Labor to back wage crushing Indonesian FTA

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By Leith van Onselen

It is considered unlikely that any free trade deal between Australia and Indonesia will be signed before the federal election. Elections in Indonesia are due in April, while there is still unhappiness in Indonesia over Prime Minister Scott Morrison’s 2018 suggestion that Australia might re-locate its embassy in Israel to Jerusalem. Nevertheless, the Coalition is hopeful that a trade deal with Indonesia will be signed before the end of 2019, and Labor has signalled it would support the deal if it forms government. From The AFR:

Trade Minister Simon Birmingham was cautiously optimistic. “This a good deal for both our countries, which will increase the two-way flow of trade and investment, creating more opportunities for exporters and economic development,” he said…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.