ASIATODAY.ID, JAKARTA — Australia is strengthening its economic partnership with Indonesia through an innovative financing initiative designed to unlock new investment, support small and medium enterprises (SMEs), and accelerate sustainable economic growth across Southeast Asia’s largest economy.
Through Australian Development Investments (ADI), the Australian Government is providing an initial investment of AUD 11.62 million to mobilise additional philanthropic capital from Australia. The initiative will be further supported by AUD 12.57 million in investments from Minderoo Foundation, Paul Ramsay Foundation, and LEEAF Trust.
The combined commitment represents a new model of blended finance, bringing together government funding, philanthropic capital, and private sector participation to expand access to long-term financing for sustainable development projects in Indonesia.
Supporting Indonesia’s Green Economy Transition
The partnership will support Indonesian SMEs operating in strategic sectors including agriculture, agroforestry, and aquaculture, helping them scale their businesses, attract further investment, and create new economic opportunities in local communities.
Beyond economic growth, the initiative will also contribute to climate resilience, environmental protection, job creation, and greater gender equality across Indonesia.
The programme forms part of Australia’s broader commitment to implementing “Invested: Australia’s Southeast Asia Economic Strategy to 2040”, which identifies Indonesia as a key partner in building a stronger, more integrated, and sustainable regional economy.
Australia and Indonesia’s Shared Economic Future
Australia’s Minister for International Development, Small Business and Multicultural Affairs Dr Anne Aly, said a stronger and more prosperous region would create greater opportunities for both Australia and its neighbours.
“Indonesia is one of Australia’s closest neighbours and most important trading partners. When Indonesia is resilient and prosperous, Australia benefits too,” Dr Aly said.
She highlighted that combining public investment, philanthropic funding, and private sector capital would help unlock financing for SMEs that create jobs, strengthen livelihoods, and build more sustainable local economies.
“Australia’s future is deeply connected to the future of our region. Investing in Southeast Asia’s resilience and prosperity is a critical national interest for Australia,” she said.
Mobilising Capital for Sustainable Landscapes
Minderoo Foundation CEO John Hartman said the partnership demonstrates the importance of collaboration between government, philanthropy, and private investors in accelerating environmental solutions.
“This investment reflects Minderoo Foundation’s commitment to mobilising capital to drive positive environmental change at scale,” Hartman said.
He added that working with Australian Development Investments would help unlock the long-term financing needed to protect critical ecosystems and support sustainable agriculture in Indonesia.
Meanwhile, Ben Smith, Director of Investing and Impact Capital at Paul Ramsay Foundation, said the organisation’s investment alongside ADI through the Asia Climate-smart Landscapes Fund reflects its commitment to creating meaningful impact.
“Working alongside like-minded investors to create meaningful impact is central to our investment strategy,” Smith said.
A New Chapter in Australia–Indonesia Economic Cooperation
The latest initiative highlights the deepening economic relationship between Australia and Indonesia, particularly in areas of sustainable investment, climate action, and inclusive economic development.
By combining government resources with philanthropic and private capital, Australia aims to establish a stronger financing ecosystem that supports Indonesia’s transition towards a greener and more resilient economy.
The partnership also reinforces the shared vision of both countries to build long-term prosperity and strengthen economic cooperation across the Indo-Pacific region. (AT Network)
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