Indonesia-Australia FTA Feasibility Study

Overview

In August 2007, Australia and Indonesia commenced a joint feasibility study to examine the merits of a bilateral free trade agreement (FTA).

The announcement followed a recommendation by members of the Australia-Indonesia Trade and Investment Framework Experts Group in Jakarta in June 2007 that the two countries consider the costs and benefits of an FTA.

The feasibility study, which includes an independent economic modelling component, is examining the potential impact on Australia and Indonesia of an FTA, including implications for economic growth, trade, investment, commercial linkages and competitiveness. The study is expected to be completed around the end of 2008.

Indonesia is a very important economic partner and regional neighbour for Australia. Two-way trade in goods and services reached A$10.2 billion in 2007, making Indonesia our 13th largest trading partner. Indonesia is an important and growing export market for Australia, ranked 11^th overall. Australian investment in Indonesia is worth an estimated $3.1 billion and more than 400 Australian companies are operating in Indonesia in sectors including mining, construction, finance, food and beverage and transport.

The decision to examine the merits of an FTA builds on our already strong and broad-ranging bilateral relationship. The feasibility study provides an opportunity to identify barriers to trade and investment and inform consideration of the benefits and costs of a possible future FTA. Any decisions taken to negotiate an FTA with Indonesia would be a separate matter for both governments to determine.

Public consultations were completed in December 2007 and a number of written submissions have also been received from State and Territory Governments, Australian business, industry groups and other stakeholders through a public call for submissions.

Submissions

The Indonesia-Australia FTA Feasibility Study welcomes information from Australian industry on the specific barriers they face in the Indonesian market. Submissions need not be lengthy - a short e-mail outlining details of barriers companies face in Indonesia would be useful.

General guidance on preparing submissions

Submissions or comments may be lodged electronically to indonesia.ftastudy@dfat.gov.au or by post at the following address:

Indonesia-Australia FTA Feasibility Study
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent
Barton ACT 0221

Additional Information

Background Paper for Industry Consultations October 2007

Doing Business in Indonesia

For more information on doing business in Indonesia and about specific export opportunities, go to the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.

Contact Us

For further information on the Indonesia-Australia FTA Feasibility Study, please contact DFAT's Indonesia-Australia FTA Feasibility Study team:

Email: indonesia.ftastudy@dfat.gov.au

Indonesia-Australia FTA Feasibility Study
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221

For media enquiries, please call DFAT's Media Liaison Section: +61 2 6261 1555.