The Government of Australia ("Australia") and the Government of the Republic of Indonesia ("Indonesia"), hereinafter referred to collectively as "the Parties":

REINFORCING the longstanding bonds of friendship and cooperation between them, the growing bilateral economic relationship and their shared regional interests and ties;

RECALLING the positive contribution made to the trade and investment relationship between the Parties by the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area ("AANZFTA"), signed at Hua Hin on 27 February 2009;

MINDFUL of the Asia-Pacific Economic Cooperation goals of free and open trade and investment;

RECOGNISING that open, transparent and competitive markets are key drivers of economic growth, poverty reduction, job creation, innovation, expansion of productive capacity and human development;

RESOLVING to create clear and mutually advantageous rules governing their trade and investment to promote a predictable, transparent and consistent commercial framework for business operations, minimise barriers, enhance economic efficiency and create a larger market with more opportunities for business;

DESIRING to generate broader and deeper economic integration between the Parties, strengthening inclusive economic growth and development, and advancing economic cooperation;

RESOLVING to strengthen their economic, trade, and investment relations to contribute to the objectives of sustainable development in its economic, social and environmental dimensions, and to promote trade and investment under this Agreement;

ACKNOWLEDGING the important role and contribution of business in expanding trade and investment between the Parties and the need to further promote and facilitate cooperation and utilisation of the greater business opportunities provided by this Agreement; and

BUILDING ON the respective rights and obligations and undertakings of the Parties under the Marrakesh Agreement Establishing the World Trade Organization ("WTO Agreement") and other existing international agreements and arrangements to which the Parties are party;

HAVE AGREED AS FOLLOWS: