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Govt to close Indon office

The State Government is closing its trade office in Indonesia after more than 20 years in a move that has shocked key players in the highly sensitive market.

It is understood the closure is linked to the Government's cost-cutting measures and based on Department of State Development thinking that agriculture is the only industry in WA that relies heavily on Indonesia.

WA agricultural exports to Indonesia reached $865 million in 2013-14, with wheat ($701 million) top of the list.

The Jakarta-based trade office is run by just a few staff, including regional director Kellie-Jane Pritchard. It is the only one targeted for closure by the DSD, with offices in China, London, Dubai, India, Korea, Japan and Singapore set to remain open.

Perth-based Indonesia Institute spokesman Ross Taylor said it would be a big mistake to close the Jakarta office.

Mr Taylor, a former regional director of the trade office, said challenging markets like Indonesia provided the biggest opportunities and were also where WA businesses needed the most help.

"Why have an office in Singapore and not have one in Indonesia where 100 million people are heading into the middle class in the next 10 to 15 years," he said.

"It is a country destined to have one of the largest economies in the world by 2030.

"Our institute has not been approached by DSD on this and, to my knowledge, nor has the Australia Indonesia Business Council. If true, the closure would come at a time when trade opportunities are enormous."

Regional directors of the various trade offices were told of the closure last week at a gathering in Perth. It is believed the work could be contracted out to the Federal Government's Austrade division at a time when other States have moved to set up their own offices in Indonesia.

A Department of Premier and Cabinet spokesman said: "WA is seeking to change its office arrangements in Jakarta but will continue its commitment to Indonesia and to its sister-state relationship with East Java." He said WA would have "full-time representation in Indonesia".