Anthony Albanese puts trade and investment ties at heart of Indonesia relationship
Anthony Albanese will lead a major ministerial and business delegation in Jakarta next week, with trade and investment his focus.
Boosting trade and investment with Indonesia will be at the top of Anthony Albanese’s agenda during his trip to Jakarta next week at the head of a major ministerial and business delegation.
The Prime Minister will fly out on Sunday accompanied by Foreign Minister Penny Wong, Trade Minister Don Farrell, Industry Minister Ed Husic and Northern Territory MP Luke Gosling.
They will be joined by a high-level business delegation, as the new Labor administration looks to unlock the potential of the Indonesia-Australia free-trade agreement signed by the former Morrison government.
China’s surging regional influence and the upcoming G20 leaders’ meeting in Bali will also be on the agenda, with Mr Joko expected to push Mr Albanese for an assurance that he will attend the summit if Russian President Vladimir Putin decides to join the talks.
Mr Albanese and Indonesian counterpart Joko Widodo will use the visit to get to know each other, cementing the key bilateral relationship during annual Australia-Indonesia leaders’ talks.
They will discuss bilateral trade and investment, co-operation on climate and energy, and how the nations will work together to address regional and global challenges.
In Jakarta, Mr Albanese will also meet with ASEAN Secretary-General Dato Lim Jock Hoi to discuss the government’s commitment to Southeast Asia.
“Indonesia is one of our closest neighbours, which is why I committed to visiting as soon as possible,” Mr Albanese said.
“Our two countries have a long history of co-operation and friendship, and my government will work with Indonesia to deepen this.
“We partner together closely on issues of trade, development, education, and regional security.
“During my visit, I look forward to building our ties further, including to revitalise our trade relationship and promote climate, infrastructure and energy co-operation.”
The agenda will include discussions on the countries’ comprehensive economic partnership agreement, including Australia’s proposed $200 million climate and infrastructure fund with Indonesia.
Asia Society executive director for policy Rucard Maude, who led the federal government’s foreign policy white paper task force in 2017, said the trip was a vital one to set the tone of bilateral relations with Australia’s key Southeast Asian partner from the beginning of Mr Albanese’s prime ministership.
“A longstanding area of weakness in the bilateral relationship has been low levels of investment and a weak on-the-ground commercial presence in Indonesia.
“That is a hard problem to fix. It requires constant attention and encouragement of Australian businesses, to see how the regulatory landscape in Indonesia is changing and look for opportunities in the new consumer economy, and in sectors like vocational education, clean energy, health and the digital economy.”
Senator Wong said Australia’s relationship with Indonesia had never been more important.
“The Australian government is serious about our engagement in Southeast Asia, and this visit demonstrates the importance we place on our partnership with Indonesia,” she said.
“We share a fundamental interest in promoting a more prosperous, stable and secure region, where sovereignty is respected.”
Mr Albanese’s visit to Jakarta comes as new figures show soaring trade in goods between the two countries last year, including a massive jump in Australian commodities exports that have contributed to the Indonesian economy’s bounce back from a pandemic-induced slump.
Bilateral trade figures rose more than 76 per cent in 2021, thanks in large part to a boom in Australian exports of coking coal, iron ore and wheat, with Indonesia’s trade ministry crediting the figures to the Indonesia Australia Comprehensive Economic Partnership Agreement, which came into force in July 2020.
While some in Indonesia have questioned the effectiveness of the sprawling trade deal, Indonesia’s bilateral trade negotiations director Johni Martha said two-way goods trade with Australia rose to $US12.6bn ($15.81bn) in 2021, up from $US7.15bn the year before.
The uptick means Indonesia was among Australia’s top 10 export destinations in 2021, after wheat exports increased almost fivefold to $1.8bn and coal sales almost trebled to $1.618bn.
Indonesian exports to Australia reached $US3.2bn, up 28.62 per cent, while Australian exports jumped 102.84 per cent to $US9.4bn thanks to a bumper 2021 wheat crop and a sharp hike in demand for high-quality coking coal and iron ore.
More Coverage
Climate Active exodus lifts fears
Labor to continue with voluntary emission offset scheme despite a spate of companies leaving amid concerns about the validity of some credits.
Farming family fury at ‘peanuts’ deal
A company linked to a deregistered international student kingpin scored a quick $22m profit in a land deal that has left elderly hobby farmers feeling they were paid ‘relative peanuts’ for the site.