Retirement
Should your super be invested in Indonesia?
The Australian government has urged Australian superannuation funds to invest in Indonesia following the signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement (CEPA).
Should your super be invested in Indonesia?
The Australian government has urged Australian superannuation funds to invest in Indonesia following the signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement (CEPA).

According to the agreement, Indonesia is open to Australian business with telecommunications, construction, and transport companies can now be 67 per cent Australian owned, and Prime Minister Scott Morrison has called upon super funds to seize that opportunity.
“The Treasurer today reinforced the opportunity for Australian pension funds and superannuation funds to be looking at the opportunities that exist in Indonesia as they do in many other countries around the world,” Mr Morrison said in a joint statement with Indonesian President Joko Widodo.
“And we see that investment partnership as a key part of how the IA-CEPA will be realised.”
Indonesia is an exciting opportunity. As President Widodo put to Parliament himself, the country will have a GDP of US$10.5 trillion and the world’s third largest middle class by 2050. But despite the liberalisation of its economy, there’s still plenty to worry about, with Western Asset Management noting the country faces “significant and persistent challenges” in a number of areas, including “corruption, GHC emissions, gender imbalances and external food dependency”.

While hotels can now be 100 per cent Australian owned, proposed legal reforms that would see the criminalisation of sex outside of marriage and between same-sex couples, as well as blasphemy and abortions, are unlikely to attract much in the way of tourism.
The country has also seen an increase in Islamic terrorism – something that will be top of the mind of any investor who followed Saudi Aramco’s woes last year – while bureaucratic corruption also remains “endemic” despite the country’s efforts to enforce and streamline regulatory processes, according to Western Asset Management.
These factors make foreign a somewhat shaky prospect, and super funds might be hard pressed to justify investing in Indonesia over other liberalising emerging markets, such as India, which has just streamlined labour codes to boost employment.
But Indonesia also has massive infrastructural needs as it begins to enhance physical connectivity across its 17,000 islands and build an entirely new capital city (Jakarta is actually sinking into the ocean). Australian companies are well placed to meet those needs – particularly superannuation funds, which are increasingly turning to infrastructure to generate returns in a low rate environment.
Indonesia is also making a huge push into renewables, tapping hydropower, biofuel, geothermal, wind and solar to provide 23 per cent of its power by 2025. That’s a great opportunity for super funds – especially with the greater scrutiny that energy investments now face amidst high-profile divestments from companies like BlackRock.

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more