Jakarta – The Indonesian parliament on Thursday ratified a landmark free trade agreement with Australia, after nearly a decade of negotiations.
The Indonesian House of Representatives passed the bill on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), days before President Joko Widodo was scheduled to visit Canberra.
Joko was scheduled to speak at Australian parliament on Monday.
Deputy parliamentary speaker Martin Manurung said at a plenary session “we have as the government’s goal to make Indonesia a global value chain become a reality.’’
Manurung said the Indonesian goods would be subjected to zero tariffs when entering Australia, while tariffs on 94 per cent of Australian goods imported to Indonesia would be eliminated gradually.
The deal would allow 99 per cent of Australian goods to enter Indonesia duty free or under significantly better preferential arrangements.
Under the deal, Australian universities would be able to operate in Indonesia and Australians will be able to have greater stakes in tourism, health and mining companies in the country.
The two countries are in the world’s top 20 economies but are not each other’s top 10 trading partners, despite being neighbours.
Total bilateral trade between Indonesia and Australia was worth 8.6 billion U.S. dollars in 2018.
Negotiations for the pact started in 2010 and concluded in August 2018.
The signing was delayed after Prime Minister Scott Morrison said in late 2018 that Australia was considering moving its embassy in Israel from Tel Aviv to Jerusalem.
Indonesia, the country with the world’s largest Muslim population, is a strong supporter of the Palestinian cause and has warned against such a move because it could undermine the Middle East peace process.
(dpa/NAN)