Indonesian and Australian trade officials met here Monday to discuss the possible establishment of a bilateral free trade agreement (FTA) after a two-year feasibility study.

Indonesian Trade Minister Mari Elka Pangestu said the government has formed a team of entrepreneurs and experts to conduct the FTA study.

"Since early this year, the joint group comprising representatives from businesses and economists has been conducting a study focusing on the growing investment and trade between the two countries that may lead to an Indonesia-Australia FTA," she said at a press conference after meeting his Australian counterpart Warren Truss.

When the study is concluded, the two ministers will submit the FTA proposals to their respective head of government for endorsement, she said.