The Republic of Indonesia is the largest archipelago in the world, comprising 17,508 islands stretching along 5,120 kilometres from East to West, and 1,760 kilometres from North to South. The islands cover a land area of around 2 million square kilometres and territorial waters nearly four times that size.
Indonesia continues to offer export potential. Merchandise exports to Indonesia increased by 5 per cent in 2005 year-on-year. Over 400 Australian companies operate in Indonesia.
Australia is encouraging Indonesia to maintain liberalised trade and investment regimes.
Australia is working with Indonesia within the Cairns Group of Agricultural Fair Traders to increase liberalisation in international trade in agricultural products during the current round of World Trade Organization negotiations.
The Indonesian Public and Private Sector Partnership for Infrastructure Development Summit was held in Jakarta on 17 and 18 January 2005. Projects offered included gas pip There are few bilateral trade irritants with Indonesia. The Australian Government takes every opportunity to seek reductions in tariffs and remedies for non-tariff barriers affecting Australian exports.
The Australian Government is encouraging Indonesia to consider shifting the basis for assessing luxury tax on foreign cars from engine size to import value. Australia hosted a visit by Indonesian automotive taxation officials in March 2004 to examine our luxury car tax system.
The Australian Government has requested that Indonesia remove the tariffs on horticulture products which were increased on 1 January 2005 as part of Indonesia’s broader tariff harmonisation processelines, electricity, telecommunications, rail, seaport, airport, water and toll roads