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Indonesia crucial to Western Australia’s future prosperity
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Flags of Indonesia and Australia with a white flag in the middle. (Shutterstock/-)
T
wo essential pillars underpin Australia’s prosperity: We are a great trading nation and an attractive place for foreign investment. Since the 1950s, our trade has expanded from wheat, wool and gold to include iron ore, liquefied natural gas, high tech manufactures and world class services.
Our export markets now extend beyond the United Kingdom and Europe to Asia, in particular China, Japan and Korea. Foreign investment has also shifted beyond the UK. Our top ten list now includes the United States, Japan, China and Singapore.
As Western Australia Treasurer Ben Wyatt pointed out in an erudite presentation to a Perth business breakfast last week, these shifts have coincided with the global economic center of gravity moving towards Australia. Between now and 2050, that global center will inexorably move south and west, even closer to Australia.
And most importantly, to Australia’s trade and investment powerhouse, Western Australia. This movement will be caused by India and Indonesia.
By 2050, most predictions see China, India, the US and Indonesia as the top four economies. These same predictions see Australia, now a top 15 economy, struggle to remain in the top 30!
To ensure our prosperity does not suffer, we must grow our trade and investment with India and Indonesia.
Success with only two out of the top four will not be enough. Over the decades, Australia has worked to grow our Indonesian relationship, with success on the political and security front.
