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INVESTMENT - JAKARTA. SYDNEY. The Australian government has announced its readiness to channel substantial investments into Southeast Asia, including Indonesia, through an infrastructure funding scheme worth AU$ 2 billion. This was announced by Prime Minister Anthony Albanese at the ASEAN Summit a few weeks ago.
Matt Thistlethwaite MP, the Assistant Minister for Immigration and the Assistant Minister for Foreign Affairs and Trade, emphasized that Indonesia has a significant opportunity to be the largest recipient of this investment, in line with the strengthening economic and defense relations between the two countries.
He noted that the trade relationship between Indonesia and Australia has been dominated by exports of meat, wheat, and the flow of Indonesian students to Australia. However, this pattern is beginning to change.
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"A week ago, President Prabowo Subianto and PM Albanese announced a new defense cooperation. This ensures that both countries work together to maintain the security and welfare of their people," he said when met at his electorate office in Maroubra, New South Wales, Australia, November, 17.
Australia has also noted the high mobility of its citizens to Indonesia, especially to Bali, a favorite destination for Australian tourists.
Meanwhile, as it enters its fifth year, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is now in the review phase.
"We will look at what has been going according to plan and what needs to be improved. Reviews like this are present in almost every trade agreement," Thistlethwaite said.
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One of Australia's main focuses is to deepen cooperation in future sectors, namely critical minerals, artificial intelligence (AI) technology, renewable energy, and sustainable manufacturing.
Thistlethwaite mentioned that Australia has a jumbo pension fund worth AU$ 4 trillion, which has so far been placed in the North American and European markets. However, PM Albanese's administration is shifting its investment strategy towards Southeast Asia.
"We see Indonesia's rapid population growth, a growing middle class, political stability, and a great need for infrastructure. This factor reduces investment risk," Thistlethwaite explained.
The Australian pension fund has previously funded railway projects and is now targeting major projects in Jakarta, Kuala Lumpur, and Singapore.
Australia believes that Indonesia has a strategic position in the future energy supply chain, one of which is solar panels.
