Indonesia’s proximity and emerging global market economy present significant opportunities for Australian organisations. As one of our closest neighbours and trading partners, it can however prove tricky for Australian businesses to navigate its legal and regulatory environments, including wider cultural and political issues.
In recent weeks across Melbourne and Sydney, Asialink Business in partnership with DFAT and KPMG have launched The Executive Briefing on Indonesia, a series of national closed-door executive briefings curated specifically for leading Australian companies to build upon Prime Minister Albanese’s recent visit to Indonesia. Each of these briefings brings together C-suite executives from ASX-listed and/or large private companies across key cities and sectors.
Business representatives with experience and operations in Indonesia, many of whom also travelled with the Prime Minister’s business delegation to Indonesia, have been invited to share their perspectives on the opportunities and challenges they see in doing business with Indonesia to stimulate meaningful discussion about engagement with this market.
Each sector aligns with and builds upon the Australian Government issued Blueprint for Trade and Investment with Indonesia – providing practical and strategic guidance for Australian businesses considering market opportunities in the Indonesian economy for the first time.
The sectors include:
- Health and Ageing: Indonesia’s healthcare system is fragmented and lacks the necessary public service delivery infrastructure, resources, and workforce capabilities to deliver the high-quality health and aged care services that its population needs. COVID-19 has highlighted the urgency that the government needs to address these gaps and hasten the country’s development of a digital health ecosystem. Guest speakers have included Anthony Bishop, President, APAC & Latin America, Cochlear and Moazam A. Shah, Chief Financial Officer, Aspen Medical providing insights on their success, opportunities for growth, setting up a joint venture in Indonesia and tips for businesses to navigate the business, political and regulatory environment in Indonesia.
- Education, Skills and Training: Developing Indonesia’s human resources is a key priority for the government to ensure the country’s sustainable long-term economic growth. Approximately 50 per cent of Indonesia’s population is under the age of 30, however, Indonesia’s low-quality education system does not maximise the benefits of this demographic dividend. There is considerable disparity between the skills of Indonesian graduates and those needed by employers. Opportunities exist for Australian education providers to build Indonesia’s skilled workforce and strengthen the quality of its education sector, as Australia has an excellent reputation for high quality education in Indonesia with more than 13,000 Indonesian students choosing to study in Australia in 2022. Guest speakers included Professor Andrew MacIntyre, President, Monash Pro Vice-Chancellor who explored the immense opportunities that go beyond the education sector, and the importance of more business champions to speak out on the risks of not investing in the market, and Professor Nick Klomp, Vice-Chancellor and President, CQ University Australia who shared how they were committed to long term partnerships in the Indonesian market with an emphasis on the importance of a physical presence through their Executive Education Centre in Jakarta.
- Superannuation and Investment: The Hon Greg Combet AM’s visit to Indonesia has put renewed focus on trade and investment opportunities. The economic and strategic reasons for businesses to look again at Indonesia are compelling. Indonesia is the 16th largest economy, with 5.2% forecast growth in 2022 it is on track to be a top ten economy by the mid-2030s. It is increasingly attracting foreign investors, with FDI in Q1 2022 hitting a record high of US$10bn, up 10% YOY. Guest speakers included Frank Kwok, Senior Managing Director and Head of Asia Pacific for Real Assets, Macquarie Asset Management, who explored the economic and demographic tailwinds Indonesia is making in becoming an appealing market, and Damian Graham, Chief Investment Officer, Aware Super, who shared insights on Indonesia’s newly established sovereign wealth fund, the Indonesia Investment Authority (INA).
Source: AsiaLink Business