Indonesia free trade agreement: Bill Shorten defends union pitch

Bill Shorten, under increasing union pressure to renegotiate a $35bn pact with Indonesia, says he will prioritise local jobs.

Opposition Leader Bill Shorten says the Indonesia deal is a ‘Labor project’. Picture: AAP

Bill Shorten says he still backs a free trade deal with Indonesia despite growing union pressure to renegotiate the agreement. But the Labor leader does say he will prioritise Australian jobs.

Australian unions stepped up their campaign against the deal — to be signed this week in Jakarta — over fears it will increase the number of foreign workers in Australia.

The Indonesia Australia Comprehensive Economic Partnership Agreement is forecast in a previous feasibility study to be worth about $35 billion to the two countries’ economies in coming years.

The Opposition Leader said today that the Indonesia deal was a “Labor project” and that the unions were “entitled to have their view.”

“It was Labor who got the Indonesian free trade agreement started. It is a Labor project. We

will have to study the detail as you should do,” he said in Melbourne today.

“We want to make sure Australian jobs are prioritised. We’re positive, from what we have seen so far.

“The unions are entitled to have their view on matters. I will look at the total national interest.”

Trade Minister Simon Birmingham rejected claims by the unions in today’s Australian and accused them of “blatant scaremongering”.

“The fact that — despite all the commentary in the last few months — we are both proceeding to sign this agreement is a real demonstration of the maturity of the relationship; that we can have areas where we may not always be in complete agreement, but that need not undermine the potential for strong bilateral ties and co-­operation,” he said.

Labor trade spokesman Jason Clare pointed out that Labor commenced the negotiations with Indonesia, and said trade with Australia’s neighbour was “massively underdone”. But he also said: “we look forward to seeing the details of this agreement” when asked if he would support it.

Additional reporting: Primrose Riordan