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Map of Indonesia

Map of Indonesia.
flag of the Republic of Indonesia

Republic of Indonesia

 

Bilateral relationship

Indonesia is a priority relationship for New Zealand, with cooperation across a wide range of areas. Indonesia has experienced rapid economic growth since becoming a democracy. It is the world’s sixteenth largest economy projected to be the seventh largest by 2030. With a population nearing 250 million and a growing consumer class, Indonesia is a key market for New Zealand’s exports. Indonesia is the world's largest archipelago with approximately 18,000 islands spanning the equator and is an important partner for New Zealand in the Asia-Pacific region.

 

Trade and economic relationship

Indonesian and New Zealand markets are complementary and largely non-competitive. The agreement establishing the ASEAN, Australia and New Zealand Free Trade Area (AANZFTA) was signed by New Zealand, Australian and ASEAN Trade Ministers on 27 February 2009.  Indonesia completed its ratification process in late 2011 and the agreement entered into force for them on 10 January 2012.

AANZFTA represents a significant milestone in New Zealand’s engagement and on-going integration into one of the world’s most economically dynamic regions, and, provides an important foundation for the strengthening of our bilateral trade relationships within ASEAN.  By 2020, New Zealand exporters will receive tariff-free treatment in Indonesia on more than 99 per cent of tariff items, compared with only 11 per cent before the agreement entered into force. New Zealand and Indonesia also reached agreement on a bilateral cooperation package, including in areas such as agriculture, labour and environment cooperation.

New Zealand Trade (year ended Dec 2013)

Ranking

NZ’s 11th largest trading partner

NZ Exports

NZ$886 million (FOB)

Main exports

Dairy ($432m); Meat and bone meals, animal feed and other ($110m); wood products ($116m)

NZ Imports

NZ$805 million (CIF)

Main imports

Mineral fuels ($172m) Animal feed and other ($166m); Electric machinery ($69m)

Air Services

Commercial air services between New Zealand and Indonesia are governed by the revised Air Services Arrangement, signed in October 2013, which replaced the May 1988 Air Services Agreement and the associated August 1999 Memorandum of Understanding which allow for services between Indonesia and New Zealand, including via intermediate points in Australia. Air New Zealand commenced seasonal direct Auckland to Bali flights during the peak season (June-Oct) in 2012, and extended the service in 2013 following high levels of demand.

Agriculture

New Zealand is one of Indonesia's leading suppliers of dairy products. Indonesia is also an important market for New Zealand beef and forestry products. Indonesia's import licensing regulations on animal (including beef) and horticultural products have been an impediment to the growth of our beef trade. These include a range of measures such as quotas and pre-shipment inspection procedures. Approximately 90% of New Zealand's exports to Indonesia are primary products (principally dairy products - about 43% - meat, wood pulp and other wood products).

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Political and cultural links

Development assistance

New Zealand’s bilateral aid programme with Indonesia is our largest outside the Pacific. The total indicative aid flow to Indonesia (including funding for scholarships and activities financed by the New Zealand Partnerships Fund) is up to NZ$20 million each year. The New Zealand-Indonesia Strategic Framework for Development 2012-16 aligns with five of Indonesia’s eleven national development priorities and focuses on:

Education

Indonesia is a priority international education relationship for New Zealand.  In 2011, New Zealand and Indonesia signed an Arrangement on Education Cooperation and the inaugural New Zealand Indonesia Education Joint Working Group was held in 2012, with a second meeting to be held in 2014. The arrangement provides a framework for engagement between the New Zealand and Indonesian Ministries of Education, and more generally tertiary institutions and education providers.  Education NZ increased its presence at the New Zealand Embassy in Jakarta in 2013, and has run a number of roadshows to raise awareness of New Zealand as an education destination. In 2012, around 560 full fee-paying Indonesian students attended New Zealand educational institutions. The New Zealand-ASEAN Scholars Flagship also provides Indonesia with 50 scholarships each year for post-graduate study.

Defence and Police

As a result of the significant reform in the Indonesian military (TNI) and the strengthening of our bilateral relationship, at the end of 2006 New Zealand resumed cooperation with the Indonesian armed forces (TNI).  Bilateral defence activities include programmes on education (including command and staff training) non-combat training and cooperation in humanitarian operations and regional forums.  In 2011 New Zealand’s ANZAC frigates visited Indonesia for the first time in more than a decade.  In November 2013, the New Zealand Chief of Army led a delegation from the NZDF CSC to Indonesia in November 2013. 

