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Describe The Relationship Between Australia And Indonesia

458 Words2 Pages

I.2 Problem Identification
As explained previously, since Indonesia is one of important bilateral relations for Australia and vice versa, both countries committed to have strategic partnership in development cooperation in which Australia is the second largest bilateral donor to Indonesia. Meanwhile, the most challenge of development faced by Indonesia is about poverty. By the increasing number of poverty in Indonesia that happened due to some causes, it will affect Australia with the decline in some aspects such as trade, investment, and business, because Indonesia is an important market for Australia. According to DFAT, Australia only 12th biggest trade partner with Indonesia with the decreasing at 800 million in 2014 to 600 million in 2015, Australia business has decreased from 6.9% in 2014 to 6.7% in 2015, and only have 0.7% investment in 2014 with total amount 3.4 billion, and Indonesian student enrollments in Australia decreased from 9.555 to 8.772. …show more content…

First, due to lack of services and infrastructure, become common causes of poverty affect the decline of Australia trade because the difficulties in distribution and barriers to entry. Secondly, lack of financial regulation as cause of ineffective governance create lack of confidence in Indonesia as a place to invest in. The last is unskilled Indonesian workforce makes hard for Australia business to work in Indonesia, employed Indonesian workforce and doing skills transfers. According to DFAT, those things mentioned happened due to the high index of barriers in Indonesia for Australia business and investment, which are business service at the rate of 1 per cent, 0,6 per cent for Infrastructure, 0,5 for Finance regulation, 0,7 per cent for education, and 0,8 per cent for the barrier on

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