The signing of a MoU between the Indonesian Investment Authority and the Australian Embassy in Jakarta capped a busy week during which initiatives announced by Prime Minister Albanese in September 2023 and March 2024, to bring more Australian investment and trade to Southeast Asia to tap the "exponential growth" of the ASEAN region, were highlighted in Jakarta: the new Australian Embassy Jakarta Investment Deal Team, the first business delegation under the new Australia Southeast Asia Business Exchange program, and a digital sector Launching Pad.
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| A MoU to support Australian investment into Indonesia was signed by Dr Ridha Wirakusumah, CEO of INA, and Australia's Ambassador to Indonesia, Ms Penny Williams and witnessed by Australia's Special Envoy for Southeast Asia, Mr Nicholas Moore, Business Champion, Prof Jennifer Westacott, and Members of the INA Executive Board / 27 June 2024 |
THE Indonesia Investment Authority (INA), Indonesia’s sovereign wealth fund, has signed a Memorandum of Understanding with the Australian Embassy in Jakarta to enhance collaboration and boost Australian investment in Indonesia.
Witnessed by Australia’s Special Envoy for Southeast Asia, Nicholas Moore, Australia’s
"Business Champion for Indonesia", Jennifer Westacott, and INA
Executive Board members, the MoU was signed by Ridha Wirakusumah, CEO of INA,
and Australian Ambassador to Indonesia, Penny Williams.
“This MoU represents a key advancement in attracting and fostering
Australian investment in Indonesia. Through this collaboration, we can catalyse
significant Australian investment in key sectors vital to Indonesia's growth
and development, enhance our economic ties, and deliver substantial benefits
for both our countries,” Mr Wirakusumah said.
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| Special Envoy Nicholas Moore |
Of the 10 priority sectors identified by the Special Envoy as offering the most potential for growth, the Prime Minister committed to immediately support three initiatives "that go to the heart of the strategy and are an investment in Australia’s economic future":
Investment Deal Teams (A$70.2 million over four years) based in the ASEAN region who will work with Australian investors, Southeast Asian businesses and governments to identify and facilitate investment opportunities.
Southeast Asia Business Exchange (A$19.2 million over four years) to boost two-way trade and support Australian exporters to enter, compete and grow in the fast-growing markets of Southeast Asia. This will include a trade and investment campaign to promote opportunities in Southeast Asian markets to Australian business and consumers.
Placements and Internships Pilot Program for Young Professionals (A$6 million over four years) which will help to build enduring links between Australia and Southeast Asian businesses.
"This strategy reinforces our intent and priorities to expand and diversify trade and investment between Australia and Southeast Asia," added Trade Minister Don Farrell, and "charts a pathway to help Australian exporters, investors, tourism businesses, higher education providers, and creative sectors."
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| Delegates 'landing' in Jakarta |
The Deal Team brings together experts from the Australian Trade Commission (Austrade), the Department of Foreign Affairs and Trade (DFAT) and Export Finance Australia (EFA), and has access to the also newly announced A$2 billion Southeast Asia Investment Financing Facility, administered by EFA, and other trade and investment initiatives to facilitate and crowd-in Australian private sector investment across Southeast Asia.
In Australia, the Australia Indonesia Business Council’s Chair for Investment,
Finance and Infrastructure, Peter McGregor agreed these initiatives represent concrete steps in implementing practical and workable arrangements
within the framework established by the Nicholas Moore ‘Invested’ report.
“These deepening relationships and agreements to communicate and cooperate
more closely should underpin meaningful growth in bilateral investment and
trade opportunities between our two economies,” he said.
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| Accompanying visiting Australian technology companies, the inaugural delegation of the A-SEABX program to Indonesia, Austrade launched its Jakarta Landing Pad, which will help Australian technology businesses expand into Indonesia as part of Indonesia's ongoing digital transformation. |
Australia Southeast Asia Business Exchange program
The investment MoU signing coincided with the first visit to Indonesia of a trade delegation
under the new Australia Southeast Asia Business Exchange program. A-SEABX aims to
increase two-way trade between Australia and Southeast Asia as well as raising
awareness of business opportunities and possible investments between Australian
and Indonesian companies.
The inaugural delegation, Australian technology companies showcasing their capabilities across cybersecurity, fintech and agtech, participated in the launch of an Austrade 'Landing Pad' in Jakarta
“The Landing Pad program will help market ready Australian technology scale
ups to develop an effective go-to market strategy and secure partnerships in
Indonesian markets, contributing to Southeast Asia’s continued digital
transformation,” said Daniel Boyer, Austrade Deputy CEO.
An MoU was also signed between Austrade and Asosiasi Fintech Indonesia
(AFTECH) to establish closer institutional cooperation and support Australia’s
first Landing Pad cohort to Indonesia.
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- Geoffrey Gold, editor and curator, Indonesia Australia Report