Economists state that economic relations between countries are a function of size & distance. Those with large economies gravitate toward each other, as do those in close proximity.
Trade
Australian policymakers need to include the island states of the western Indian Ocean in our Indo-Pacific strategy, even if only in a fuzzy way.
Much more than only trade and investment, the Indonesian President has grander ambitions for the two neighbours.
You’ll no longer need to apply for a visa and fly south to study at some top Australian universities thanks to the ratification of a new trade deal.
Nowhere in the world are there three neighbours more different than the extraordinary triangle of Australia, Indonesia and Papua New Guinea.
Prioritising connectivity and reframing their economic ties as regional rather than bilateral could help foster a closer business relationship.
Through our work for the AIC, we helped to link hundreds of researchers, government departments, business partners and others in collaborative partnerships.
In 2018, less than 1 percent of Australia’s foreign investment went to Indonesia. Two-way trade with Indonesia has stagnated at around 2 percent for the entire decade.
