Indonesia and New Zealand are working to nearly double their bilateral trade to NZ$6 billion, or approximately $3.5 billion, by the end of 2029. According to a joint statement from an Auckland meeting between Foreign Minister Sugiono and New Zealand counterpart Winston Peters, both governments intend to leverage tariff-slashing pacts and the halal industry to reach this target and resolve non-tariff trade barriers.
The diplomatic talks come as government data highlights slight economic slowdowns in current cross-border commerce. Export-import activities between the two nations reached just under $1.9 billion in 2025, with first-half trade dipping 0.41% year-on-year to $958.7 million. Meanwhile, Jakarta’s first-half trade deficit grew by more than 47% year-on-year to $315.1 million, driven largely by milk product imports.
Halal Industry Agreements and Market Entry
To reverse these sluggish trade trends, both officials focused heavily on regulatory alignment surrounding halal standards. In 2025, the nations inked a halal agreement designed to ease market entry for New Zealand meat and dairy products. This pact carries particular weight as Indonesia, the world’s largest Muslim-majority country, prepares to make halal certificates mandatory starting this October.
Sugiono described the Auckland discussions as productive in a social media post, emphasizing the joint commitment to resolving non-tariff trade barriers.
Did You Know? Indonesia and New Zealand established their target to reach NZ$6 billion in annual trade by the end of 2029 through a formal 40-point joint ministerial document.
Regional Trade Pacts and Tariff Reductions
Beyond bilateral agreements, the foreign ministers welcomed recent upgrades to ASEAN’s free trade pact with New Zealand and Australia. These enhancements introduced fresh provisions for e-commerce and small businesses. Both diplomats also signaled plans to utilize the Regional Comprehensive Economic Partnership, known as RCEP, to further stimulate commercial activity.
As the world’s largest trade deal, RCEP allows virtually all goods from ASEAN nations to enter New Zealand at zero tariffs, with reciprocal terms applied to New Zealand goods entering ASEAN. Similar zero-tariff frameworks apply when these nations trade with China, Japan, South Korea, and Australia. These broad multilateral structures provide a foundational safety net for trade continuity.
Frequently Asked Questions
What is the target trade volume for Indonesia and New Zealand by 2029?
The two countries are aiming for a yearly trade goal of NZ$6 billion, which equals roughly $3.5 billion, by the end of 2029.
When does Indonesia plan to enforce mandatory halal certificates?
Indonesia plans to make halal certificates mandatory starting this October.
What trade agreements are being utilized to boost commerce?
The nations are leveraging existing tariff-slashing pacts, a bilateral 2025 halal agreement, upgrades to the ASEAN free trade pact with New Zealand and Australia, and the Regional Comprehensive Economic Partnership.
How will regulatory changes impact future trade between Indonesia and New Zealand?
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