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Indonesia Could Be 10th Largest Economy: But here are the Challenges

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growing middle class. As such, if Australia wants to engage further with South-East Asia, ramping up its trade with the region’s emerging powerhouse will be of great importance. While Australia and Indonesia share strong ties in many areas, trade continues to lag.

The importance of trade to Indonesia cannot be understated. Indonesia’s former trade minister Mari Pangestu was a key contender for the role of Director-General of the World Trade Organisation. Had her candidacy progressed and she secured the top job, it would have further lifted Indonesia’s trade credentials and been confirmation of Indonesia’s emerging global profile.

Conclusion

Indonesia’s foreign policy, trade and defence involvement with key states active in the Indo-Pacific region is complex,...

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