Australian businesses are pouring money into Indonesia, thanks to a recent strengthening of ties between the two nations. At least five Australian companies have pledged investments in Indonesia, marking a significant step forward in economic cooperation between the neighboring countries. This announcement came during President Prabowo Subianto's visit to Australia on November 12, 2025, a reciprocal trip following Prime Minister Anthony Albanese's visit to Jakarta. Investment Minister Rosan Roeslani revealed that these investments will cover a range of sectors, including healthcare, downstream industries, and agriculture. He noted that two of these companies have already invested in Indonesia and are now looking to expand their operations. The Indonesian government is set to support these investments, particularly in agricultural cooperation, with a focus on livestock and cattle farming. One major investment project, possibly through Danantara, is in the works, aiming to boost agribusiness. This trip also serves as a chance to strengthen bilateral relations and expand cooperation under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which has been in effect since 2020. The agreement aims to boost investment, trade, and other areas of cooperation. However, Indonesia still faces a trade deficit of nearly US$9 billion with Australia, despite total trade reaching US$15 billion. To address this, the government is looking to diversify trade and investment cooperation, emphasizing the services sector's role in sustaining economic ties. The number of Australian tourists visiting Indonesia, especially Bali, has reached almost two million, contributing to the services sector's balance. The government aims to encourage more tourists to explore beyond Bali, supporting local economies and reducing regional development gaps. Both countries have identified renewable energy, critical minerals, and food security as key areas for cooperation under IA-CEPA. Minister Rosan highlighted the significant untapped potential in the partnership, particularly in sectors like nickel downstreaming, healthcare infrastructure, and agritech. He expressed the goal of fostering a more balanced, mutually beneficial relationship that supports sustainable economic growth on both sides.
