{"id":66665,"date":"2021-08-24T12:32:05","date_gmt":"2021-08-24T02:32:05","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=66665"},"modified":"2022-03-18T10:28:26","modified_gmt":"2022-03-17T23:28:26","slug":"why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/","title":{"rendered":"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout"},"content":{"rendered":"
<\/figure>\n

Indonesia appears to be persevering with plans for its grand infrastructure rollout, likely to cost over US$400 billion, despite the Covid-19 pandemic\u2019s impact on the archipelagic nation.<\/p>\n

Australian businesses can join this endeavour through the Indonesia\u2013Australia Comprehensive Economic Partnership Agreement (IA-CEPA). The long-term pipeline of work could create links between Australians and Indonesians, help Indonesia to upskill its workforce and contribute to the sustainment of a specialist, skilled workforce in the Northern Territory.<\/p>\n

Between now and 2024, the Indonesian government intends to build or upgrade a range of airports, power plants, waste-to-energy facilities, mass-transit projects and the early stages of a new capital city to address inadequate infrastructure across the archipelago. However, Indonesia has critical workforce issues, identified by both its government and the Indonesian Chamber of Commerce and Industry. This includes critical shortages in the construction industry, in project management and project execution, and in numbers of specialist contractors, general workers and nationally and internationally certified personnel.<\/p>\n

Pre-pandemic, the government was aiming for approximately 40% of the infrastructure funding to be sourced from the state, 25% from state-owned enterprises and 35% from the private sector. While the full effect of the pandemic remains to be seen, especially with the most recent, devastating wave of Covid-19 in Indonesia, early indications are that these figures have changed and that a higher proportion of private-sector funding will be required.<\/p>\n

IA-CEPA, which came into effect in 2020, opens the door for Australian companies to engage in the rollout outside of a traditional financial investor role.<\/p>\n

Majority Australian-owned companies can now supply architectural, engineering, urban planning, project management, surveying and construction services in Indonesia. Consultants in those areas can operate on a cross-border basis, and Australian suppliers of specific technical and vocational education and training have guaranteed market access through majority-owned businesses.<\/p>\n

This could be a major boon for the NT, which suffers from a cyclical economy with pronounced peaks and troughs, historically driven by major projects and a transient skilled-worker population.<\/p>\n

Following the end of the construction phase of the Inpex LNG project, the territory economy contracted and many of the skilled workers the project attracted left to seek work elsewhere.<\/p>\n

However, the pandemic\u2019s impact in the NT has been less than was expected. Major projects in the pipeline and defence infrastructure spending, including more than $747 million for training infrastructure upgrades, appear to indicate that the worst of the contraction is coming to an end.<\/p>\n

This future pipeline of work will generate a larger skilled workforce in the NT and attract workers to the territory, but it is critical, now more than ever, that this workforce be sustained. The presence of a skilled workforce improves the flow of specialist skills to younger workers, reduces the cost of businesses having to pay for fly-in, fly-out workers, and encourages investment in the territory. Skilled workers in sectors relevant to infrastructure development in the NT gain expertise in undertaking large projects in remote locations to a high standard, suited to the territory\u2019s harsh environment and climatic patterns.<\/p>\n

The Indonesian infrastructure rollout could be a key part of the pipeline of work needed to sustain the NT\u2019s skilled workforce. The territory\u2019s proximity to Southeast Asia means Darwin is ideally placed to serve as a hub for Australian businesses engaging in Indonesian infrastructure projects. These businesses could base their workers in the territory and draw from a skilled local workforce on a cross-border basis on these infrastructure projects as is now permitted by IA-CEPA.<\/p>\n

Sustaining a skilled workforce in the NT is not just in the territory\u2019s interest; it is strategically important and in the national interest. The Australian government\u2019s 2020 force structure plan emphasises the need to build sovereign industrial capacity, which the Defence Department is working towards with its infrastructure spending. But for that industrial capacity to be maintained, there needs to be work in the pipeline to sustain it. The NT government cannot afford to fund the projects necessary for that sustainment, and the Australian government isn\u2019t necessarily willing to provide the funding either.<\/p>\n

While mechanisms are already available for businesses to engage in the Indonesian economy, Indonesia is a relationship-driven market. Territory businesses need help to get a foot in the door in Indonesia, and both the Australian and NT governments can play a key role in providing that support. The governments can help businesses build those critical relationships through skills exchange agreements at a provincial and business level. Such skills exchanges are stipulated in IA-CEPA and align directly with the Indonesian government\u2019s workforce development goals.<\/p>\n

If the foundational work is started now, and introductions are made, skills exchange agreements are negotiated and relationships developed, then by the time the current tranche of projects winds down in the territory, businesses will be ready to engage, or will be already engaged, in the Indonesian infrastructure rollout. That will ultimately contribute to the sustainment of the territory\u2019s industrial capacity.<\/p>\n","protected":false},"excerpt":{"rendered":"

