The Australian Foreign Minister, Penny Wong, met with her Indonesian counterpart, Sugiono, in Canberra last month to strengthen bilateral ties between the two nations. This visit comes as Indonesia's relationship with Australia is increasingly important for regional stability, given Indonesia's pivotal role in Southeast Asia and Australia's commitment to its northern neighbor.
"In an uncertain region, where great powers are competing for influence, our partnership remains essential," said Australian Ambassador to Indonesia, Justin O'Brien. "We share a common vision for a free and open Indo-Pacific, where every nation has the freedom to choose its own path."
Indonesia is set to play a crucial role in regional security as it prepares to host the Association of Southeast Asian Nations (ASEAN) Summit later this year. The summit will bring together leaders from 10 ASEAN countries to discuss regional security issues and strengthen economic ties.
Historical background on Indonesia-Australia relations dates back to the Cold War era, when both nations were allies in their opposition to communist expansion in Southeast Asia. Since then, the relationship has evolved into a strong strategic partnership, with cooperation in areas such as defense, trade, and climate change.
Indonesia and Australia have also strengthened their ties through regular high-level visits. In 2020, Indonesian President Joko Widodo visited Australia for the first time, meeting with Prime Minister Scott Morrison to discuss bilateral issues and regional security concerns.
Key stakeholders in Indonesia-Australia relations include the governments of Indonesia and Australia, as well as regional organizations such as ASEAN. Indonesia's strategic interests are shaped by its desire to balance its relationships with major powers in Asia, while Australia seeks to maintain stability in the region through its engagement with Southeast Asian nations.
Data on Indonesia-Australia trade shows the growing importance of their relationship. In 2020-21, bilateral trade reached AUD 22 billion, up from AUD 18 billion in 2019-20. The two countries have also strengthened cooperation in areas such as defense and security, including through joint military exercises and counter-terrorism training.
Recent developments in Indonesia-Australia relations include the signing of a comprehensive strategic partnership agreement in 2022, which commits both nations to strengthening their ties in areas such as trade, investment, and regional security. The agreement also includes provisions for cooperation on issues such as climate change and disaster management.
In an interview with Foreign Policy Watchdog, Dr. Mahatta Prasetyo, a senior research fellow at the Indonesian Institute of Defense and Security (Lemi), said: "The Indonesia-Australia relationship is crucial for regional stability. We need to strengthen our ties with Australia to ensure our security and prosperity in Southeast Asia."
Dr. Prasetyo's comments are echoed by Australian think tank, the Lowy Institute, which has called for increased cooperation between Indonesia and Australia on regional security issues. "Indonesia and Australia have a critical role to play in maintaining stability in Southeast Asia," said Dr. Peter Cai, a senior analyst at the Lowy Institute.
Looking ahead, it is likely that Indonesia-Australia relations will continue to be shaped by regional security concerns. Indonesia's hosting of the ASEAN Summit later this year presents an opportunity for Australia to strengthen its ties with the region and demonstrate its commitment to regional stability.
In the next six months, we can expect increased cooperation between Indonesia and Australia on regional security issues, including counter-terrorism and maritime security. In the longer term, Indonesia-Australia relations are likely to be shaped by Indonesia's increasingly prominent role in regional organizations such as ASEAN.
As the Indo-Pacific region continues to evolve, the importance of strong bilateral relationships like that between Indonesia and Australia cannot be overstated. By strengthening their ties, both nations can play a more significant role in maintaining stability and promoting prosperity in Southeast Asia.