Australia, Indonesia bilateral trade deal likely in March

The Australian government is poised for the likely March sign-off of a bilateral trade deal with Indonesia.

The Scott Morrison government is set to confirm the trade and investment deal. Picture: James Elsby/AAP

There are new expectations Australia and Indonesia will sign their bilateral trade deal in March.

The deal was delayed by the Morrison government’s review of the relocation of the Australian embassy in Israel.

Prime Minister Morrison ultimately decided against the move, but instead went with a compromise position of recognising West Jerusalem as the capital.

Indonesia has close ties to the Palestinian authorities and does not recognise Israel.

Trade Minister Simon Birmingham confirmed the government was anticipating the deal could be finalised next month.

“I’ve continued to have very constructive discussions with a number of Indonesian Ministers in the last few months and am pleased to be finalising arrangements that we hope will achieve a March signing,” he told The Australian.

“Indonesia is the third largest democracy in the world with a fast growing economy, making the strengthening of our ties both strategically and economically important”

“This a strong deal for both our countries, which will increase the two way flow of trade and investment, creating more opportunities for farmers, businesses and economic development.”