The Indonesia-Australia Comprehensive Economic Partnership Agreement, or IA-CEPA, was signed in Jakarta by the respective trade ministers, Simon Birmingham and Enggartiasto Lukita, signalling a new step in the 10-year talks.
WA Asian Engagement Minister Peter Tinley said petroleum was WA’s biggest merchandise export to Indonesia (47 per cent) followed by wheat (15pc).
Total merchandise exports from WA to Indonesia in 2017-18 were valued at $2.5 billion, well above the annual average of $1.6b in the previous 10 years.
WA accounted for 38pc of Australia’s merchandise exports to Indonesia in this same period.
Indonesia has a population of 95 million people under the age of 30.
Most of them use a smartphone, are tech-savvy and are keen to learn, progress and see their country develop into becoming a member of the G7, as predicted, by 2050.
“This is a significant deal, not only for Australia, but also for WA which has a strong Sister State relationship with East Java," Mr Tinley said.
“In the past, WA’s relationship with Indonesia could be described as ‘transactional’ - but we are looking to advance and expand on that purely economic position and develop an even more mature and enduring relationship.
“Trade links are always important. But as we have demonstrated through visits by a number of Indonesian delegations in the past year, WA is also keen to pursue improved cultural ties and to collaborate in areas such as health, sport and education.
“The importance of this major trade agreement cannot be underestimated. Reducing non-tariff barriers to trade and simplifying paperwork will help up to 99 per cent of Australia’s goods exports - including WA goods - to enter Indonesia duty free or with significantly improved preferential arrangements.
“Indonesia’s goods exports will enter Australia duty free and I am confident that this will result in improved conditions for WA services suppliers and offer them greater certainty for two-way entry and operation into Indonesian markets.”