Jakarta. The Indonesia Investment Authority (INA), the country’s sovereign wealth fund, announced Friday that it had recently signed a partnership deal with the Australian Embassy in Jakarta.

The memorandum of understanding (MoU) is set to pave the way for greater Australian investment inflows into Indonesia amidst Canberra’s attempt to deepen economic ties. The partnership is also quite timely as Indonesia tries to meet its goal of securing Rp 1,650 trillion (almost $101 billion) in combined foreign and direct investments throughout 2024. 

Under this MoU, INA will work alongside the embassy’s so-called investment deal team to identify assets and appropriate structuring to enable investor-ready opportunities for Australian institutions.

“Through this collaboration, we can catalyze significant Australian investment in key sectors vital to Indonesia's growth and development, enhance our economic ties, and deliver substantial benefits for both our countries,” INA’s chief executive officer Ridha Wirakusumah was quoted as saying in a press statement.

Australian Ambassador to Indonesia Penny Williams said that the upcoming Australian investments could create business and job opportunities for both economies.

The MoU built on Australian Prime Minister Anthony Albanese’s Southeast Asia economic strategy document which he announced last year. According to the document, Australia is eyeing Indonesia’s healthcare and green energy transition sectors, among others. 

Government data shows Australian investments in Indonesia totaled $172.3 million throughout the first quarter of 2024. Australia became Indonesia’s tenth largest foreign investor over the said period with the Australian money flowing into 2,195 projects. Indonesia recorded Rp401.5 trillion in combined investments throughout the first three months of 2024. Foreign direct investments made up 50.9 percent of what Indonesia had collected throughout the first quarter.