Evaluating the importance of Australia-Indonesia economic relations

This chapter aims to review economic interactions and relations between Australia and Indonesia. We will discuss what form they take, what challenges arise from them and what we can learn from past interactions. Australia and Indonesia are both landand resource-abundant economies with large agricultural and mining industries. Both economies rely heavily on natural resources, especially on mineral resources. The Australian economy relies heavily on coal and ore and Indonesia has relied on oil and gas and, recently, also on coal. Both economies also export a variety of agricultural commodities, although the relative value of these exports has tended to decline over time, with the exception of palm oil exports from Indonesia.