Key sees breakthrough for beef exports to Indonesia

New Zealand should get greater access for beef exports after agreements in Indonesia between Prime Minister John Key and President Joko Widodo.

The two countries are also exploring a "comprehensive partnership" that falls short of a free-trade agreement.

“We made good progress on trade access for New Zealand beef products and believe this will be resolved in the coming months,” Mr Key said in a statement after the two leaders met in Jakarta.

New Zealand and more than a dozen other nations have asked the World Trade Organisation to investigate Indonesia's quotas and restrictions on beef imports.

New Zealand and Indonesia last year agreed to the target of increasing two-way trade to $4 billion by 2024 – from around $2 billion – to reverse a declining trend that has accelerated due to Jakarta's increased protectionist policies aimed at boosting local industries and self-sufficiency in food.

Beef exports from New Zealand alone have dropped 80% since 2012 – a loss estimated at up to $1 billion.

Indonesia, with a population of 250 million, has slipped to 13th on New Zealand’s table of trading partners.

Apart from trade, the leaders discussed the regional economy, the South China Sea dispute, counter-terrorism efforts, people-smuggling, the situation in Papua and broader human rights issues.

Energy agreement signed
Mr Key launched two new education initiatives and signed an agreement on renewable energy.

“New Zealand helped build Indonesia’s first geothermal power plant in the 1980s," Mr Key said.

"Today we signed a renewable energy and energy conservation agreement that will see New Zealand assist Indonesia in its ambition to increase renewable energy to 25% of its total energy supply by 2025.

“The New Zealand government will contribute up to $30 million over the next five years for geothermal training and technical assistance, and support to help Indonesia access renewable energy in Maluku, Eastern Indonesia.”

The educational package worth $7.1 million will boost the number of scholarships available to Indonesians and support an early childhood project in eastern Indonesia in partnership with Unicef.

Mr Key and President Widodo also agreed to work together more closely in tourism, and to combat illegal, unreported and unregulated fishing, and promote sustainable fisheries governance.

“It is clear there is a range of opportunities for New Zealand and Indonesia to work together,” Mr Key said.

“So I am pleased that today the president and I have asked officials to explore the possibility of developing a comprehensive partnership between our two countries.”

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