Indonesia, Australia renew AU$420-mln PROSPERA economic partnership

Jakarta (ANTARA) - The governments of Indonesia and Australia have officially renewed the Australia-Indonesia Partnership for Economic Development (PROSPERA), committing AU$420 million (approximately US$294.6 million) in grant funding over the next decade.

Australian Foreign Minister Penny Wong emphasized that sustaining bilateral economic cooperation is crucial amid an increasingly fragmented and volatile global landscape.

“That means we (should) cooperate even more closely to strengthen (our) resilience and prosperity. And that is what this next phase of PROSPERA reflects: an enduring spirit of cooperation,” Wong said during the launch of PROSPERA Phase II here on Thursday.

The first phase of the bilateral program ran from 2018 to 2026 with total grant funding of AU$277 million (US$194.3 million).

During that period, Wong noted, PROSPERA played an instrumental role in supporting Indonesia’s leadership agendas on the global stage, including its 2022 G20 Presidency, its 2023 ASEAN Chairmanship, and its ongoing accession talks with the Organisation for Economic Co-operation and Development (OECD).

The partnership has also supported Jakarta’s domestic structural reforms by improving public financial management, safeguarding macroeconomic stability, boosting industrial productivity, and fostering private-sector growth.

Scheduled to run from 2026 through 2035, PROSPERA Phase II will focus on formulating and implementing macroeconomic and financial policies aimed at driving sustainable, climate-resilient, and inclusive economic growth.

The program also seeks to expand market access, attract foreign direct investment, and create high-quality jobs.

“Australia both respects and wants to contribute to your (Indonesia’s) focus on sustainable, inclusive economic growth and resilience. We want to work with you to build prosperity and create new opportunities for your people,” Wong said.

Indonesian Finance Minister Suahasil Nazara said PROSPERA is expected to help Indonesia unlock higher economic growth and raise living standards nationwide.

He noted that achieving this growth trajectory will require substantial productivity gains coupled with robust capital investment.

“I welcome PROSPERA Phase II and express my appreciation for Australia's continued commitment to this partnership,” Nazara said.

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Reporter: Uyu Septiyati Liman
Editor: Primayanti
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