The Indonesia Investment Authority (INA), the nation’s sovereign wealth fund, has announced a strategic partnership with the Australian Embassy in Jakarta. This collaboration is set to enhance Australian investment in Indonesia, aligning with Canberra’s efforts to strengthen economic ties and Indonesia’s ambitious goal of securing Rp 1,650 trillion(almost $101 billion) in combined foreign and direct investments throughout2024.

Australian Ambassador to Indonesia Penny Williams and INA’s chief executive officer Ridha Wirakusumah recently signed a memorandum of understanding (MoU). This agreement will see INA working closely with the embassy's investment deal team to identify assets and structure opportunities that are attractive to Australian institutions.

Ridha Wirakusumah highlighted the potential benefits, stating, “Through this collaboration, we can catalyze 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.”

Australian Ambassador Penny Williams emphasized the partnership’s potential to create business and employment opportunities for both economies. The MoU builds on Australian Prime Minister Anthony Albanese’s Southeast Asia economic strategy, which identifies Indonesia’s healthcare and green energy transition sectors as key investment areas.

In the first quarter of 2024, Australian investments in Indonesia reached $172.3 million, making Australia the tenth largest foreign investor in the country. These investments spanned 2,195 projects, contributing to Indonesia’s total investment of Rp401.5 trillion, with foreign direct investments accounting for 50.9 percent.

This partnership between INA and Australia represents a significant step towards achieving robust economic growth and strengthening bilateral ties through strategic investments.