Australia and Indonesia's government-to-government relationship is as strong as it has ever been - and business-to-business relationships are following closely.
In February, a delegation of Australian investors travelled to Jakarta to deepen partnerships and advance long-term investment opportunities. It was the second investor mission and the fifth business mission to Indonesia under Invested: Australia's Southeast Asia Economic Strategy to 2040 and was timed to coincide with the Indonesia Economic Summit.
The mission was led by Business Champion to Indonesia Professor Jennifer Westacott AC and Special Envoy for Southeast Asia Mr Nicholas Moore AO. Austrade's CEO, Dr Paul Grimes, also participated as a member of the mission.
The delegation comprised 29 senior Australian corporate and institutional investors, asset managers and peak bodies representing the finance, mining and resources, infrastructure and healthcare sectors.
'I'm honoured to co-lead this fifth business mission delegation to Jakarta. The calibre and size of the delegation demonstrates the interest Australian investors have in Indonesia,' says Ms Westacott.
'Australia is now Indonesia's 9th largest source of FDI. There are many Australian companies in Indonesia that are creating high-quality jobs and transferring technology while operating to high environmental standards.
'As Business Champion, I want to ensure more Australian companies and fund managers understand Indonesia's growth potential and the range of existing platforms and pathways to facilitate foreign investment.'
Aligning with Indonesia's reform and growth agenda
During the mission, Austrade facilitated targeted engagement between Australian investors, Indonesian government and business leaders.
The delegation took part in high-level engagements with representatives from the Ministry of Finance, Ministry of Transportation and Ministry of Infrastructure, as well as the Indonesia Business Council, Indonesia Chamber of Commerce (KADIN) and Danantara, an Indonesian sovereign wealth fund. These engagements helped shed light on Indonesia's investment direction and Australia's capacity to bridge the gap.
Danantara gave an overview of Indonesia's investment and partnership model and identified national priority sectors. This insight highlighted the scale of Indonesia's ambition to reform over 1,000 state-owned enterprises (SOEs) and the role Australian companies could play.
Australian investors and peak business groups engaged with high-level Indonesian government officials, industry associations and leading businesses to explore investment opportunities during the mission.
On the sidelines of Prime Minister Anthony Albanese's visit to Indonesia, Danantara signed a memorandum of understanding (MoU) with the Australian Government to boost long-term two-way investment. The MoU focused on accelerating investment, advancing Indonesia's economic transformation and reinforcing workforce capacity building.
The delegation also met with Indonesian conglomerate Astra International, with whom Austrade has a collaboration agreement to explore two-way trade and investment opportunities.
Strengthening the bilateral investment framework
Since the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) came into force in July 2020, two-way trade has almost tripled.
The inaugural Indonesia-Australia Business Roundtable provided both countries a platform to candidly discuss ways to improve the IA-CEPA to drive trade and investment growth. Results from the discussion will be jointly submitted to the general review of IA-CEPA. Businesses can input into the review before 31 March 2026.
During the mission, the second edition of Invested: Indonesia to 2040 - Opportunities and Pathways for Australian Investors (PDF, 4.5MB) was launched. Developed by the Investment Deal Teams in collaboration with the Indonesia Business Council, the publication provides practical guidance for Australian investors, including sector insights, bilateral developments, case studies, and government support and resources.
The mission reinforced that Indonesia's long-term economic fundamentals remain strong. While short-term volatility is expected, sustained engagement, being on the ground and developing trusted relationships with local stakeholders are critical to unlocking opportunities.
Austrade assistance
The Australian Trade and Investment Commission (Austrade) supports Australian outbound investment across Southeast Asia through the Investment Deal Teams, an initiative that brings together Austrade, Export Finance Australia and the Department of Foreign Affairs and Trade.
