Source: Australian Parliamentary Secretary to the Minister for Industry
At times of global uncertainty, resilience doesn’t come from retreating inward – it comes from reaching outward.
That’s the lesson of past economic shocks, and it’s one we must heed again as we confront the fourth major economic disruption in just 2 decades.
It’s also the principle guiding Australia and Indonesia’s engagement at this week’s G20 Finance Ministers and Central Bank Governors’ Meeting in South Africa.
We’re neighbours by geography, but partners by choice – and by the shared actions we take on the world stage.
Last year, we marked 75 years of diplomatic ties, 50 years since Australia became ASEAN’s first dialogue partner, and 25 years of cooperation in the G20.
Since then, we’ve modernised the ASEAN‑Australia‑New Zealand Free Trade Agreement and celebrated 5 years since IA‑CEPA was signed – a partnership that’s already seen our 2‑way trade double to $35 billion.
To build on this momentum, Indonesia and Australia have agreed to review the IA‑CEPA, so we can generate broader and deeper economic integration.
This review will also help ensure that the agreement remains relevant and continues to deliver value for our 2 economies.
This is just one example of how we’re deepening our economic relationship even further.
Subject to market conditions, Indonesia will also issue its first‑ever AUD‑denominated ‘Kangaroo bond’ in August – a vote of confidence and meaningful step forward, reflecting our deep bilateral ties.
This will open new pathways for Australian investors to find quality investment products, support Indonesia’s growth and strengthen financial integration.
It’s a practical example of the ambition that underpins our economic partnership – and the shared belief that resilience is built through cooperation, reform, and openness.
Together, Australia and Indonesia are helping lead this effort within the G20 – just as we have for a quarter of a century, since the Asian Financial Crisis first brought finance ministers and central bankers around the same table.
This year, our cooperation is more critical than ever.
Around the world, growth is softening, inflation has been sticky, and global trade is under pressure from fragmentation and rising geopolitical risk.
These challenges make our partnership – and our collective work in international forums – even more important.
Both Australia and Indonesia have shown remarkable resilience.
In Australia, inflation has moderated in a substantial and sustained way. Unemployment remains close to historic lows, real wages are growing again and we’ve delivered the first back‑to‑back budget surpluses in nearly 2 decades – alongside the biggest nominal budget turnaround in our history.
Indonesia, too, has performed strongly – recording one of the highest growth rates in the G20, with inflation and unemployment consistently at the lowest rates since 1998, supported by a rapid fiscal consolidation after the pandemic and the creation of more than 3.5 million new jobs in the past year alone.
This strength gives us momentum – but it doesn’t make us immune.
We need to stay focused on the long‑term foundations of growth: productivity, fiscal sustainability, and resilience.
Productivity, in particular, sits at the heart of both our national economic agendas – because it’s what drives better wages, better jobs, and stronger, more inclusive growth.
For Indonesia, lifting productivity will be vital to reaching high‑income status by 2045. In Australia, it’s central to building a more modern, more adaptable, more inclusive economy.
That means upskilling our workforces, attracting productive capital, and unlocking innovation – individually and together.
And we both recognise the importance of fiscal sustainability, having pushed down our debt to GDP ratios to pre pandemic levels.
Strong, responsible public finances are not just a fiscal shield – they’re a platform for long‑term investment, resilience and reform.
At this week’s G20, Australia and Indonesia are standing together to supports sustainable, inclusive growth and open, fair and transparent trade in the spirit of multilateralism.
Because in a world of churn and change, the right response is not retreat – it’s resolve.
You see that in our collaboration on IA‑CEPA. You see it through Australia’s Southeast Asia economic strategy. You see it in Indonesia’s new Kangaroo bond. And you see it in our shared ambition to build a more integrated and more prosperous Indo‑Pacific.
We’ve been close partners for decades. But in this moment of global challenge, we’re choosing to go further – and faster – together.