THE Indonesia-Australia Comprehensive Economic Partnership Agreement will turbo-charge Australian exports, federal agriculture minister David Littleproud says.

Under the agreement that took effect on 5 July:

  • Almost 100% of Australian goods exported to Indonesia will enter duty free or under significantly improved and preferential arrangements.
  • This agreement will grow the $2.5 billion export market even further.
  • By 2050 Indonesia is projected to be the fourth largest economy in the world.

A new trade era with one of the world’s fastest growing economies begins today, with the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) taking effect.

“By 2050 Indonesia is projected to be the world’s fourth largest economy, with per person consumption predicted to be greater than China for key commodities such as cereals and beef,” Mr Littleproud said.


“With many restrictive tariff requirements for our exporters being eliminated under this agreement, Indonesia represents a game-changing opportunity for our farmers.

“Securing this breakthrough with our sixth largest agricultural export market will help turbo charge trade opportunities in both countries and propel our post pandemic recovery.”

IA-CEPA highlights include:

  • A quota of 575,000 live Australian male cattle per year will enter Indonesia duty free. The quota will increase to 700,000 per year by 2026. Previously, live male cattle had a 5% tariff.
  • There will be a 2.5% tariff cut for frozen beef, which previously had a 5% tariff. After five years the 2.5% tariff will be eliminated.
  • Australian exporters of feed grains such as wheat, barley and sorghum will enjoy duty free access for up to 500,000 tonnes per year into Indonesia. The quota will increase by 5% a year.

Horticulture exporters will also benefit, with reduced tariffs and improved access across a range of commodities including citrus, carrots and potatoes.