Australian Minister for Trade, Tourism and Investment Simon Birmingham said in an official statement that after his discussions earlier this week with his Indonesian counterpart Agus Suparmanto, the two sides agreed to make the deal effective from July 5.
Birmingham said the landmark agreement would enhance export opportunities and deliver significant benefits for Australian farmers, businesses and investors.
Securing a trade agreement with Indonesia has been a longstanding objective of the Australian government, to further strengthen the strategic partnership between the two nations and further expand the choices available for Australian exporters, he said.
The minister added that this is the most comprehensive bilateral trade agreement Indonesia has ever signed, and will give a competitive edge to Australian exporters, particularly at a time when many are doing it tough as a result of the COVID-19 pandemic.
Indonesia and Australia started the IA-CEPA discussions in 2010 and the deal was finally signed in Jakarta last year after several postponements.
The IA-CEPA becoming effective will mean that 99 percent of Australian goods (by value) will enter Indonesia duty-free or under significantly improved preferential arrangements.
The pact will help improve access for Australian livestock farmers to the Indonesian market of 260 million people, while Australian universities and health providers will also benefit from easier entry into Southeast Asia’s biggest economy.
Meanwhile, greater access to the Australian market is expected to spur Indonesia's automotive and textile industries, and boost exports of wood, electronics and medicine.