Indonesia will join a regional free trade agreement involving New Zealand from early next year, Trade Minister Tim Groser announced today.
In a joint statement, Mr Groser and his Australian counterpart Craig Emerson said Indonesia had completed its domestic procedures to enable the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) agreementto take force there.
"This means that from January 10, 2012, businesses on both sides of the Tasman will be able to capitalise on the FTA's considerable opportunities for mutually advantageous trade with Indonesia - one of our most important trading partners," Mr Groser said.
Indonesia has the world's fourth largest population, and is the largest economy in South East Asia, accounting for more than a third of ASEAN's gross domestic product.
Under the agreement, by 2015, New Zealand exporters will receive tariff-free treatment in Indonesia on more than 90 per cent of tariff items, compared with only 11 per cent now.
