A delegation of Australian horticultural industry representatives joined Australian minister for trade, tourism and investment, Steve Ciobo, on a visit to Jakarta for the Australia-Indonesia Business Week from 6-10 March.
The focus of the week was boosting bilateral trade between the two countries, with import permit restrictions on fresh produce a key focus for the horticulture industry delegates.
Indonesia’s leading fresh fruit and vegetable importers joined Australian assistant minister to the deputy prime minister Luke Hartsukyer in a discussion on the trading environment and where opportunities lie for Australian fresh fruit and vegetables.
Dominic Jenkin, CEO of the Australian Horticulture Exporters’ Association (AHEA), said the discussions were invaluable.
“Import permit restrictions have severely disrupted trade and AHEA hopes that the Indonesia-Australia Comprehensive Economic Partnership Agreement, currently under negotiation, is able to resolve some of these issues.” Jenkin said.
“This will be vital to improve the stability of the relationship, and give businesses the security to further invest in this market.”
Indonesia is the third largest market for Australian fresh fruit exports, according to AHEA, with volumes increasing 18 per cent from 2014/15 to 2015/16, valued at A$88m. Though shipments of citrus such as oranges and mandarins has declines 30 per cent, which AHEA said is primarily the result of challenging trade conditions.
The Indonesian government allows fresh fruit imports under a quota system whereby importers submit applications for the produce and volume they intend to import during a certain period.
Australia’s vegetable exports grew 6 per cent in volume to 5,000 tonnes, valued at A$6.5m in 2015/16, with shipments of carrots to Indonesia boosted due to a temporary block on imports from China. Once imports from China regained access, Australia’s volume of carrots dropped off.
“It is vital that Australia retains its discipline in this market and ensures that despite the difficulties and increasing international competition, that Indonesian consumers are consistently supplied with high quality Australian fresh fruit and vegetables,” said Jenkin.
The second Indonesia-Australia Business Week saw 130 Australian business representatives attend events across Jakarta, Malang, Surabaya, Lombok and Bali, building on the success of the inaugural event held in 2015.
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