Australia and Indonesia are entering a promising new era of economic collaboration, marked by stronger trade flows, rising bilateral investment, and more strategic long-term cooperation. Austrade CEO Paul Grimes highlighted that the partnership is expanding at its fastest rate in over two decades, driven by shared priorities in climate adaptation, renewable energy acceleration, and industrial capability development. Australia continues to deliver expertise in sectors such as underground mining, while Indonesia’s growing manufacturing base and expanding middle class create new opportunities for mutually beneficial trade. The Indonesia–Australia Comprehensive Economic Partnership Agreement has significantly boosted performance, with two-way trade rising from AUD12.91 billion in 2020 to AUD35.38 billion in 2024. Australian FDI into Indonesia increased 30% to AUD1.36 billion, while Indonesian investment in Australia reached AUD1.42 billion, reflecting increasing business confidence between both markets.
This upward momentum is supported by broader regional financing initiatives. Export Finance Australia expanded its financing to AUD529 million for 2024–2025, with 25% of its global transactions now directed to Southeast Asia. In 2025, the Australian Government launched two major investment programs: AUD175 million for the Asia-Pacific Debt Fund under IFM Investors and USD50 million for a PPP fund managed by Plenary, focusing on renewable energy, telecommunications, logistics, health, education, and transport infrastructure. These initiatives fall under the AUD2 billion Southeast Asia Investment Financing Facility (SEAIFF), designed to deepen Australia’s economic engagement with Southeast Asia, including Indonesia. Australia is also strengthening its halal product readiness, with 12 Halal Certification Bodies recognized by Indonesia’s BPJPH as of June 2025. Today, around 179 Australian companies operate in Indonesia and about 50 Indonesian firms operate in Australia, underscoring the increasingly complementary and integrated nature of the bilateral economic relationship.
Source:
https://english.kontan.co.id/news/australia-indonesia-trade-enters-new-phase-soaring-threefold
