Following President Prabowo Subianto’s visit to Australia on Nov. 12, Canberra has renewed efforts to encourage its domestic investors to step up investment in Indonesia, particularly in renewable energy and infrastructure projects. Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite said the Australian government was keen to strengthen cross-border investment flows, pointing to the country’s vast pension industry, which manages assets worth A$4.3 trillion (US$2.8 trillion) as of June. Historically, much of that capital has flowed into North America and Europe. However, the government is now seeking to redirect a portion of it toward Southeast Asia, including Indonesia.
In 2023, Australia launched a long-term policy framework titled “Invested: Australia’s Southeast Asia Economic Strategy to 2040”, aimed at encouraging institutional investors to tap high-growth markets in the region. One of the strategy’s main tools is the A$2 billion Southeast Asia Financing Facility, which provides loans, guarantees and equity to help unlock clean energy and infrastructure projects. The Australian government has also established a facility for infrastructure project preparation under the Indonesia–Australia Partnership for Infrastructure (KIAT), launched in 2016.
“Ports, airports, roads and rail—these are the kinds of projects Australian pension funds and investment banks have already backed in Southeast Asia. We’re looking for opportunities to support more of them,” Thistlethwaite said on Monday during an international media visit in Sydney.
He added that Australian investors, like their global counterparts, required regulatory certainty, including strong risk-mitigation measures and competitive returns. Austrade chief executive officer Paul Grimes echoed those views, noting that while pension funds naturally pursued strong returns, long-term engagement was equally critical for successful investment in Indonesia.
“We need to invest and build linkages, understand the market and ensure the relationship endures. It’s not a one-off thing. Our collaboration must benefit both sides,” Grimes said.
He identified the energy transition as a key frontier for joint investment, citing Australia’s strength in supplying raw materials and supporting industries for clean-energy technologies, including batteries.
“It’s not necessarily the mining itself, but all the services and technologies around it. Mining today is as much about equipment, engineering and services,” he said. “We are also looking to build manufacturing capability in Indonesia.”
Meanwhile, Austrade’s senior trade and investment commissioner for Indonesia, Stephen Skulley, said Australian missions and agencies in Jakarta had been instructed to align their programs closely with Prabowo’s policy priorities, including food security. This approach underpinned the Australian Agribusiness Mission to Indonesia on Nov. 10, which sought to explore opportunities beyond traditional beef and wheat exports. Skulley said the A$2 billion Southeast Asia Financing Facility had already supported three climate-focused investment platforms in the region. While he did not disclose specific projects or returns, he noted that Export Finance Australia’s Southeast Asia portfolio had expanded by 40 percent over the past three years.
On Oct. 27, Australian Prime Minister Anthony Albanese announced two commitments under the facility: a A$175 million investment in IFM Investors’ Asia-Pacific Debt Fund and a US$50 million contribution to a new Southeast Asia public-private partnership (PPP) fund launched by infrastructure specialist Plenary.
“The idea is to crowd in capital from superannuation funds. It’s still early days, but it’s generating strong interest,” Skulley said.
November 20, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/11/20/infrastructure-renewables-at-center-of-australias-ri-investment-push.html)