Austria remains a crucial trade partner for Indonesia in Central Europe, with bilateral trade volumes consistently rising. Last year, trade between the two nations approached USD 500 million, marking a 9.8% increase.
On Tuesday, June 25, 2024, Indonesian Foreign Minister Retno Marsudi held a bilateral meeting with Austrian Foreign Minister Alexander Schallenberg in Vienna.
During the meeting, Retno discussed several key issues, starting with trade and investment. “Austria is one of Indonesia’s main trade partners in Central Europe, with trade values increasing year by year. For instance, last year our trade value reached nearly USD 500 million (IDR 8.2 trillion), a 9.8% increase from the previous year. We agreed to expedite the Indonesia-EU CEPA negotiations to further strengthen trade and investment relations between our countries,” Retno stated in an official release on Wednesday, June 26, 2024.
On the investment front, Retno noted significant growth. Austrian investments rose by 51% last year compared to 2022, with project values exceeding USD 100 million (IDR 1.6 trillion), including projects in hydropower plant construction and transport technology.
“I continue to encourage greater investment from Austria in Indonesia, especially in renewable energy, green energy, digital economy, creative economy, and tourism infrastructure,” she added.
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Additionally, the Indonesian Foreign Minister invited Austria to participate in the second Indonesia-Europe Business Forum in Jakarta, scheduled for October.
Retno also discussed educational cooperation and capacity development with Schallenberg. A new cooperation agreement beneficial to Indonesia is the recruitment of professional and skilled workers to Austria. Last May, Indonesia and Austria signed an MoU on Professional and Skilled Worker Recruitment.
Austria currently faces a workforce shortage, estimated to require around 15,000 non-EU workers by 2027. “I urge the immediate implementation of this cooperation to open Austria’s labor market to skilled workers from Indonesia,” Retno said.
Indonesia appreciates Austria’s support of EUR 40 million (IDR 703.7 billion) for the development of Vocational Training Centers in Medan, Serang, and Makassar. “We both welcome the increased cooperation in higher education between our countries, funded by LPDP, the Indonesia-Austria Scholarship Programme (IASP), and the ASEAN-European Academic University Network program,” she noted.
For educational cooperation, Retno mentioned agreements to renew and expand existing partnerships, incorporating new elements such as teacher training, language classes, internship programs, and dual degree programs.
Tourism cooperation was another topic of discussion. Both ministers agreed to explore sustainable tourism development. Austria expressed interest in attracting skilled workers in tourism and hospitality.
Lastly, Retno emphasized people-to-people contact cooperation. Both ministers welcomed the 8th Indonesia-Austria Interfaith and Intercultural Dialogue (IAID) to be held in Bandung next month. This dialogue will address climate change, women’s issues, and discussions to reduce interfaith disparities.
