18 Apr 2012

NZ under-performing in Indonesia trade - Key

6:07 am on 18 April 2012

Prime Minister John Key says New Zealand is under-performing in terms of trade with Indonesia.

Mr Key, Trade Minister Tim Groser and a 26-strong business delegation are in Jakarta for a two-day visit.

[image:5011:half:right]

Mr Key says Indonesia is a rapidly growing, trillion dollar economy which presents a massive opportunity for New Zealand.

However of the 70,000 Indonesian students studying around the world only 600 came to New Zealand, he says.

"So, massive opportunity, underdeveloped from our point of view, but with the Free Trade Agreement that we signed at the start of the year, a great opportunity for us to extend those relationships."

Mr Key says corruption is an issue for companies wanting to enter the Indonesian market.

He says New Zealand businesses need to build strong relationships and not get sucked into an environment where they have to pay for access that should be freely available.

Flights between NZ and Indonesia re-open

Auckland Airport has signed a memorandum of understanding with the airline, Garuda Indonesia to commit to re-opening flights between New Zealand and Indonesia.

The agreement was signed in Jakarta on Monday afternoon.

Auckland will be the first destination, as soon as market conditions and aircraft availability allow.