Indonesian working holiday visas to rise

Thousands more Indonesians will be allowed into Australia on working holiday visas under the conditions of a landmark free trade agreement.

Trade Minister Simon Birmingham confirmed a "few thousand" people will be allowed to enter Australia, while also signalling more student visas would be granted.

"It's not a significant number, but it's important," Senator Birmingham told Sky News.

"Trade is not just about strengthening economic ties and growing more jobs and prosperity, but trade and exchange here also strengthens our understanding of each other's nations."

Prime Minister Scott Morrison signed a memorandum of understanding with President Joko Widodo on Friday, committing the countries to getting the deal signed before Christmas.

Under the deal, all taxes will be removed from Australian imports, and 99 per cent of taxes will be taken off products Australia sends to Indonesia.

The comprehensive strategic partnership with Indonesia will be signed by the end of the year.