Indonesian Vice Minister of Foreign Affairs, Pahala Nugraha, is actively promoting mutually beneficial trade and investment cooperation with Australia. Discussions with Australia's Deputy Minister of Trade and Deputy Minister of Manufacturing, Tim Ayres, emphasized the potential for collaboration during their recent meeting in Jakarta. Efforts are focused on achieving a balanced trade balance by optimizing the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) implementation, addressing non-tariff barriers for Indonesian commodities such as fisheries and fruits. Both countries are committed to enhancing cooperation in critical minerals and the rapidly growing energy sector, utilizing complementary resources to support energy transition and achieve net-zero emissions, ensuring Indonesia's fair share. Australia recognizes Indonesia's demographic and economic significance, expecting it to be one of the world's largest economies by 2040. Australia aims to collaborate fully with Indonesia, supporting economic opportunities and trade diversification. Progress has been made in cooperation regarding electric vehicles and batteries, emphasizing diversification and strengthening supply chains and production processes.
Australia views Indonesia as a strategic partner in ASEAN for trade and investment, aiming to bolster regional economic growth by contributing expertise in renewable energy, agriculture, mining, education, and healthcare investments. Efforts are underway to synchronize strategies with existing ASEAN mechanisms, particularly in the digital economy and energy transition sectors, to maximize regional benefits. Despite global challenges such as inflation risks from the Russia-Ukraine conflict, Indonesia's resilient economy surpasses expectations, offering significant growth potential in the ASEAN region. Australia supports Indonesia's economic growth aspirations and regional leadership, endorsing its OECD membership. This reinforced commitment aims to capitalize on Indonesia's economic potential, benefiting both nations through enhanced trade, investment, job creation, and economic growth. Bilateral economic cooperation will extend to strategic areas such as education, research, and development, with positive impacts on technology transfer, skills enhancement, and tourism industry growth, ultimately contributing to Indonesia's national development goals.
