New Zealand and Indonesia sign trade and investment framework

A Trade and Investment Framework (TIF) signed between New Zealand and Indonesia today will provide a foundation for further building the trade and economic relationship between the two countries.

---------------------------------

A Trade and Investment Framework (TIF) signed between New Zealand and Indonesia today will provide a foundation for further building the trade and economic relationship between the two countries, Trade Minister Phil Goff said today.

"Indonesia is the largest country in the region with a population of around 242 million people. Its economy, which has grown by over 5% in each of the last three years, is the largest in South East Asia", said Phil Goff.

"Indonesia is now New Zealand's biggest market in South East Asia, and our ninth biggest trading partner overall. Our trade with Indonesia grew by 32% in the year to June 2007, with exports to Indonesia of about $653 million.

"The TIF is a non-binding intergovernmental arrangement designed to facilitate greater trade and investment flows between New Zealand and Indonesia.

"The Framework expresses the shared commitment by both countries to providing open, transparent and competitive markets.

"The TIF identifies a list of priority activities that will guide the work of our two governments.

"These include trade and investment facilitation, through reducing compliance costs and regulatory barriers in sectors of mutual interest, the promotion of Indonesia and New Zealand as attractive investment destinations, cooperation between government agencies and the building of stronger ties between our private sectors.

"The TIF provides for ongoing bilateral dialogue at officials and ministerial level. It also allows for the involvement of business and non-governmental representatives in this dialogue in relevant areas.

"The TIF is a forward-looking mechanism. As well as establishing priority areas for cooperation, it will be reviewed periodically to ensure that it remains relevant to, and keeps pace, with our growing trade and economic relationship with Indonesia.

"I am pleased that it has been possible to conclude the TIF, which was first discussed during the Prime Minister's visit to Indonesia in July, so quickly.

"This is further evidence of the value that both countries attach to building the trade and economic relationship in a sustainable and mutually beneficial way," Mr Goff said.

Mr Goff signed the TIF with his Indonesian counterpart, Dr Mari Pangestu, during a bilateral visit to Jakarta.