"We highly welcome this comprehensive economic cooperation, because it serves as a momentum to spur mutually beneficial economic growth for the two countries," he noted in a written statement released on Tuesday.
Indonesian Trade Minister Enggartiasto Lukita and Australian Minister of Trade, Tourism and Investment Simon Birmingham signed the IA-CEPA in the presence of Indonesian Vice President Jusuf Kalla.
Indonesia`s exports to Australia will increase as Australia has committed itself to eliminate import duties to 0 percent for all postal tariffs.
Among the Indonesian commodities whose exports could be increased are automotive products (particularly electric and hybrid cars); wood and its derivatives, including furniture; textiles and textile products; tires; communication instruments; medicines; and electronics.
IA CEPA provides easier local content qualifications for Indonesia`s electric and hybrid cars, so that the Indonesian automotive industry can export electric and hybrid cars without having to build all production technology and facilities from zero.
"The manufactured goods that we are trying to spur their exports are textiles, clothing and footwear. Today, Indonesia`s key exports to Australia include furniture, rubber products, processed chemicals, foods and beverages, textiles, and electronics," he pointed out.
Reporting by Sella Panduarsa Gareta