New agreement to boost Australia-Indonesia ties

14 November 2022

A new agreement between Indonesia’s peak business group KADIN and the Business Council of Australia, signed alongside Prime Minister Anthony Albanese in Bali, will help expand trade, build economic opportunities and lift living standards in both nations, Business Council chief executive Jennifer Westacott said.

“We’re delighted to join with the Indonesian Chamber of Commerce and Industry (KADIN) at this week’s B20 Summit to agree to greater cooperation that leaves both of our nations better off. 

“Prime Minister Albanese is absolutely right to focus on building even stronger ties with Indonesia, and businesses are on board to help do it.

“This is a part of the government’s welcome reset on foreign policy which is strengthening Australia’s strategic position and strengthening our economic and cultural ties across the region.

“The government has rightly made our relationship with Indonesia a priority, and businesses from both nations agree.

“We welcome this chance to get on with the job of building relationships, cooperating on the sidelines of the G20 meeting in Bali and pursuing practical opportunities that benefit people in Australia and in Indonesia.  

“By some estimates Indonesia is set to be the world’s fifth largest economy by 2030, so the opportunity for Australia is huge in areas like education, clean energy and agriculture.

“It’s businesses that trade not governments, so we welcome this chance to build relationships and explore opportunities for two way investment that creates jobs, gets new industries off the ground and makes our region stronger.

“It’s crucial that business form strategic partnerships with Indonesian companies because this economy will be critical as we diversify our supply chains and in particular as we cooperate to decarbonise energy supply chains. 

“Businesses in Indonesia and Australia are eager to lock in the benefits of the Indonesia-Australia Comprehensive Economic Partnership Agreement, including by giving Australian businesses greater access to one of our closest neighbours and one of the region’s biggest markets.

“One of the best ways to create new opportunities for Australian workers is a growing economy fuelled by new investment and easier access to global markets. For Indonesia, better trade will deliver the economic opportunities needed as it continues to develop and lift living standards for its people.

“We hope this visit will help diversify Australia’s trade and strengthen our economic and cultural relationship with one of our closest and largest neighbours.”

Read the full MoU here.  


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