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Indonesia Development Context and Political Economy Analysis

Analysis Political Economy Analysis Study

Department of Foreign Affairs and Trade - Australia

Agulhas prepared a development context and political economy analysis of Indonesia for Australia’s Department of Foreign Affairs and Trade (DFAT), to inform the development of a new Australia-Indonesia Development Partnership Plan. The study synthesised a large body of analysis assembled by DFAT, its development programmes and partners, together with a review of external literature. Its preparation included consultations across the DFAT mission, implementing partners and over 100 Indonesian civil society representatives, through thematic roundtables and interviews. It built upon an early political economy analysis that Agulhas undertook in 2020.

The study explored Indonesia’s political and economy context, looking at the response to COVID-19, public services, social protection, clean energy transition, fiscal decentralisation, and women’s economic empowerment. It drew lessons for Australia’s development cooperation with Indonesia.

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