In a notable development strengthening economic ties between Australia and Indonesia, foreign direct investment (FDI) from Australia into Indonesia reached an unprecedented US$545.2 billion in 2023. This surge represents a four percent increase from the previous year and underscores the deepening economic collaboration between the two nations.
During a recent dialogue and business reception held in Melbourne, Australia, Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted the significance of Australia as a pivotal partner in Indonesia’s economic landscape. He emphasised the growing FDI from Australia, which also witnessed a remarkable surge in investment projects, soaring by an impressive 200.6 percent.
Australia’s role as one of the top 10 investors in Indonesia is underscored by its contribution of 1.1 percent to the total FDI, amounting to US$50.268 billion in 2023. Minister Hartarto expressed his appreciation for Australia’s continued support and commitment to bilateral economic cooperation.
Looking ahead, Minister Hartarto outlined Indonesia’s strategic vision for 2045 as a high-income nation and stressed the importance of cross-border economic integration in achieving this goal. Efforts include ongoing discussions for accession to the Organisation for Economic Co-operation and Development (OECD) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP).
Australian Ambassador to Indonesia Penny Williams echoed Minister Hartarto’s sentiments and reaffirmed Australia’s commitment to bolstering bilateral relations across various sectors. She pledged Australia’s support for Indonesia’s accession to the OECD and CP-TPP, highlighting the shared commitment to fostering trade and investment partnerships.
As both nations prepare to celebrate the 75th anniversary of diplomatic relations, Minister Hartarto emphasised the importance of collaboration in critical sectors such as energy, technology manufacturing, education, and maritime resource utilisation. The ambitious IKN Nusantara mega project stands as a testament to the shared aspirations for economic growth and sustainable development between Indonesia and Australia.
The surge in Australia’s FDI into Indonesia reflects the resilience and dynamism of Indonesia’s economy, while also highlighting the mutually beneficial nature of the bilateral partnership. With shared goals for economic prosperity and sustainable development, Indonesia and Australia are poised to embark on a new chapter of robust collaboration and mutual growth in the years ahead.
