To support Indonesia's equitable and sustainable economic transformation, our development partnership will focus on outcomes that ensure:
- sustainable and equitable economic growth is supported, including in trade, investment and innovation
- human development, governance, service delivery, gender and disability equality are strengthened
- citizens, including vulnerable groups, benefit from improved governance, public infrastructure and services.
Australia and Indonesia are committed to promoting sustainable and equitable economic transformation and better integrating our two economies. We will do so through ODA and non-ODA investments. We support this transformation through programs in economic governance, trade, infrastructure, research, innovation, human development and regional equality.
In line with Invested: Australia's Southeast Asia Economic Strategy to 2040, Australia will foster government-to-government engagement, expand commercial links and support Indonesia in its ambitions to accede to the Organisation for Economic Co-operation and Development (OECD). Where appropriate, we will partner with development banks and other multilateral institutions to support Indonesia's sustainable and equitable economic growth objectives.
Australia-Indonesia Partnership for Economic Development (Prospera) Phase 2
$277 million, 2026–2035
Australia's economic governance partnership with Indonesia aims to foster more effective economic institutions and policies that contribute to strong, sustainable and inclusive economic growth. Prospera builds on over 20 years of Australian investment in Indonesia's economic governance that began in the aftermath of the Asian Financial Crisis of the late 1990s. Prospera activities are delivered by Australian Government agencies and contracted advisers working with around 30 Indonesian counterpart agencies.
Related link
Synergies and Collaboration for Service Delivery Acceleration (SKALA)
$160 million, 2022–2030
The program focuses on improving basic service provision to poor and vulnerable communities in less developed regions. The goal of SKALA is to help reduce poverty and inequality through working with stakeholders at the national and local levels to strengthen Indonesia's decentralised governance.
Related document
| Name of document | Year published | Type |
|---|---|---|
| SKALA Investment Design Document | 2021 | Design |
Related link
Innovation for Indonesia's School Children – Phase 3 (INOVASI)
$110 million, 2024-2031
INOVASI supports the Indonesian government in its efforts to improve Indonesia's basic education system to lift children's learning outcomes. Improved literacy and numeracy will contribute to Indonesia's human development and economic transformation objectives.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| INOVASI Phase 3 Design Update Document | 2024 | Investment Design |
Related link
Australia-Indonesia Partnership for Health Transformation (KITA SEHAT)
$100 million, 2025–2033
Australia-Indonesia Partnership for Health Transformation / Kemitraan Indonesia Australia untuk Transformasi Kesehatan (KITA SEHAT) is Australia’s flagship health investment in Indonesia, delivered over eight years with a value of up to $100 million. The program supports Indonesia’s health system transformation agenda by strengthening primary health care services to improve nutrition and reduce stunting, and to improve our shared health security with an integrated approach to human and animal health.
Related document
| Name of document | Year published | Type |
|---|---|---|
| Investment design document - Australia Indonesia partnership for health transformation | 2025 | Design |
Indonesia-Australia Comprehensive Economic Partnership Agreement Economic Cooperation Program (IA-CEPA ECP) – Katalis Phase 2.0
$40 million, 2026-2031
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered into force on 5 July 2020. It included a chapter establishing an Economic Cooperation Program, now known as ‘Katalis'. Katalis is a business development initiative helping to maximise the benefits of IA-CEPA through improved market access and increased two-way trade and investment.
Katalis Phase 2.0 is designed to build on the first phase of Katalis (2021-25) to support strengthening the bilateral economic relationship under the IA-CEPA and the Indonesia-Australia Comprehensive Strategic Partnership (CSP). Katalis will play a role to ensure governments, industry associations, and businesses in both countries are equipped to maximise the benefits under IA-CEPA, resulting in stronger bilateral trade and investment performance that contributes to inclusive and sustained economic growth.
A key evolution in Phase 2 is the increased involvement of Indonesia’s Ministry of Trade, reflecting its central role in advancing Indonesia’s trade and investment agenda. Katalis 2.0 has two interlinked pillars: IA-CEPA institutional architecture and policy reform; and skills, business, and inclusive growth. It works through practical partnerships and targeted technical support. It will engage directly with the private sector by establishing a Katalis Business Partnership Fund.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| IA-CEPA Chapter 15: Economic Cooperation | 2020 | IA-CEPA Agreement Text |
| Economic Cooperation Program (ECP) — Katalis Phase 1 Investment Design | May 2020 | Investment design |
| Katalis Phase 1 Mid-term Review and Management Response | May 2024 | Review and management response |
| Katalis Program Website | June 2024 | Program website |
| Australia and Indonesia launch Katalis 2.0 to build shared prosperity and resilience | July 2026 | Minister’s Media Release |
| Remarks at the Australia-Indonesia launch of Katalis 2.0 by Assistant Minister for Foreign Affairs and Trade and Assistant Minister for Immigration The Hon Matt Thistlethwaite MP | July 2026 | Minister’s Speech |
Related link
Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
World Bank Health Transformation Multi-Donor Trust Fund
$9.6 million, 2023-2027
Australia is providing funding through the World Bank-managed Health Transformation Multi-Donor Trust Fund (MDTF) to enable Indonesia's Health System Transformation Agenda that will strengthen primary and secondary health care, addressing critical gaps in accessibility and quality of health services for women and girls, people with disabilities, and building climate resilience. The MDTF assists in coordinating development partners' support to the Ministry of Health to maximise the impact of their contributions.
Related document
| Name of document | Year published | Type |
|---|---|---|
| World Bank Health Transformation Multi-Donor Trust Fund: design document | 2023 | Design |
Related link
Highlighting Indonesia's Health System Transformation
The Australian National University Indonesia Project – Phase V
$5.2 million, 2022-2026
Since inception in 1965, the ANU Indonesia Project has been at the forefront of Indonesian studies in Australia and internationally. DFAT has co-financed the Indonesia Project with ANU since 1980. The goal of the Indonesia Project is to contribute to research-based public policy in Indonesia and to build Indonesia literacy in Australia, and through these efforts, strengthen ties between our two countries.