JAKARTA, Indonesia (AP) — Indonesia and Australia were to sign a free trade agreement Monday that will eliminate many tariffs, allow Australian-owned hospitals to be set up in the giant Southeast Asian country and increase work visas for young Indonesians.

Trade ministers from the two countries were to sign the agreement, negotiations for which first began in 2010, at a Jakarta hotel with Indonesia's Vice President Jusuf Kalla looking on. It is subject to ratification in both countries.

Annual trade between Australia and Indonesia is valued at $11.6 billion. Though neighbors, their trade is re...