Indonesia Pushes for Food and Infrastructure Cooperation with Australia

The Indonesian government is encouraging stronger cooperation with Australia in the food and infrastructure sectors through the Indonesia–Australia Business Summit (IABS) for Indonesia Updates 2026, as part of efforts to deepen the strategic economic partnership and offer investment in priority sectors. In an official statement on Thursday, Deputy Minister for Investment and Downstreaming and Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said Indonesia continues to maintain its economic growth momentum by strengthening investment as the main engine of national growth. He stated the government is targeting 8 per cent economic growth through President Prabowo Subianto’s Astacita agenda, which focuses on food security, energy security, and industrial downstreaming. Speaking at the forum held in Sydney, Australia, on 30 June, he added that the government is targeting investment realisation of Rp3,414 trillion by 2029 and is opening up various investment opportunities in priority sectors, ranging from renewable energy, industrial downstreaming, and food security to semiconductors, export-oriented manufacturing, health, the Nusantara Capital City, education, and the digital economy. “Indonesia and Australia are at a very opportune moment to strengthen investment partnerships. The two countries have complementary economies, supported by an increasingly mature IA-CEPA framework. The Indonesian government continues to reform the investment climate through licensing simplification, the provision of fiscal and non-fiscal incentives, and the development of industrial zones and special economic zones,” he said. He therefore invited Australian investors to invest in Indonesia, focusing on strengthening infrastructure and food security. “We invite Australian investors to be part of a new chapter in Indonesia’s economic growth through investments oriented towards downstreaming, infrastructure, food security, energy transition, and the green economy,” Todotua added. During the series of events, a Memorandum of Understanding (MoU) was also signed between the Australian Chamber of Commerce and Industry (ACCI) and the Indonesian Chamber of Commerce and Industry (Kadin) regarding cooperation in trade, investment, and the development of business relations between the two countries.