Indonesia was Australia’s 13th largest trading partner in 2017 accounting for 2.2% of Australia’s trading relationship. Australian goods and services exports were worth A$8.6b in 2017 with goods exports made up predominantly of crude petroleum, wheat, live animals and coal. Imports from Indonesia were worth A$7.9b consisting mainly of Tourism and petroleum.
Australia also exported A$1.6b of services to Indonesia in 2017—made up largely of education and tourism. There were close to 20,000 students studying in Australia in 2017 (3% of the total). There were also over 193,000 (2% of the total) tourist arrivals from Indonesia in 2017, a 7% increase from 2016.
The Indonesian consuming class —households with incomes of more than US$10,000 per annum—numbered 19.6 million in 2016 and is forecast to increase to 23.9 million by 2030.
Australia is expected to benefit from rising Indonesian consumer demand for education, finance, healthcare, information and communications technology, and tourism.
Indonesia is a marginal investor in Australia, owning a portfolio of just over $1b in 2017. Australia’s largest investors remain traditional markets—the US with A$897b and the UK with A$481b.
The stock of Australia’s investment in Indonesia is larger at A$10.7b (0.5% of the total in 2017). But the US (A$665b) and UK (A$333b) remain the leading destinations for Australia’s foreign investment.