Tinley primes WA for slice of Indonesia trade deal

Asian Engagement Minister Peter Tinley has talked up Western Australia’s business opportunities with Indonesia, as federal parliament is set to ratify a significant trade deal with the South-East Asian country.  

Earlier this week, a trade deal with Indonesia received bipartisan support to pass through the lower house of federal parliament, and it is expected to achieve the same result in the Senate by the end of the year.

Under the deal, 2 per cent of Indonesian goods and services coming into Australia will become tariff-free and, in return, 25 per cent of Australian goods and services into Indonesia will be tariff-free.

It covers a broad range of industries including agriculture, manufacturing, mining, education, tourism and financial services.

Mr Tinley told business leaders at an Indonesia Business Forum in Perth today that developing a better trade relationship between WA and Indonesia would create jobs and diversify the state’s economy.

"The rapidly growing economy of Indonesia is a prime example of how WA's economy and future prosperity is closely tied to Asia,” he said.

"Through activities such as the Indonesia Business Forum and my ministerial visit to Bali and Surabaya, the WA government is clearly conveying its plan to establish deeper connections across Asia and identify mutually beneficial trade and investment opportunities.”

Mr Tinley referenced Department of Treasury projections which claimed that closer trade with Indonesia could increase WA exports by more than $1 billion.

However, a document provided to Business News by spokesperson for Mr Tinley contained no direct reference to the figure stated by the minister.

Next week, Mr Tinley will travel to Bali to present WA's ‘Asian Engagement Strategy’ 2019-2030 at the Australia Indonesia Business Conference.

AirAsia Indonesia CEO Josephine Veranita Sinaga and Pertamina board of commissioners president Tanri Abeng were also among the speakers at the Indonesia Business Forum in Perth.

At the forum, Mr Abeng highlighted the need for urgency between Australia and Indonesia once the deal is ratified, and said education, agribusiness and tourism were key growth areas.

Pertamina is Indonesia's biggest state-owned oil and gas corporation.

The Indonesia Business Forum is part of Festival Indonesia at Elizabeth Quay from October 25 to 27.