Indonesia, Australia to sign trade deal next week: ministry

A long-awaited trade deal between Indonesia and Australia will be signed next week, Jakarta said yesterday, after months of diplomatic tension over Canberra’s contentious plan to move its embassy to Jerusalem. Indonesian trade minister Enggartiasto Lukita and his Australian counterpart Simon Birmingham are set to sign the multi-billion-dollar agreement in Jakarta on Monday, according to a trade ministry invitation sent to journalists.

The pact will include improved access for Australian cattle and sheep farmers to Indonesia’s 260 million people, while Australian universities, health providers and miners will also benefit from easier entry to Southeast Asia’s biggest economy. 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. Bilateral trade was worth US$11.7 billion in 2017.

The deal has been in negotiations since 2010 and was expected to be signed before the end of last year but it stalled when Prime Minister Scott Morrison proposed the relocation of Australia’s embassy to Jerusalem. Morrison first floated the shift in October, ahead of a critical by-election in a Sydney suburb with a sizeable Jewish population. Indonesia, the world’s most populous Muslim nation, was angered by the proposal.