Extracted from the Australian Government Australia in the Asian Century, Towards 2025, Indonesia Country Strategy:
This country strategy takes forward the objective of the Australia in the Asian Century White Paper: for Australia to build stronger and more comprehensive relationships with countries across the region. Because of their size, economic links with Australia, and strategic and political influence in the region and globally, China, India, Indonesia, Japan, and the Republic of Korea were identified as the initial priority countries for the development of country strategies.
Indonesia is a rising regional power and an emerging global player. Combined with its geographic proximity to Australia, this makes Indonesia a vital strategic partner in the Asian century.
Modern Indonesia has a growing economy; a young and dynamic population; and a diverse, democratic and social media–savvy culture. The country’s economic future matters to Australia. A stable, democratic and prosperous Indonesia is squarely in Australia’s interests.
Indonesia’s annual GDP growth is projected to average more than 6 per cent between 2013 and 2025. As Indonesia’s economy grows, so too will its ‘consuming class’, and with it the demand for consumer goods and services.
While development challenges (such as infrastructure and skills deficits) do remain, the strength of Indonesia’s economy has the potential to open up new opportunities for Australia and Australian business.
Strong economic growth is helping the country reduce poverty levels – the World Bank reports that between 1999 and 2011, the national poverty rate fell from 23.4 per cent to 12.5 per cent. Indonesia has also invested in basic services, particularly education.
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