The “Arrangement on Cooperation in Preventing and Combating Transnational Crimes” was signed between New Zealand Police (NZP) and the Indonesia National Police (INP) on 7 January 2011 and provides new legal base of further development of the two countries’ bilateral police cooperation.  The first meeting of the Joint Working Group was held in Wellington in March 2012. The second meeting was held in May 2013 in Jakarta, with the third to be held in mid-2014 in Wellington.  The Eastern Indonesia Community Policing Programme, funded by the New Zealand Aid Programme and due to start early 2014, will see two NZP officers stationed in Papua, to train up to 1000 INP officers on effective community policing.  NZP, in partnership with Victoria University of Wellington, also held a course on transnational crime that was attended by INP officials in 2013.

Immigration and Tourism

In the year ending December 2013, 13,700 Indonesians made short-term visits to New Zealand (staying less than 12 months). An increase of 11.9%. According to the 2013 census, there were 4,187 Indonesians resident in New Zealand. According to Statistics New Zealand, 25,100 New Zealanders travelled to Indonesia in the year to December – an increase of 28 per cent.

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Cultural and business links

The Indonesia Chapter of the ASEAN-New Zealand Combined Business Council, based in Auckland, promotes business relations between New Zealand and Indonesia, as does a similar organisation based in Jakarta.  New Zealand and Indonesian government and business representatives met under the auspices of the Indonesia-New Zealand Joint Commission on Economic and Trade Relations (JETC), to facilitate business and trade relations.  Based on agreement reached during the visit of President Yudhoyono in 2005, the JETC was elevated to a Joint Ministerial Commission (JMC), which met for the first time in Jakarta in May 2007.  The Asia New Zealand Foundation is active in promoting greater understanding of Indonesia and other Asian countries among New Zealanders and recently visited Indonesia for a track II dialogue in December 2013.  The New Zealand-Indonesia Association also promotes Indonesian culture in New Zealand. 

The Indonesia-New Zealand Council was launched by Foreign Minister McCully and Indonesian Foreign Minister Natalegawa in 2010 with Ministers McCully and Groser as co-patrons.  The Council brings together key prominent individuals who wish to support the bilateral relationship.  Patron of the Indonesian Chapter is former Indonesian Foreign Minister Hassan Wirajuda, and the Indonesian Chair is former Indonesian Ambassador to New Zealand Amris Hassan.  Ministers McCully and Groser are co-patrons of the New Zealand Chapter.  The Chair of the New Zealand chapter is former Vice-Chancellor of Victoria University, Pat Walsh.  The Council organized a visit by Retired Lt Gen Agus Widjojo to New Zealand in February 2014, and will be involved in preparations for events commemorating the 40th anniversary of ASEAN-New Zealand relations in 2015.

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Regional and multilateral links

Indonesia exerts considerable influence in regional and international affairs, both bilaterally and through forums such as the UN, G20, APEC, ASEAN, EAS, OPEC and the Organisation of Islamic Conference (OIC).  New Zealand and Indonesia cooperate on security, political and economic issues through multilateral forums such as the United Nations, World Trade Organisation, APEC, ASEAN Post-Ministerial Conference, ASEAN Regional Forum and the Cairns Group of agricultural exporting nations.  Indonesia and New Zealand also participate in regional and multilateral groupings that promote closer linkages between the countries of ASEAN and Australia/New Zealand (AFTA/CER) and Asia and Latin America. 

Indonesia became a Pacific Islands Forum Dialogue Partner in August 2001 and both countries participate in the annual South West Pacific Dialogue. Since 2005, Indonesia and New Zealand have also been partners in the East Asia Summit.  Indonesia chaired APEC in 2013 and the Ninth Ministerial Meeting of the World Trade Organization (WTO MC9).

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Visits

New Zealand Ministerial visits to Indonesia

Indonesian Ministerial visits to New Zealand

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Representation

Travel advice

The Safetravel website provides a travel advisory for travellers to Indonesia [external link].

Enquiries may be directed to Consular Division at the following numbers:  Ph: +64 4 439 8000; Fax:  +64 4 439 8532.     

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Page last updated: Friday, 28 February 2014 10:41 NZDT