Australia, Indonesia Commit to Strengthen Economic Development Partnership

TEMPO.CO, Jakarta - Australian Ambassador to Indonesia, Penny Williams PSM, and Deputy Minister for International Economic Cooperation Coordination at the Indonesian Coordinating Ministry for Economic Affairs Edi Prio Pambudi signed an additional agreement to the Australia-Indonesia Partnership for Economic Development (Prospera) on Thursday, July 25, 2024. The new deal is expected to strengthen the long-standing economic development partnership between the two countries focusing on climate and energy. 

"This agreement was built on over two decades of economic development partnership between Indonesia and Australia and highlights the shared journey our countries will embark on through the climate and energy transition," said Edi Prio Pambudi.

Edi said Indonesia and Australia are strongly committed to implementing KINETIK, the Australia-Indonesia Climate and Infrastructure Partnership, strengthening the partnership between the two countries, and attracting more private investment in renewable energy and green industries.

Meanwhile, Ambassador Williams assessed that Prospera will allow Australia and Indonesia to collaborate and share knowledge in mutual critical sectors, including clean energy, digital transformation, and tax and economic policies.

Prospera supports strong, sustainable, and inclusive economic growth in Indonesia, contributing to the objectives of “Invested: Australia’s Southeast Asia Economic Strategy to 2040.” The program works with a range of Indonesia’s governmental agencies, supporting their priorities by providing evidence of policies that could boost private sector development, maintain macroeconomic stability, and contribute to improved government performance.

Australian Prime Minister Anthony Albanese previously expressed the country’s commitment to extend cooperation and friendship with Indonesia during his visit to Jakarta in June 2022.

Indonesia and Australia are close partners in trade, development, education, and regional security sectors. Albanese hoped both countries could build further ties, including revitalizing trade relations and promoting cooperation in climate, infrastructure, and energy sectors.

The Australian Embassy in Jakarta explained that both countries are keen to unlock the potential of the Indonesia-Australia Comprehensive Economic Partnership Agreement. Both parties also agreed to continue the proposed AU$200 million (approximately Rp2 trillion) infrastructure and climate fund for Indonesia.

Suci Sekarwati

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