AGRICULTURE is expected to be a big winner from the Indonesia-Australia Comprehensive Economic Partnership Agreement.

The agreement (also known as an FTA or FTP) was announced by trade minister Simon Birmingham, but agriculture minister David Littleproud was quick to enthuse over the concept.

“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.”


According to Minister Littleproud, all tariffs on beef and sheep meat are to be eliminated over five years with most eliminated immediately. They currently sit at 5%.

“The first 575,000 head of live male cattle are now duty free, growing to 700,000 over six years,” he said. “Sugar tariffs will be slashed from a maximum 12% to 5%.

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

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

Mr Littleproud said they were also increasing work and holiday visas for Indonesians from 1000 to 5000, helping producers who require seasonal workers.

 “Preferential deals will be put in place or duty will be removed for more than 99% of exports to Indonesia,” he said.

“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.”

Fast Facts:                                                                                       

•             Indonesia is Australia’s fourth largest agricultural export market, worth $3.35bn 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 $54bn in export earnings in 2017-18

•             Australia imported $833m of agricultural commodities from Indonesia in 2017. Source: Office of David Littleproud