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Australia, Indonesia vow to strengthen economic ties

Australia and Indonesia have signed an economic memorandum of understanding amid bleak warnings about a future global recession.

September 19, 2022
By Dominic Giannini
19 September 2022

Australia and Indonesia have pledged to increase economic cooperation ahead of a G20 finance ministers meeting. 

Treasurer Jim Chalmers met with Indonesian Finance Minister Mulyani Indrawati in Canberra on Monday to sign the memorandum of understanding.

The agreement will facilitate the exchange of departmental officials from both nations, with dialogue and cooperation to focus on areas such as tax policy and financial regulation.

Clean energy, climate financing and pension systems were also on the agenda. 

“That’s why we deepen and renew the MoU today, so we can continue sharing policy experiences in key reform areas and build capacity in both our departments,” Dr Chalmers said.

He also flagged facilitating further investment from Australia’s $3.4 trillion superannuation pool into Indonesia.

G20 finance ministers are due to meet in Washington DC in October.

The treasurer said the meeting came at a time of economic uncertainty, spurred on by Russia’s invasion of Ukraine, with warnings of another global recession.

“Let’s not mince words: our challenges are intensifying, not dissipating,” Dr Chalmers said.

“Inflation stalks the world, with central banks responding decisively and bluntly.

“Global growth is slowing (and) most risks are tilted to the downside.”

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