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SYDNEY — The economic ties between Australia and Indonesia are growing stronger, with trade and investment entering a more focused and strategic phase, according to Paul Grimes, Chief Executive Officer of Austrade.
Grimes, speaking from his office at the International Towers Barangaroo in Sydney on Monday, said the economic relationship between the two countries has seen the most significant acceleration in over two decades.
He explained that Australia and Indonesia are currently building joint business capabilities for long-term objectives. Australia is striving to strengthen its role in the region through globally impactful partnerships, including climate change adaptation, risk mitigation, and the acceleration of renewable energy transitions.
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Australia is also expanding its delivery of mining expertise, particularly in underground mining operations. At the same time, Indonesia requires raw material supplies to strengthen its manufacturing industry. Grimes believes the current cooperation pattern between the two countries is "far different" from the past.
He emphasized that Indonesia's economic growth and the expanding middle class are positive signals for two-way trade and investment opportunities. "We are committed to keeping the market open," he said.
Trade Nearly Tripled
Official Australian data shows that two-way trade with Indonesia jumped from A$12.91 billion in 2020 to A$35.38 billion in 2024. This increase was driven by the implementation of the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA), a comprehensive economic partnership agreement that expands market access for both countries.
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With these achievements, Indonesia has become Australia's 9th trading partner.
Grimes stressed that Australian exporters now view Indonesia as a major growth market, with increasing business confidence.
Meanwhile, the flow of foreign direct investment (FDI) from Australia to Indonesia increased by 30% in 2024, reaching A$1.36 billion. Australian investors are becoming more active in the energy, education, technology, and agrifood sectors.
This investment realization makes Australia the 11th largest country for Indonesia. Conversely, Indonesian investment in Australia reached A$1.42 billion, not including investment through regional centers.
Australia's Financing for Southeast Asia
The positive dynamics are also driven by the expansion of financing by Export Finance Australia (EFA), the Australian government's export financing agency. In line with the major strategy Invested: Australia’s Southeast Asia Economic Strategy to 2040, EFA increased financing to A$529 million in 2024–2025, up 40% from the previous period. Currently, about 25% of EFA's global transactions are aimed at Southeast Asia.
In October 2025, the Australian Government launched two major investment schemes:
First, A$175 million for the Asia-Pacific Debt Fund owned by IFM Investors, targeting the renewable energy, telecommunications, and logistics sectors.
Second, US$50 million for a public–private partnership (PPP) fund managed by the institution, Plenary, specifically for health, education, and transportation infrastructure projects.
These two initiatives are within the framework of the Southeast Asia Investment Financing Facility (SEAIFF) worth A$2 billion, an Australian financing instrument to strengthen economic relations with Southeast Asia, including Indonesia.
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12 Australian Halal Certification Bodies Recognized by BPJPH
Australia is also strengthening the readiness of the halal product supply chain to Indonesia. As of June 2025, there are 12 Halal Certification Bodies (HCBs) in Australia recognized by the Indonesian Halal Product Guarantee Agency (BPJPH).
This recognition facilitates the export of meat, processed food, and agrifood products to Indonesia.
Another note is that there are currently about 179 Australian companies operating in Indonesia. The largest sectors include resources and energy, education, manufacturing, technology, and agrifood.
In addition, about 50 Indonesian companies are now actively operating in Australia, from Traveloka, BNI, to BUMA Group.
Grimes concluded that the strengthening of trade, investment flows, and regional funding indicates that the economic relationship between the two countries is now more integrated and complementary.