Indonesia appears to be persevering with plans for its grand infrastructure rollout, likely to cost over US$400 billion, despite the Covid-19 pandemic\u2019s impact on the archipelagic nation. Australian businesses can join this endeavour through the …<\/p>\n","protected":false},"author":1391,"featured_media":66668,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[8,475,1005],"class_list":["post-66665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-indonesia","tag-infrastructure","tag-northern-australia","dinkus-north-of-26-south"],"acf":[],"yoast_head":"\nWhy northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist\" \/>\n<meta property=\"og:description\" content=\"Indonesia appears to be persevering with plans for its grand infrastructure rollout, likely to cost over US$400 billion, despite the Covid-19 pandemic\u2019s impact on the archipelagic nation. Australian businesses can join this endeavour through the ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/\" \/>\n<meta property=\"og:site_name\" content=\"The Strategist\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ASPI.org\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-24T02:32:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-17T23:28:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"673\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jaya Pastor-Elsegood\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:site\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jaya Pastor-Elsegood\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\",\"url\":\"https:\/\/www.aspistrategist.ru\/\",\"name\":\"The Strategist\",\"description\":\"ASPI's analysis and commentary site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.aspistrategist.ru\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-AU\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#primaryimage\",\"url\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg\",\"contentUrl\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg\",\"width\":1024,\"height\":673,\"caption\":\"JAKARTA, INDONESIA FEBRUARY 21: An aerial shot of the Mass Rapid Transit (MRT) construction site in Cilandak, South Jakarta, Indonesia on February 21, 2018. Jakarta has one of the world's highest densities and needs improvements for integrated transport systems. Currently, several constructions are underway to reduce traffic congestion, like the Light Rail Transit (LRT), Mass Rapid Transit (MRT), Bus Rapid Transit (BRT), highways, flyovers, and underpasses. (Photo by Eko Siswono Toyudho\/Anadolu Agency\/Getty Images)\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/\",\"url\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/\",\"name\":\"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist\",\"isPartOf\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#primaryimage\"},\"datePublished\":\"2021-08-24T02:32:05+00:00\",\"dateModified\":\"2022-03-17T23:28:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/47aed32356df41ae632c0ec016c83fc3\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.aspistrategist.ru\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/47aed32356df41ae632c0ec016c83fc3\",\"name\":\"Jaya Pastor-Elsegood\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ac6d112208d7a227a84bc4d29c780ae8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ac6d112208d7a227a84bc4d29c780ae8?s=96&d=mm&r=g\",\"caption\":\"Jaya Pastor-Elsegood\"},\"url\":\"https:\/\/www.aspistrategist.ru\/author\/jaya-pastor-elsegood\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/","og_locale":"en_US","og_type":"article","og_title":"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist","og_description":"Indonesia appears to be persevering with plans for its grand infrastructure rollout, likely to cost over US$400 billion, despite the Covid-19 pandemic\u2019s impact on the archipelagic nation. Australian businesses can join this endeavour through the ...","og_url":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/","og_site_name":"The Strategist","article_publisher":"https:\/\/www.facebook.com\/ASPI.org","article_published_time":"2021-08-24T02:32:05+00:00","article_modified_time":"2022-03-17T23:28:26+00:00","og_image":[{"width":1024,"height":673,"url":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg","type":"image\/jpeg"}],"author":"Jaya Pastor-Elsegood","twitter_card":"summary_large_image","twitter_creator":"@ASPI_org","twitter_site":"@ASPI_org","twitter_misc":{"Written by":"Jaya Pastor-Elsegood","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.aspistrategist.ru\/#website","url":"https:\/\/www.aspistrategist.ru\/","name":"The Strategist","description":"ASPI's analysis and commentary site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.aspistrategist.ru\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-AU"},{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#primaryimage","url":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg","contentUrl":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/08\/GettyImages-922819686.jpg","width":1024,"height":673,"caption":"JAKARTA, INDONESIA FEBRUARY 21: An aerial shot of the Mass Rapid Transit (MRT) construction site in Cilandak, South Jakarta, Indonesia on February 21, 2018. Jakarta has one of the world's highest densities and needs improvements for integrated transport systems. Currently, several constructions are underway to reduce traffic congestion, like the Light Rail Transit (LRT), Mass Rapid Transit (MRT), Bus Rapid Transit (BRT), highways, flyovers, and underpasses. (Photo by Eko Siswono Toyudho\/Anadolu Agency\/Getty Images)"},{"@type":"WebPage","@id":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/","url":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/","name":"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout | The Strategist","isPartOf":{"@id":"https:\/\/www.aspistrategist.ru\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#primaryimage"},"datePublished":"2021-08-24T02:32:05+00:00","dateModified":"2022-03-17T23:28:26+00:00","author":{"@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/47aed32356df41ae632c0ec016c83fc3"},"breadcrumb":{"@id":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#breadcrumb"},"inLanguage":"en-AU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.aspistrategist.ru\/why-northern-australia-must-play-a-part-in-indonesias-grand-infrastructure-rollout\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.aspistrategist.ru\/"},{"@type":"ListItem","position":2,"name":"Why northern Australia must play a part in Indonesia\u2019s grand infrastructure rollout"}]},{"@type":"Person","@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/47aed32356df41ae632c0ec016c83fc3","name":"Jaya Pastor-Elsegood","image":{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ac6d112208d7a227a84bc4d29c780ae8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ac6d112208d7a227a84bc4d29c780ae8?s=96&d=mm&r=g","caption":"Jaya Pastor-Elsegood"},"url":"https:\/\/www.aspistrategist.ru\/author\/jaya-pastor-elsegood\/"}]}},"_links":{"self":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/66665"}],"collection":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/users\/1391"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/comments?post=66665"}],"version-history":[{"count":5,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/66665\/revisions"}],"predecessor-version":[{"id":71287,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/66665\/revisions\/71287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/media\/66668"}],"wp:attachment":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/media?parent=66665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/categories?post=66665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/tags?post=66665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}