Business group says Indonesia-Australia trade deal, to be signed next week, will transform the business relationship. The trade relationship between Australia and Indonesia is clearly under- developed. In Indonesia was Australia's 13th largest trading partner, trailing. There is considerable opportunity for Australia to expand its trade, investment and economic cooperation relationship with Indonesia, which is.
In the realm of geopolitics, new institutions are emerging. An alphabet soup of new financial institutions reflect new power rivalries. Technology brings benefits but also sharpens the impact of change. The International Labor Organization estimates that 56 per cent of jobs in Cambodia, Indonesia, Thailand, the Philippines and Vietnam are at risk of replacement by automation over the next 20 years.
The Edelman Trust Barometer shows significant changes in how institutions are perceived in countries like Indonesia and Australia over the past three years. Managing and responding to change emerged as a common theme throughout the discussions at the 4th Indonesia-Australia Dialogue, hosted in Sydney by the Australian Institute of International Affairs this month.
Although Australia and Indonesia share values like democracy and a geographically strategic position in the Indo-Pacific region, change is affecting their societies in very different ways. In the Edelman survey, Indonesia reported higher levels of trust in government, media and business compared to Australia, which ranked among the most distrustful of these institutions.
Participants in the dialogue noted that religion in Indonesia is becoming more important, meanwhile Australian society continues along a secular trajectory similar to other Western countries. These differences could pose challenges for bilateral relations. However, when considering the bigger picture of global and regional issues, it becomes clear that Australia and Indonesia have overlapping interests.
Australia and Indonesia have worked together to achieve historic results in the past. Their cooperation on the resolution of the Cambodia conflict helped bring stability back to mainland Southeast Asia after decades of war. Today, both countries work together on a regional anti-terrorism forum. Between the two, they hold influential positions in every significant regional institution.
These examples suggest that despite the divergence of their societies, they hold a shared interest in regional outcomes and cooperation can be incredibly effective. In the current geopolitical landscape, there is an abundance of opportunities for Australia and Indonesia to influence how these changes eventually shape the region.
2. Australia's trade relationship with Indonesia
Cooperating in the region also means updating bilateral frameworks and agreements. Recent bilateral visits include: Both countries reaffirmed their commitment to strengthening bilateral relations in August by signing a Joint Understanding on the implementation of the Lombok Treaty, which provides an agreed approach to enhancing intelligence cooperation. Australia and Indonesia also work closely on a range of common strategic interests in regional and global fora.
Cooperation on counter-terrorism Australian and Indonesian authorities have cooperated closely to detect and deter terrorist attacks in Indonesia since the Bali bombings. Our counter-terrorism cooperation now involves a wide range of partnerships in law enforcement, legal framework development, criminal justice, counter-terrorism financing, countering violent extremism, defence, transport and border security, intelligence, and the security of chemical, biological, radiological, nuclear and explosive CBRNE materials.
More than 15, officials from 70 countries have completed over training courses at JCLEC on addressing transnational crimes — such as people smuggling and money laundering — as well as terrorism. Cooperation on combatting people smuggling Australia and Indonesia work closely together to combat people smuggling and human trafficking, including by co-chairing the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime.
We strongly support cooperative measures with Indonesia to improve border integrity and enforcement. We also continue to work with our regional partners to combat people smuggling and human trafficking, by strengthening legal frameworks and boosting the capabilities of criminal justice agencies and civil society organisations.
Trade and investment There is considerable opportunity for Australia to expand its trade, investment and economic cooperation relationship with Indonesia, which is the largest economy in South-east Asia and 16th largest economy in the world. Demand in Indonesia for consumer goods and services — particularly for premium food and beverages, education and healthcare, financial and ICT services and tourism — and its ambitious infrastructure investment agenda aligns well with Australian industry capabilities.
Agricultural products are among Australia's key merchandise exports to Indonesia, while crude petroleum and manufactured goods are key imports. IA-CEPA will create the framework for a new era of closer economic engagement between Australia and Indonesia and open new markets and opportunities for businesses, primary producers, service providers and investors.
Free trade deal to 'transform' Australia-Indonesia business relationship
Australia also works closely with Indonesia in in multilateral, global and regional fora, including the World Trade Organization WTOAPEC and the G20to support global and regional trade liberalisation and economic growth. Development cooperation Australia works in an economic partnership with Indonesia, supporting its efforts to leverage its own resources to generate growth and distribute those benefits to a larger number of its people.
Australia provides policy and technical advice that will improve the quality of Indonesia's investments in infrastructure, economic governance, human development and social policy. Priority areas include good governance, improved productivity and competitiveness, and human resource quality. It has a focus on eastern Indonesia to help address regional disparities in development, whilst maintaining growth momentum in other parts of the country. As outlined in our AIP, our development cooperation program in Indonesia is structured around three objectives, and a focus on women and girls is a cross-cutting theme of all of our programs.
Indonesia country brief - Department of Foreign Affairs and Trade
Australia is supporting Indonesia to boost inclusive growth and productive jobs through its public policy and regulatory settings. We are also working to increase access to agricultural markets for poor farmers in Eastern Indonesia, driving economic growth and improving food security in the region. Human development for a productive society Indonesia needs to drive the development of human capital to create the conditions for higher growth.
Our innovative education program works with schools to identify local challenges and opportunities to develop new approaches to tackle problems. We are also working with Indonesia to prevent, detect and control emerging infectious diseases, a threat to Indonesian and Australian security, and we continue to prepare for and provide support to Indonesia during times of humanitarian need. We are helping develop better quality economic and social protection policies based on research and analysis.
Education Indonesia and Australia enjoy a strong relationship in education.