"In particular, the agreement to increase import quotas and decrease tariffs for carrot and potato exports - two of the Australian vegetable industry's key export crops - should lead to an immediate increase in the trade of these commodities to Indonesia, a potentially lucrative market for our growers".
Indonesian President Joko Widodo and Morrison signed a memorandum of understanding committing the countries to get a free trade deal done within months.
The deal, which is expected to be signed by year-end pending legal fine-tuning, was the highlight of the first overseas trip by new Australian Prime Minister Scott Morrison since he replaced Malcolm Turnbullin a bitter leadership battle last week.
"Indonesia has the honour of being the first country visited by the prime minister".
Australia is one of Indonesia's most important trading partners, with Australia enjoying a surplus, according to Trade Ministry data.
Bilateral trade between the neighbours was US$8.5 billion (S$11.6 billion) a year ago, with Indonesia a incurring deficit of US$3.5 billion.
Only some detail on the accord were released but some 90 percent of Australian goods exported to Indonesia, by value, would enter duty free or "under significantly improved arrangements" under the deal, Australian Trade Minister Simon Birmingham said earlier on Friday, adding that was up from 85 percent under previous deals.
Australian Prime Minister Scott Morrison sings with students at SMPN 2 Babakan Madang High school in Jakarta
"That is the part of the relationship where we need to do some more heavy lifting, the economic relationship", Mr Morrison said.
Australia Indonesia Business Council president Phil Turtle said trade had been "underdone" for many years.
At present, the limit on foreign ownership of universities is 40 per cent.
"We have also taken a big step in economic relations today by ensuring Australia and Indonesia realize the existing economic opportunities".
Indonesian President Joko Widodo watches as Australian Prime Minister Scott Morrison signs the guest book at the presidential palace in Bogor, Indonesia August 31, 201.
It will allow Australian universities to own a stake in Indonesian institutions and also impact the agriculture sector Down Under, which exports around 50 per cent of its wheat to the Asian nation, followed by cotton, live animals, sugar and beef.