After nine years of negotiations, Indonesia and Australia have finally signed a free trade agreement. Thanks to this free agreement, Indonesia targets textile exports to Australia to increase 100 per cent in the next two years. Some of these textile goods are socks and scarves. Australia eliminated around 6,474 tariff posts to zero per cent when the free trade agreement was implemented. The agreement is expected to be a good deal for Indonesia in terms of growing its economic opportunity and investment. It is also seen as an opportunity for Australian education providers, health and financial services providers as well to be able to have easier access into Indonesia, better regulatory conditions to do business. In addition to Australia’s agricultural and health sectors, the deal is expected to deliver major benefits for the education industry, clearing the way for Australian universities to open campuses in Indonesia.

The agreement could see Australia’s major carrot and potato growers back on Indonesian shelves almost immediately. Indonesia with a large population has good demand for Australian goods. The trade deal is expected to benefit Australian grain growers with Indonesia agreeing to import 5,00,000 tons of grain tariff free. Indonesia wants greater access for Indonesians to work in Australia as well as support for its crude palm oil industry.