Department of the Legislative Assembly, Northern Territory Government

Mr BALCH - 1998-12-03

Last December, he informed the House of plans to establish an Indonesian customs pre-clearance zone here in Darwin. What progress has been made in establishing the zone?

ANSWER

Madam Speaker, this question relates to the efforts being made by this government to increase activity in the Territory for the purpose of creating jobs for young Territorians. Last December, I brought to the attention of this House the work that had been in progress between Northern Territory government and Indonesian government authorities to establish an Indonesian customs office in Darwin to enable customs clearance of products exported from Darwin into the Indonesian nation. I am very pleased to be able to inform the House that tomorrow morning the Secretary of my Department of Asian Relations and Trade, Mr Lyal Mackintosh, and the Indonesian Director-General of Customs and Excise will sign a formal agreement creating a customs pre-clearance zone in Darwin for goods bound for Indonesia.

I am also very pleased to be able to inform members that my colleague the Minister for Resource Development will witness the signing. He is currently in Jakarta attending the ‘Mining Indonesia’ conference, again working to enhance job opportunities for young Territorians.

Having that pre-clearance zone in Darwin means all products and equipment being exported to Indonesia will be cleared for import before they leave Australia. This is a first for Australia. Goods can go from our port or our airport direct to the buyer’s door in Indonesia. Major mining and other companies such as Newmont, Petrosea, and Freeport, to name just a few, are welcoming the arrangement because it means they will be able to get their equipment on the ground much more quickly than under the existing customs arrangements.

The establishment of this service in Darwin obviously is another step towards achieving the Territory government’s objective of attracting companies which are doing business in eastern Indonesia to Darwin. It further enhances our position as a regional hub because it means that goods can be sourced from all around Australia, consolidated in Darwin and cleared and shipped in one package to buyers in Indonesia. The agreement that is being signed excludes Java and Sumatra, which are not part of the Australia/Indonesia Development Area.

The pre-clearance arrangement is set to come into effect from April next year. Two members of the Indonesian Customs Service will clear the goods. They will initially operate out of an office in the Indonesia Consulate.

I want to congratulate all those involved. This is, indeed, a major step forward. I think all those people who have been involved in the very protracted negotiations, including members of our office in Jakarta, have achieved a very beneficial arrangement for the Territory.
Last updated: 09 Aug 2016