Indonesia and Australia renew economic partnership with AU$420 million
PROSPERA’s second phase will run from 2026 to 2035, targeting economic policy reforms, investment and job creation.
Indonesia and Australia have renewed their PROSPERA economic partnership, committing AU$420 million in grants over the next decade. The second phase, launched in Jakarta, will support policies intended to promote sustainable, climate-resilient and inclusive growth.
Running from 2026 through 2035, the programme will help develop and implement macroeconomic and financial policies. Its objectives also include widening market access, drawing foreign direct investment and creating high-quality jobs.
At the launch, Australian Foreign Minister Penny Wong said a more fragmented and volatile global environment made closer economic cooperation important. She said Australia wanted to support Indonesia’s pursuit of sustainable growth and resilience.
The initial phase ran from 2018 to 2026 and received AU$277 million in grants. Wong said it supported Indonesia during its 2022 G20 Presidency and 2023 ASEAN Chairmanship, as well as its continuing accession talks with the Organisation for Economic Co-operation and Development. The partnership also backed domestic reforms covering public finances, macroeconomic stability, industrial productivity and private-sector development.
Indonesian Finance Minister Suahasil Nazara said he expected PROSPERA to help lift economic growth and living standards across the country. Achieving that would require substantial improvements in productivity alongside strong capital investment, he said.
