An agreement that will boost trade and investment between Australia and Indonesia has been welcomed by Minister for Resources and Northern Australia Matt Canavan.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will be formalised later this year but the leaders of both countries have announced the substantive conclusion of negotiations.

“This agreement will open new markets and opportunities for businesses from both countries. Northern Australia in particular has long-standing economic and cultural ties with Indonesia and this agreement will build on these ties to boost trade and investment,” Minister Canavan said.

“The deal will build on the ASEAN-Australia-New Zealand Free Trade Agreement and provide improved access for more than 99 per cent of tariffs faced by Australian manufactured goods and resources exported to Indonesia.

“In delivering considerable new commercial opportunities for Australian industry, we will see greater access for our iron, steel and copper products, among others.

“In particular, the agreement will encourage stronger two way investment, creating opportunities in Northern Australia across a range of sectors, including tourism, mining and energy and related services.

“Australian producers will also have easier access to Indonesian goods, creating stronger connections between Australia and Indonesian business.

“Both countries will benefit from the agreement which is set to promote increased prosperity in the region.”