KONTAN.CO.ID - JAKARTA. JAKARTA – The Australian business mission to Indonesia this year is moving towards a more concrete phase. The Australia Indonesia Business Council (AIBC) sees increasing clarity in investment opportunities in Indonesia, particularly in the infrastructure sector supporting the government's priority programs, such as food, health, and waste management. Peter McGregor, National Treasurer of AIBC, stated that this year's mission differs from the previous year. If in 2025 the focus was still on understanding the Indonesian economy, the discussion has now moved to the stage of eliminating obstacles and building investment capabilities. "This mission is far more granular. We are discussing specific opportunities, certain sectors, organizations, and potential business partners. This is part of the process towards deepening Australia's investment in Indonesia," McGregor said in Jakarta, Wednesday, February 4, 2026.
Baca Juga: Indonesia Imports 1,300 Cows From Australia in Ambitious Dairy Plan He referred to the Nicholas Moore Report 2023, which divides the strengthening of Australia-Indonesia investment into four stages, from increasing awareness to deepening long-term investment. In this mission, AIBC brought 29 delegates from 20 organizations, including corporations already operating in Indonesia and institutional investors, especially pension funds. Collectively, these investors manage assets of about A$ 1.6 trillion or equivalent to US$ 1 trillion. While in Jakarta, the delegation met with several strategic stakeholders, from the Investment Management Agency (BPI) Danantara, Astra, the Ministry of Finance, the Ministry of Infrastructure, to the Ministry of Transportation. They also attended the Indonesia Economic Summit. According to McGregor, the delegation's perception has significantly changed compared to last year. "Last year, many were surprised by the enormous potential of Indonesia. This year, the conversation has shifted to real opportunities, clear investment paths, and potential partners for collaboration," he said.
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One sector that caught attention was infrastructure, even though President Prabowo Subianto's administration is known to emphasize more on human capacity building. McGregor believes this focus actually expands investment opportunities. "Social programs such as nutrition, health, education, and energy self-sufficiency still require large infrastructure, from supply chains to logistics. That's where investors see commercial opportunities," he said. From the Ministry of Infrastructure's presentation, Indonesia is estimated to need investment up to Rp 10,000 trillion to boost economic growth by 8% per year, or equivalent to A$900 billion - A$950 billion assuming an exchange rate of Rp 10,500- Rp 11,000/A$. At least a third of these investment needs are expected to come from the private sector. In addition to transportation and ports, waste management and water sanitation are also on the radar of Australian investors. McGregor mentioned that the waste issue in Indonesia has even reached a crisis level.
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"Astra itself expressed interest in entering the water, sanitation, and waste management sector. Of course, regulatory improvements, tariffs, and economic schemes are still needed to make this sector truly investable," he explained. Regarding regulatory dynamics, including the revocation of business permits in the plantation sector, McGregor emphasized that foreign investors pay great attention to stability, consistency, and transparency of regulations. Non-tariff issues such as licensing, taxation, and legal certainty are still considered major investment obstacles.
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However, he sees positive momentum through the five-year review of IA-CEPA (Indonesia-Australia Comprehensive Economic Partnership Agreement). AIBC will provide input from business actors so that non-tariff barriers can be reduced. Regarding the meeting with Danantara, McGregor stressed that no business agreement has been signed yet. However, the meeting was important to understand the structure of Danantara, which is now one year old and no longer just a concept. "We see the potential for Danantara to be transformational, like Temasek in Singapore. But this is a long-term process. The most important thing is that there is now an understanding and a dialogue platform for future collaboration," he said.
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