To help business seize new opportunities offered by the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), the Government has launched a Blueprint for Trade and Investment with Indonesia.

The Blueprint highlights opportunities in the sectors of health and aged care; education, training and skills; agriculture and food; and resources and energy services. It also signals future opportunities in sectors that will likely emerge from Indonesia's changing regulatory environment and digital growth.

Indonesia is on track to be one of the world's ten largest economies by the mid-2030s and the fourth largest economy by mid-century. A rising middle class, expanding population and digitalisation are changing Indonesia's business scene. This transformation in such a near neighbour offers huge opportunities for Australian businesses.

Indonesia is an increasingly urbanised democratic nation with one of the world's fastest growing consumer markets. Its middle class is at least 52 million strong, or one Indonesian in every five, and is steadily growing. An ‘aspiring middle class' adds a further 115 million. With steady growth of around five per cent pre-COVID, economic forecasters predict a return to this growth in 2022.

Despite the impacts of COVID-19, Indonesia's economy has proven remarkably resilient. Looking ahead, the World Bank projects Indonesia's economic growth in 2023 to be 5.1 per cent (real GDP), comparable to Australia's other trading partners, like China (5.3 per cent) and India (6.5 per cent).

Australia has well-established economic, trade and investment ties, made even stronger through the IA-CEPA which entered into force in 2020.

In Indonesia, basic universal healthcare is expanding while the growing middle class seeks more premium services at home, rather than abroad, creating opportunities for Australian businesses in aged care, training for carers, digital health and medtech.

Indonesia is seeking to add 57 million skilled workers to the country's economy by 2030. Achieving this will require more international education and technical training partnerships, which Australia is well placed to provide.

As one of the world's foremost producers of safe, high-quality and nutritious foods, Australia has a well-established reputation in Indonesia. We are well placed to meet Indonesia's growing demand for premium, healthy and safe food products.

Likewise, moving beyond basic mining and securing Indonesia's resources and energy future is critical due to population and policy changes. Australia's resources and energy services sectors have long had a good reputation in Indonesia for best practice and this extends to Australian companies in other parts of these sectors.

In Indonesia, relationships based on trust and commitment are key to doing business. Now is the time for Australian businesses to start investing in building relationships in Indonesia to reap long-term rewards.

Enquiries on the Blueprint or trade and investment with Indonesia can be emailed to: IndonesiaBlueprint@dfat.gov.au