The UK and Indonesia will launch a strategic partnership in 2025 in a bid to boost trade and "drive economic growth".
A joint statement attributed to UK prime minister Keir Starmer and Indonesian president Prabowo Subianto has been released outlining the plans and stressing the importance of strengthening trade between the two countries in the months and years ahead. Published on 21 November, it explains how they have made a commitment "to drive economic growth" and want to see bilateral trade increase "to a level commensurate with the size of our economies."
"Recognising the magnitude of current global economic challenges, we agreed to pursue all avenues to boost trade between our countries, breaking down barriers to deliver growth and jobs in both countries," the statement continues. "We agreed to work towards a new Indonesia-UK Economic Growth Partnership, in order to drive increased trade and investment between our two countries."
News about the partnership was released on the same day that Starmer met with Subianto at Downing Street.
The UK government says the two leaders agreed that the strategic partnership "will deliver a more prosperous, secure and sustainable future for the people of both the UK and Indonesia via enhanced co-operation on trade and investment, climate and defence."
UK businesses have had a presence in Indonesia for more than a century, according to the Department for Business and Trade (DBT), and the market's emerging middle class has created significant opportunities for businesses with an eye on international expansion. "Indonesian consumers are typically young, IT savvy, highly receptive to advertising and interested in new international brands," the DBT says.
Plans for the strategic partnership represent the latest example of efforts to strengthen trade ties between the UK and Indonesia.
In October, the UK's export credit agency and Indonesia Eximbank signed a memorandum of understanding focused on ramping up cooperation on new projects, with a particular focus on Africa and the Indo-Pacific. In September, the UK's minister for development, Anneliese Dodds, undertook a visit to Indonesia and signed agreements related to critical minerals and development.
Southeast Asia's largest economy, Indonesia accounted for 0.2% of total UK trade in the four quarters ending Q2 2024. Exports to the country came to £1.6bn in the same period, a decline of 1.7% compared to the four quarters ending Q2 2023.