PM Aims to Complete Indonesian Trade Deal
Canberra, MINA — Prime Minister Scott Morrison will leave on Thursday for Indonesia, where he will talk free trade with President Joko Widodo, AAP reported.
Free trade and closer economic cooperation between two of the world’s top 20 economies will be Prime Minister Scott Morrison’s goal in Jakarta.
On his first trip overseas as leader, Mr Morrison will conclude free trade talks with Indonesian President Joko Widodo in a meeting at the presidential palace.
The official free trade deal is still some months off signing, but this trip represents a chance for both sides to agree to a conclusion of negotiations.
“Our close collaboration across economic, security and strategic domains makes both countries stronger, safer and more prosperous,” Mr Morrison said.
“I look forward to working with Indonesia’s President to lay the foundation for the next stage of our bilateral partnership.”
Finalizaton of CEPA
Director for East Asia and Pacific Edi Yusuf said the two sides hoped to finalise negotiations on the Indonesia Australia Comprehensive Economic Partnership Agreement (CEPA) later on Wednesday.
The CEPA covers not just free trade pacts in goods, but also services and rules on investment as well as intellectual property, Mr Yusuf said.
The agreement will free up Indonesia’s university sector for Australian investors, allowing up to 67 per cent foreign ownership. Foreign investors are currently barred from majority ownership in an Indonesian university.
The deal, which has been discussed since 2012 and was initially due to be completed last year, should be signed later in 2018 after a legal vetting of documents.
Indonesian officials declined to divulge further details, but media reports said rules on farm goods, such as Australian cattle exports to Indonesia, could be revised.
Despite being close geographically, Australia was only the 14th-biggest buyer of Indonesian products in 2017, while Indonesia was the 10th-largest export destination for Australia, International Monetary Fund data shows.
Indonesian data shows two-way trade was worth $8.5 billion in 2017, with a deficit of $3.5 billion on Indonesia’s side.
Morrison and Widodo are also expected to sign a strategic comprehensive partnership and pacts on transport cooperation, creative economy efforts and cyber technology.
Mr Morrison will also meet with business leaders in an effort to drive greater links between Australia and Indonesia.
Former prime minister Malcolm Turnbull was due to go on the trip and also visit three other Asian nations, but those other visits were postponed when he was kicked out of office.
Mr Morrison will arrive in Jakarta on Friday morning. (T/RS5/RS1)
Mi’raj Islamic News Agency (MINA)
