PALMOILMAGAZINE, JAKARTA – Indonesia is stepping up efforts to strengthen economic collaboration with Australia, focusing on productivity enhancement, human capital development, and long-term economic resilience.
Coordinating Minister for Economic Affairs Airlangga Hartarto recently met with Danielle Wood, Chair of the Australian Productivity Commission, alongside Australian Ambassador to Indonesia Roderick Brazier in Jakarta. The meeting underscored both countries’ commitment to deepening bilateral economic ties.
Amid ongoing global uncertainty, Airlangga emphasized that Indonesia remains focused on boosting productivity while improving efficiency to sustain economic growth.
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“Strengthening productivity, alongside efficiency measures, is essential to maintaining sustainable economic growth in today’s challenging global environment,” he said.
One of the key priorities discussed was the advancement of Indonesia’s e-government initiatives. The government sees digital governance as a strategic lever to improve efficiency and productivity, even as fiscal tightening measures are being implemented.
Airlangga also expressed strong support for the continuation of the PROSPERA program, a bilateral partnership aimed at advancing economic reform. In its second phase, Indonesia welcomes a greater role for the Australian Productivity Commission, particularly in delivering evidence-based policy recommendations to support national productivity reforms.
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Under PROSPERA Phase II, collaboration is expected to focus on developing a workforce that is more adaptive to rapid technological change. In addition, both sides highlighted the importance of formulating national strategies for the adoption of artificial intelligence as a driver of future productivity.
Tax reform was also raised as a key national priority. Airlangga stressed the need for this issue to be incorporated into the PROSPERA Phase II agenda, given its critical role in strengthening Indonesia’s economic fundamentals.
Meanwhile, Danielle Wood reaffirmed Australia’s readiness to expand cooperation, particularly in enhancing the capacity of public service sectors. This effort is expected to drive productivity gains, attract investment, and support sustainable economic growth.
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Closing the meeting, Ambassador Brazier reiterated Australia’s commitment to supporting Indonesia’s accession to the Organisation for Economic Co-operation and Development and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, marking a significant step toward deeper global economic integration.
Several senior officials accompanied Airlangga during the meeting, reflecting the strategic importance of the partnership as both nations navigate evolving economic challenges and opportunities. (*)
