Indonesia implements free trade agreement (FTA) between ASEAN and Australia-New Zealand starting January 10, 2012, becoming the last ASEAN country to actualize the FTA signed in November 2011.
Iman Pambagyo, Director of ASEAN Cooperation at Ministry of Trade, said the agreement is expected to raise trades value of each country. “The potential is quite significant since in addition to the zero percent tariff, we can gain other facilities from the agreement," he told IFT, Tuesday. Based on the agreement, Indonesian several flagship export products will be imposed with zero percent to 17.5 percent tariff when entering Australia. The products include meat, fish, coffee, tea, spice, agro and chemicals, pharmaceutical goods, rubber and rubber products, woods, paper and furniture products. Meanwhile, the products coming to New Zealand with zero percent tariff include live animals, fruits, coffee, tea, cereal, spice, oily ore, ceramic and glass, electronics and automotive. Other products with five to 17.5 percent tariff are agro and chemical, meat and processed fish, flour, wood and wood products, textile and textile products, iron and steel, vessels and floating objects, furniture and rubber products. “The import from Australia and New Zealand include dairy products such as packaged skimmed and whole milk powder for local processing industries,” Iman said. Several processing companies which use products from the two countries include PT Fonterra Brands Indonesia, PT Nestle Indonesia, PT Kraft Foods Indonesia, PT Danone Indonesia, PT Indofood Sukses Makmur Tbk (INDF), PT Indolakto, PT Ultrajaya Milk Industry & Trading Co Tbk (ULTJ) and PT Unilever Indonesia Tbk (UNVR). Total export to Australia arrived at US$ 4.52 billion in January-October 2011, higher than the actual US$ 4.24 billion in 2010, according to the Ministry’s data. Oil and gas export reached US$ 1.90 billion in the period, while non-oil and gas attained US$ 2.62 billion. Indonesia-Australia's trade balance in January-October 2011 generated US$ 270 million surplus to Indonesia, following US$ 4.25 billion Australian total imports. However, Indonesia suffered a deficit in trade balance with New Zealand. Total export to the country stood at US$ 313.83 million in January-October 2011 lower than 2010 at US$ 396.24 million. Meanwhile, total imports from New Zealand reached US$ 625.20 million, generating US$ 311.37 million deficit. http://en.indonesiafinancetoday.com/read/15690/Indonesia-Joins-ASEAN-Australia-New-Zealand-FTA
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