R&D’s triple imperative on Asia capability

Australia’s R&D planning needs to boost our Asia capability.

Australia is falling behind likeminded nations such as the UK, the US, and even Canada in trade and investment with our larger immediate neighbours. This underperformance is costly for human and strategic reasons, and because nations such as Indonesia are registering strong economic growth, with a forecast compound average growth rate of 4 per cent to 2040.[1]

Our research report on Australia’s China Knowledge capability[2] shows Australia’s knowledge partnership with China has powered ahead on some fronts, but our ability to understand China on our own terms (and theirs) has been declining for at least ten years – just when we need it most.

This is a general phenomenon, across Asia, with alarming gaps in Australia’s ability to engage Indonesia, and glaring gaps in our ability to understand India.[3]

Wayfinding

We need to understand our region so that we can find our way in it.

Australia’s historic strength in Indonesia knowledge provides a basis for stronger positioning in the Southeast Asian region.[4]  Longstanding research collaborations between Australian and Indonesian social and culture experts have developed into deep trusting relationships.[5] As Australia seeks to deepen its engagement with Indonesia, and as we collectively confront emerging regional problems,  these existing R&D relationships can lead to wider productive partnerships.

Another example, the ANU’s “China update” is a successful initiative attracting top economics researchers from Australia and China. This long-term knowledge exchange, has put Australia in the top tier of international scholarship in the field, attracting some of the best people from the US and Europe to events in Canberra. The collaboration has a winning formula: long stints of leadership from national figures in Australia, sustaining collaboration with the PRC on a mutual interest. The challenge now is to begin this kind of long-range, national-interest work in other areas of R&D in the humanities and social sciences.

Curiosity-driven research is the bedrock of universities’ knowledge production but there are limited investments in strategic capability through premier schemes aligned to Australia’s science and research priorities.

Economic opportunity

Australian’s understanding of Asia is also an important facilitator for an R&D system that delivers commercial results. If Australian businesses understand Asia’s large and growing middle classes, they will be better placed to see the opportunities and to develop a business culture of ambition and achievement.

Since 2022, Australia’s Prime Ministers and other ministers have visited Indonesia and signed MoUs, hoping to synergise energy transitions. Yet Australia’s knowledge of Indonesia is concentrated, for historical reasons, in the security and development sectors, and is very thin in industry sectors. Australia’s strengths in society and culture (knowledge of Indonesian society, culture and the state) could be leveraged to establish and frame multidisciplinary knowledge partnerships in energy transition.”[6]  Our Indonesianists, linguists, cultural experts and anthropologists (for example), embedded in multidisciplinary teams, can provide a nuanced understanding of operating context.  Australia’s trade delegations, spear-headed by Australian government leaders, for example, would benefit from the expertise of Australia’s foremost social and cultural researchers.

Unexpected insights

Moderate, majority Indonesian Islamic civil-society (“Muhammadiyah”) leaders have high trust and regard for Australian institutions. Muhammadiyah interest in Australia is evident in increasing investment in Australian real estate and especially secondary and tertiary education.

This surprising insight comes first to the humanities who understand the Indonesian culture, intimately. What might this high level of regard and trust portend? A mature R&D system could bring Australia’s Indonesianists into conversation with Australian financial services (globally competitive, locally headquartered) to help establish a context for partnership and collaboration with Muhammadiyah organisations for the management of a very substantial pool of retirement savings that is currently underserviced.

Australia has a comparative advantage for large and growing trade with Indonesia in professional services. Here, Australia’s Indonesia researchers see opportunities that others miss. This is one such example.

An impactful R&D system would incentivise long term collaboration between the Australian researchers who know Indonesia best, and Australian industry representatives with the motivation to collaborate with Indonesia, on the energy transition, but also in services.

[1] Commonwealth of Australia (2023), Invested – Australia’s South-East Asia Economic Strategy.

[2] Australian Academy of the Humanities (2023), Australias-China-Knowledge-Capability-report-1.pdf

[3] Asian Studies Association of Australia (2023) Australia’s Asia Education Imperative

[4] ACOLA (2024) report Mapping Australia’s Indonesia Research Capability, p. 40.

[5] ACOLA (2024), p. 40.

[6] ACOLA (2024) report Mapping Australia’s Indonesia Research Capability, p.30.

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