If you discovered a stock that would become the fourth most valuable listing across every global exchange in under a decade, would you hesitate to invest?
The Republic of Indonesia is exactly this kind of prospect. But it’s not a company; it’s a thriving nation of 281 million people; young, educated, and home to a burgeoning middle class with a surging demand for goods and professional services that underpins the nation’s region leading economic growth.
Under the shared vision of President Prabowo Subianto and his immediate Predecessor President Joko Widodo, the country has embarked on the path to a ‘Golden Indonesia’ . By 2045, it hopes to: Become the 5th largest global economy, attain an annual GDP of $7.3 trillion USD, deliver per capita income of $25,000 USD, and maintain an unemployment rate of or less than four per cent. These objectives are crowned and reflected in the construction of a new Capital City – Nusantara.
Our geographic proximity, interdependent defence interests, and shared pluralistic, democratic values have long been the basis for a natural bond of friendship. Beyond this, however, Australia and Indonesia have untapped commercial symmetries and complementarity which can form the basis of robust, multi-sectoral economic partnership and mutual prosperity.
Central to President Prabowo’s ‘Golden Indonesia’ is the development of the country’s downstream mineral industry by constructing refineries for raw minerals such as nickel, tin and bauxite. Expanded agricultural output is yet another nation-shaping priority; with the stated target of expanding harvestable land to four million hectares by 2029 and achieving food self-sufficiency soon thereafter. To sustainably power this progress, more than $52 billion AUD will be needed to develop nearly 50,000 kms of transmission lines across Indonesia’s vast archipelago. Indonesia has forthrightly acknowledged that its bold plan will necessarily require significant international investment; it seeks at least $90 billion in annual foreign investment per annum.
Commodities. Agriculture. Energy. These are the sectors in which Australia is a global leader. With a pool of more than $3 trillion AUD in patient, private pension-linked capital, we have the depth of resources required to practically enable these developments – while sharing in Indonesia’s rise as a global power.
Many Australian investors recognise the enormity of the opportunity, but can’t see past apparent cultural, linguistic, and regulatory barriers. Where some see difficulty, we look with confidence to our strengths. The Australia Indonesia Investor Dialogue, backed by the team at Fitzpatrick & Co, has the nous, knowledge, and networks to help you identify, assess, and solidify your investment in Indonesia – ensuring your profit helps build regional prosperity.
