The conclusion of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will have a significant impact on Australia’s grains industry, according to the Australian Export Grains Innovation Centre (AEGIC).
A new AEGIC report shows that Indonesia, which is already Australia’s biggest wheat customer, is growing rapidly and should be a key strategic priority for Australia.
AEGIC Chief Economist Ross Kingwell said the IA-CEPA was an important milestone in the relationship between the Australian grains industry and Indonesia.
“This new agreement will provide a blueprint for future growth and collaboration between Australia and Indonesia and will result in significant benefits for both countries,” Professor Kingwell said.
“Indonesia already buys almost one quarter of all Australian wheat exports and is expected to experience huge growth in the coming decades.”
Prof Kingwell said by 2030, Indonesia will be the world’s 5th largest economy and its population will jump more than 30 million.
“Indonesians will become more wealthy and will be increasingly urban. Along with this, their diets will evolve to incorporate more wheat products and less rice.
“It is important for Australia to use this partnership to position Australia to continue to be an affordable and reliable supplier of wheat that meets the needs of our Indonesian friends.”
Prof Kingwell said AEGIC congratulated GrainGrowers for ensuring that grains were a central part of the partnership agreement.
“GrainGrowers is to be commended for bringing the Australian grains industry together and delivering a fantastic result which will benefit not just Australian growers but the Indonesian industry too.”