Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline to the House the importance of the strong economic relationship that exists between Australia and Indonesia, and will the Treasurer outline how this relationship will continue to strengthen and grow to the mutual benefit of our two nations?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Barker for his question. He is a very strong advocate on behalf of the businesses across his electorate—many of whom are engaged in the export sector—and he understands that more trade equals more jobs.

Today we had an historic address from the Indonesian President in this place. Indonesia is the world's largest Muslim nation. It's our second-nearest neighbour, and it's the world's third-largest democracy. And with a trillion-dollar economy, it will, by some estimates, become the fourth-largest economy in the world by 2045. Our relationship—Australia and Indonesia's—has gone from strength to strength over the years. I want to pay credit to John Howard and his government—with foreign minister Alexander Downer and Treasurer Peter Costello—because that government was there for Indonesia at their most difficult times: in 1997-98 with the Asian financial crisis and in 2004 with the tsunami. Australia was there for Indonesia. And Indonesia has been there for us: in 2009, with our Victorian bushfires and, more recently, with the provision of more than 40 personnel to help deal with the bushfires. Indonesia has been there for us.

Today, our two-way trading relationship is around $18 billion, and it's broad. It's across resources, agriculture, services, financial services, health and education and it will continue to grow with this comprehensive economic partnership, which will see 99 per cent of our exports into Indonesia get preferential access by this year. That's a very significant development. This is good news for not only the more than 2,500 Australians businesses that export to Indonesia but also the 350 Australian businesses that already have a presence in Australia. They are household names like Blackmores, Cochlear, Orica, Telstra, Woodside and other major Australian companies that employ thousands of Australians. As the Prime Minister has said, when we came to government we had free trade agreements covering 26 per cent of our two-way trading relationships. That is now up above 70 per cent and it will continue to grow. On this side of the House we understand that more trade equals more jobs, and nowhere is that clearer than in Australia's historic relationship with Indonesia.