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Minister Hatta: Speaks in Indonesian

Translation: Fellow journalists whom I respect and I love, today we are together with the Australian Government in this case Mr Kevin Rudd and his delegation, earlier we have met to discuss a bilateral relationship concerning the Indonesian economy sector and also other sectors.

Earlier we discussed the development of both countries' relations and also discussed the Australia Indonesia Ministerial Forum, which will be held in Indonesia in October, discussing the relations of both countries.

Earlier, we also discussed the status of Comprehensive Economic Cooperation Partnership Agreement and other areas of trades.

Along with that, we also discussed about the bilateral relationship that relates to meat and, especially beef or our live cattle.

What we need to reiterate to all of you that yesterday we have released a statement and press release to all of you that Indonesia will be having a policy and this policy will not be changed, however we will concur to the existing law, which is regulation number 18, we will concur to the international standard, and that is important, we will also pay attention to the animal welfare, these standards will refer to the Indonesia standard, and the Indonesian standard within the law is refer to the international standard.

We will also carry out improvements to all abattoirs, which will concur to the standard and we will conduct a review to the abattoirs through an independent audit.

Secondly, we will also issue a new export and import policy which will be issued by the trade and agriculture ministers, which relates to the supply chain which will refer to the animal welfare. This is principal, and we will not change any policy.

In relation to the our conversation, we also would like to convey that Australia has lifted it's ban, and we have also discussed that all matters related to standard, so if business to business would like to discuss something in relation to the improvement of animal welfare and standard improvement, we will be very welcome if they want to use in relation to utilisation, such as device that meet the standard of Halal.

This is what we would like to reiterate, we also have stated that the quota in October, the third trimester is estimated 180 000 cattle, and we have issued the SPP, this has been previously issued, so we discussed matters that related to the Indonesian standard.

So ladies and gentlemen, those were our statements.

Kevin please …

Minister Rudd: Terima kasih Pak Hatta, terima kasih Ibu Marie, terima kasih Pak Suswono and terima kasih Pak Ambassador.

It's good to be back in Indonesia, it is good to be back in Jakarta, and it's good to be back here with so many friends, who I've worked with over many many years.

As Pak Hatta has just said we've had a good discussion about the Australia Indonesia economic relationship.

We have discussed, of course, the CEPA between us both. We have also discussed the scheduling of the next Indonesia Australia Ministerial Forum which we hope to conduct sometime in the third quarter of this year.

And the reason why these discussions on our broad economic relationship are so important is because this is an economic relationship of growing importance to us both.

Indonesia's rising per capita income, its rising global economic size, its role in the G20 means that Indonesia as an economy is of increasing regional and global significance.

And if I look to the future over the next 10 to 10 years, I see a very big regional economy here in Indonesia and one which we in Australia have a profound national interest in engaging comprehensively.

That is why our trade investments our investment relationship and our people to people links are so important.

And why instruments such as CEPA, mechanism such as the Australia Indonesia Ministerial Forum are so important as well. So for me this has been an important discussion on those areas of cooperation.

Of course our discussions also focussed on something which is common to both our countries that is the challenge of animal welfare standards.

But Australia and Indonesia are committed to animal welfare standards. The Australian Government through its own legislation regulation has clearly articulated its position on animal welfare standards.

Also I wish to welcome what Indonesia has been doing through its own processes.

Indonesia, in 2009 passed its animal welfare legislation, embodying international OIE standards. And in the two years since then Indonesia has been developing its industry regulations.

These regulations were concluded yesterday and those regulations go to such critical questions as ensuring the supply chain within the Indonesian system.

And the maintenance of animal welfare standards within the supply chain in the Indonesian system.

For example Pak Hatta has advised me today that under these regulations that Indonesian feedlots now must be linked to abattoirs and the rest of the food chain, the rest of the supply chain, in order to guarantee that these animal welfare standards of Indonesia compatible with OIE standards are being implemented on the ground.

And we in Australia welcome that.

Furthermore, what we have agreed is both sides, is that in the implementation of animal welfare standards, Australia will of course implement it through its export licenses and we have been very clear to Australian exporters as to what their obligations in the future are.

Concerning the identification of Australian cattle; concerning their responsibilities for ensuring independent auditing through credible independent auditors of agreed international standards; and furthermore through ensuring that they track this through the entire supply chain from beginning to end.

On top of that Indonesia of course implements its own animal welfare standards through its import permits. And that has been the subject of our discussions again this morning.

And I would welcome what Pak Hatta has just said about any other arrangements concerning industry in both countries on standards higher than those of the OIE international standards.

Both Australia and Indonesia welcome any arrangements that industry reaches to give effect to higher standards including the use of the appropriate technical devices that meets Halal standards.

