Colin Barnett is making his first trip to Indonesia as West Australian premier to set a new direction for the state, which he says can no longer overlook its nearest neighbour.
Western Australia's resources-led economy has seen it develop special relationships with Japan, Korea and China.
"Our mining export industry is worth over $100 billion," he told AAP in Jakarta on Monday.
"I don't believe we will see that sort of growth into the future, so while our mining and petroleum production continues to grow it will be at a slower or more steady rate.
"The time's right for Western Australia to try and diversify."
The future will be more focused on Indonesia and the Indian Ocean rim countries.
Specifically, trade with Indonesia must go beyond wheat, iron ore, cattle and beef, and into education and tourism.
"For Australia, Indonesia has been the elephant in the room to some extent and it's one hell of a big elephant," he said.
"Australia needs to work harder on the relationship with Indonesia than perhaps Indonesia does with Australia, and that's a realisation I've come to.
"I've spent an enormous amount of time over my political career in Japan and China and not so much in Indonesia.
"That's the new direction I'm setting the West Australian government on."
Last year, Mr Barnett's government was considering integrating its Jakarta trade office with the federal government body.
It instead decided to expand, hiring three new staff to turn its performance around.
Mr Barnett says WA is now "here for the long haul".
The three-day schedule includes meetings with Indonesian government officials, and roundtables with business leaders in energy, education, agri-food and travel.
RESHAPING THE WA-INDONESIA RELATIONSHIP:
- Colin Barnett would like to see more Indonesian students choose Western Australia for university
- While Bali is "Perth's holiday destination" (there are about 65 flights from Perth to Denpasar weekly) he would like to see Australians go beyond Bali, and more tourism both ways
- The premier supports Indonesia's efforts to import more fruit into Australia, provided it meets biosecurity requirements
- WA would be happy to help indonesia develop its domestic cattle industry as a self-sufficiency goal. "We don't in any way feel threatened by that, the world market for beef is increasing very strongly".
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