Bogor: The Australia-Indonesia free trade deal will be a “massive
win-win” for both nations, Prime Minister Scott Morrison says, as it
will bring the two nations closer together, deepen strategic ties and
strengthen economic growth.
Australian Prime Minister Scott Morrison in Indonesia on Friday.
The long-awaited deal, which has been years in the making and was due
to be signed last December, could deliver a big boost to Australian
universities and health providers by making it easier for them to set
up operations in Indonesia.
Aussie farmers are also expected to receive certainty in the form of
annual quotas which will determine the volume of beef, live cattle,
potatoes and other agricultural products that can be exported to
Indonesia.
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Speaking ahead of his first meeting with Indonesian President Joko
“Jokowi” Widodo, just a week after taking over as prime minister from
Malcolm Turnbull, Mr Morrison also reassured the leaders of Pacific
island nations that they could “count on me” – despite him missing the
Pacific Island Forum on Nauru next week.
And at a time when China’s rising economic influence and military
presence in the Asia-Pacific is causing growing concern, Mr Morrison
reassured Beijing that Australia's deepening strategic relationships
with nations including Indonesia, Singapore and Vietnam, were no cause
for concern.
“This is a skills transfer and sharing [trade deal]. This is building
up capabilities within economies. It is about using Australia's
strengths to build in Indonesia but at the same time provide
opportunities for Indonesia to tap into what is happening in
Australia,” he said.
Australian Prime Minister Scott Morrison speaks to students at SMPN 2 Babakan Madang High school in Jakarta, his first overseas trip as PM.
“It is much more than a trade deal we are talking about today. It is
not a transaction. This is a partnership.”
“The economic relationship is where we are underdone and it is the
economic relationship that needs more balance, more grunt, more
investment, more engagement.”
Mr Morrison said he was disappointed to miss the Pacific Island Forum
– China’s growing influence in the Pacific has also become a concern
for some nations in the region – and that “in normal circumstances I
would be there”.
Relations with China under Mr Turnbull turned frosty as the government
passed new foreign interference laws and took a harder line with
Beijing. Mr Morrison emphasised the importance of Australia’s “shared
prosperity” with the economic power house.
Mr Morrison and Mr Joko were due to meet at the Presidential
Palace in Bogor on Friday and announce the formal end of negotiations
on the trade deal.
The pair are also expected to announce the relationship between the
two nations will be upgraded from "comprehensive partnership" to
"comprehensive and strategic partnership".
Concluding a trade deal: posters of Australian Prime Minister Scott Morrison (left) and Indonesian President Joko Widodo.
The Comprehensive Strategic Partnership declaration will "highlight
five pillars": the economy, security cooperation including cyber
security and combating terrorism, maritime cooperation,
people-to-people contact and regional cooperation. Australia has
recently reached similar agreements with Singapore and Vietnam.
Sofyan Wanandi, a senior official in the office of Indonesian Vice
President Jusuf Kalla, told Fairfax Media the finalisation of the free
trade agreement was “very good news for both countries. Negotiations
took a very long time, it had gone [for] more than five years”.
“We [Indonesia] decided to open our education sector to foreign
investment. So Australian universities can invest in Indonesia but
they have to work together with Indonesian universities.”
“It means we can improve the quality of our human resources. Also,
Australian hospitals can enter Indonesia but limited only to specific
services [such] as in chronic diseases.”
“Also we agreed on annual quota for live cattle, beef and other
Australian agricultural product like potatoes.”
It’s understood the deal will allow, for the first time, Australian
universities to set up campuses in Indonesia and retain a majority
ownership of up to 67 per cent.
At present, the limit on foreign ownership of universities is 40 per cent.
For Indonesia, one of the main benefits will be most goods exported to
Australia will have tariffs removed, including in the textile and
garment sector.
“We couldn’t compete with Vietnam in the Australian market because
Vietnam already has [an] FTA with Australia.”
Universities Australia Chief Executive Catriona Jackson said greater
access for Australian universities to operate in Indonesia would
deepen ties between the two countries.
“If Australian universities open campuses in Indonesia, this would
make the possibility of an international, world-class education
accessible to many more Indonesian citizens.”
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