers to study and work abroad.
Overall, the FTA between Indonesia and Australia is an important milestone in the two countries` relationship. By opening up new trade opportunities and promoting greater cooperation, the FTA is expected to strengthen ties between the two countries and create new opportunities for businesses and individuals in both Indonesia and Australia.