Australia – Indonesia business relationship “at a crossroads” as Prabowo ascendancy set to dominate AIBC National Conference
Australian industry needs to have the right strategies in place in order to deepen economic engagement with Indonesia, Australia-Indonesia Business Council (AIBC) national president Jennifer Mathews says.
The AIBC is holding its National Conference in Sydney from November 11 to 13 with the theme The Time is Now / Sekarang Waktunya.
The Australia-Indonesia Centre is supporting the conference through its moderation by Indonesia director Kevin Evans (MC) and communications and outreach head Helen Brown (healthcare panel moderator).
Speaking to the AIC, Ms Mathews said the event was timely given Australia was “at a crossroads in its trade and investment relationship with Indonesia”.
“It is important to ensure that Australian industry is aware of this opportunity and has the right strategies in place to deepen economic engagement,” she said.
“Indonesia has in recent days transitioned to the new President, Prabowo Subianto and his new cabinet. Indonesia is ambitious and has been progressing quickly, increasingly focusing on what is important for its economy to mature.”
Ms Mathews said understanding these developments was important.
She referenced a speech by Penny Wong at the Asia Summit in September where the foreign minister talked about the “long and close relationship” Australia had enjoyed with Indonesia while also noting there was so much untapped opportunity.
Ms Mathews said the theme The Time is Now / Sekarang Waktunya was chosen to align with the Australian government’s Southeast Asia Economic Strategy to 2040 as well as emphasising the importance of acting now to take advantage of opportunities for Australian industry.
“With so much untapped opportunity in this important relationship, there is no time like now to deepen our engagement,” she said.
Ms Mathews identified some key recent developments for those keen to trade with Indonesia, including the announcement by the Australian government of a $2 billion facility to boost investment in Southeast Asia.
Major infrastructure projects such as the new capital city, Nusantara, may offer opportunities for Australian businesses (an MOU already has been signed between the Nusantara Capital Authority and the Canberra Capital City Authority) while new Halal regulations will have implications for exporters of food and beverages.
President Prabowo’s free lunch program is also being closely watched by Australian agriculture for opportunities to assist.
Ms Mathews said economic ties had strengthened through education where Australian universities were “leading the way in establishing a presence in Indonesia” and in healthcare where “we are seeing a strong demand for Australian healthcare infrastructure and services”.
“The timing of the conference so soon after the inauguration of President Prabowo presents an ideal opportunity for Australian business, particularly as Indonesia seeks to chart an expansionary path,” she said.
“This will be a thread throughout the conference particularly in the breakout sessions which will explore what the new government and its policies mean across specific industry sectors.”
The conference includes an energy segment, with both Indonesia and Australia striving for a cleaner future.
“Both Australia and Indonesia face similar challenges transitioning away from coal, and driving the new clean energy transformation,” Ms Mathews said.
“We have a lot to learn from each other and the Australian government is investing $200 million through its Indonesia Climate and Infrastructure Partnership.”
Delegates will also hear business success stories as well as the perspectives of a diverse range of organisations focussed on the bilateral relationship, including Investment NSW, Austrade, DFAT, Australia Indonesia Centre, IIPC, Indonesian Embassy and Consulates and the governments of the Northern Territory and Western Australia.
“I would like people to come away with a greater awareness of Indonesia, its economic and social transformation and the opportunity this presents for Australian industry,” Ms Mathews concluded.
Click here to register or obtain more information about the AIBC National Conference.