These are important considerations. And these are the subject of deliberations between the two industries in Australia and in Indonesia.

Finally could I also indicate that Australia also welcomes Indonesia's statement today that import permits for 180,000 cattle had been issued as of round about 9 o'clock this morning.

These have been fruitful discussions which cover the critical questions of animal welfare for our friends in Indonesia for our folks back home and people around the world also the impact of the industry itself within Indonesia within Australia.

And making sure that we have a strong reliable base for the future of this industry which is important to both our countries both our economies and both our peoples.

Thank you very much Pak Hatta.

Minister Hatta: Speaks in Indonesian

Translation: So ladies and gentlemen, these are the discussion that I could convey to you all.

Thank Mr. Kevin, today we have to do a Friday Pray, and the call of pray has been announced, maybe one question, I am so sorry.

But after the Friday Pray, I will hold a question and answer session. Because we have to do the Friday Pray.

Minister Hatta: I am sorry to the media I have to go the mosque, because of this Friday, so Ibu Marie will take your some question.

I am so so sorry because I have to go the mosque. I am so sorry. So only one question.

Jakarta Post: My name is Esther from the Jakarta Post. I have several questions, sorry, I am far behind.

About Indonesia Australia Comprehensive Partnership Agreement, Indonesia has rectified the ASEAN Australia Free Trade Agreement so when could be see this CEPA being implemented, could it be this year or in the third quarter or fourth quarter and about the live cattle export for Mister Kevin Rudd, what are the ground of your decision to lift the banned on your live cattle export to Indonesia and are there terms in the agreement and the third question would be have you discussed the possibilities to push trade and investment in Indonesia, thank you.

Minister Rudd: On your first part of your question on CEPA.

We understand that, and I look to Marie Pangestu on this, I understand our formal negotiations on this commenced, have commenced already.

But in terms of conclusions based we are working on this as rapidly as possible and I think none of us, knowing each other well, want to get in the road of getting a good agreement done.

This requires a lot of effort and time, and so we are not imposing arbitrary timelines on it. So I think it's important that we bring this to an appropriate conclusion.

Minister Hatta: I think CEPA is not limited to the free trade agreement, but it's more than that, so we are going to proceed, we are on the process and discuss on it. Hopefully, probably next year, we'll see together again to finalise the CEPA.

Minister Rudd: And both the Trade Ministers are working on this intensively Trade Minister Emerson, Trade Minister Pangestu.

This will take some time but we're confident because it's a long standing relationship with good political will, and our economies mean a lot to each other that we'll get it done get it done well and get it done as early as we can.

There was a question about live cattle which I did not quite follow from the back and I know that Pak Hatta has to go.

All I can say is that the agreements that we have discussed today and reflect in Pak Hatta's statements and my own statements are the product of a lot of hard work by the Ministers who are with me today and I would like to publicly acknowledge their own extraordinary work in this area in their own industries in their own animal welfare standards and of course with our Australian counterparts on recent times as we dealt with a real challenge for both of us and a real challenge for animal welfare standards and a real challenge for both of our industries.

And we're working our way through this effectively and today represents a further advancement on where we've been and I acknowledge also the decision concerning import permits.

Karlis Salna: Mr Rudd do you see that trade has been damaged over the last month since the suspension in trade was imposed?

Minister Rudd: Well, if you're talking about the cattle trade, of course.

here has been a suspension in trade. Therefore it hasn't been operating for the last month. Therefore it follows that there has been obviously economic impact in this country Indonesia and in Australia.

Let's just call a spade a spade. What we've been here today doing today and what our counterparts have been doing my Indonesian colleagues have been doing with their Australian counterparts Senator Ludwig and Minister Emerson is working our way through these issues.

We've reached a good outcome and I draw your attention in particular to the statements that we have made concerning the industry to industry arrangements which go beyond OIE standards and the any such agreements which would deploy appropriate technical devices.

Karlis Salna/AAP: Are those standards though that Indonesia will implement are higher or lower from Australian standards?

Minister Rudd: The international standards we both adhere to are OIE standards and these are the global standards on animal welfare.

Secondly in terms of other additional standards which industry may agree to with industry, I draw attention again to what I've just said about the agreement between industry on the use of appropriate technical devices in order to that meet Halal standards which go beyond those which are in trenched within the OIE.

That is an important point I emphasize it to you and I suggest you address you remarks on that to the respective industry organisations as well.

Minister Hatta: Speaks in Indonesian

Translation: There are no differences in standard; our standard refers to the International standard.

Lastly I would like to convey, before I am heading to the Mosque, Indonesia and Australia are friends, neighbours and strong partners, we will solve any problems between the two countries and we are determined to improve the relations between the two countries and to strengthen our relationship in any aspects.

Thank you, Assalam.

ENDS

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