​Media release

Agriculture a winner of Indonesia trade deal

4 March 2019

  • Indonesia-Australia Comprehensive Economic Partnership Agreement signed today
  • Increases livestock, beef and sheep meat, grains, sugar, dairy and citrus exports
  • Builds on the long-standing trading relationship Australia shares with Indonesia
Australian farmers are big winners in the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which was signed today.

Minister for Agriculture and Water Resources David Littleproud said once in force the deal would help farmers sell more product. 
 
“Our farmers will export more produce because of this deal,” Minister Littleproud said.

“We’re giving our farmers more options and creating competition for Australian produce.

“Beef and sheep farmers are big winners – tariffs will disappear and more cattle will be exported.

“All tariffs on beef and sheep meat will be eliminated over five years with most eliminated immediately. At the moment they sit at 5 per cent.

“The first 575,000 head of live male cattle are now duty free, growing to 700,000 over six years.

“Sugar tariffs will be slashed from a maximum 12 per cent to 5 per cent.

“The first 500,000 tonnes of grain per year will also be duty free and that will grow by 5 per cent a year.

“Improved duty free quotas will also be put in place for citrus and horticultural products. 

“Also we’re increasing work and holiday visas for Indonesians from 1000 to 5000 which makes a big difference for producers who need seasonal workers. 
 
“Preferential deals will be put in place or duty will ​be removed for more than 99 per cent of exports to Indonesia. 
 
“Since coming to government, the Coalition has delivered six major free trade agreements.

“These are key to realising our ambition of a $100 billion agricultural industry by 2030.

“It will help boost farm gate prices, driving regional growth and jobs.”

Fast Facts:                                                                                       
  • Indonesia is our 4th largest agricultural export market, worth $3.35 billion in 2017
  • In 2017, Australia’s top exports to Indonesia were wheat ($1.3b), live cattle ($602m), sugar ($328m) and beef and veal ($284m)
  • Agriculture, fisheries and forestry totalled $54 billion in export earnings in 2017-18
  • Australia imported $833 million of agricultural commodities from Indonesia in 2017
  • Indonesia is on track be the world’s 5th largest economy by 2030