Indonesia is set to start exporting tropical fruit to New Zealand as part of the archipelago`s efforts reduce a trade deficit with the South Pacific island nation, a trade ministry senior official said after negotiations last week.

The two countries have been involved in a series of negotiations on a trade and investment framework since 2007, aimed, among others, at increasing the value of bilateral trade to Rp 40 trillion ($2.9 billion) by 2024.

But growth has stagnated with total trade values barely inching from the $1.1 billion mark over the past five years, with an average $320 million deficit for Indonesia, the ministry`s data shows.

This has prompted senior Indonesian and New Zealand officials to meet in Wellington on June 20 to try and find breakthrough.

"The meeting was a concrete effort by the two countries to increase the trade balance, which would be achieved by opening more access for Indonesia`s agricultural products, particularly tropical fruit," Djatmiko Bris Witjaksono, bilateral trade negotiations director general at Indonesia`s Ministry of Trade, said in a statement on Friday (24/06).

In return, New Zealand companies will invest in agriculture, energy, the environment, education, tourism, air transportation, security and food production in Indonesia. New Zealand will also allow Indonesian migrant workers access to its job market.

New Zealand delegation head Martin Harvey welcomed the deal, noting that Indonesia has made the investment process easier and also improved protection for investors with the latest revision of its negative investment list.

Indonesian exports to New Zealand have dropped 9.4 percent to $436 million from a year ago, with shipments mainly consisting of oil cake, coal, tires, wood and fertilizer.

Indonesia imports mostly dairy products, frozen meat and animal feed from New Zealand.

By Jakarta Globe

http://jakartaglobe.beritasatu.com/business/indonesia-set-start-exporting-tropical-fruit-new-zealand/

 

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