Australia and Indonesia today have a closer relationship than ever, following the signing of a historic bilateral security treaty. Australian Prime Minister Anthony Albanese is right to call this agreement a “watershed moment.” In Indonesian President Prabowo Subianto’s visit to Sydney in June, leaders signed a historic defence cooperation agreement. This pact is Indonesia’s first bilateral security pact with any country. The treaty provides a flexible framework for the two countries to increase their cooperation on security matters. Mostly, it intends to exert ballast in the complex and frustratingly dynamic Indo-Pacific region.
The signing of this treaty was described as a major breakthrough in Australia and Indonesia’s ongoing bilateral relationship. Together, this partnership has experienced a rollercoaster ride of challenges and successes throughout these years. The deal extends a Defence Cooperation Agreement signed last year, suggesting an intention to continue deepening bilateral relations.
Strengthening Regional Security
This new treaty provides for Australia and Indonesia to consult regularly, at leaders’ and ministers’ levels, about security matters. This collaboration is designed to address potential threats faced by each country, allowing them to consider “what measures may be taken either individually or jointly” to respond effectively. By promoting these trilateral conversations, both countries seek to strengthen their respective security approaches to a region increasingly defined by hostility.
Speaking at the signing ceremony, Prime Minister Albanese made clear the historic significance of the treaty laying the basis for peace and stability. He stated, “Australia’s relationship with Indonesia is based on friendship, trust, mutual respect and a shared commitment to peace and stability in our region. This treaty is a recognition from both our nations that the best way to secure that peace and stability is by acting together.”
Indonesia’s entry into BRICS earlier this year, alongside notable global powers such as Brazil, Russia, India, China, and South Africa, further underscores its growing influence on the world stage. Prabowo Subianto’s attendance at China’s largest military parade earlier this year alongside leaders like President Xi and President Putin reflects Indonesia’s active engagement in international security dialogues.
A Good Neighbour Policy
In his address after the treaty signing, President Prabowo portrayed the agreement as contributing to a “good neighbour policy.” Building more positive relationships with our partners, our competitors, our adversaries is critical, I think, to all of our security.
“Good neighbours are essential. Good neighbours will help each other in times of difficulties.” – Prabowo Subianto
Prabowo further elaborated on the significance of close relationships between neighboring countries, stating, “When we face an emergency, it is our neighbour that will help us. Maybe our relatives will remain far away, but our neighbours are the closest to us and only good neighbours will help us.” It is this sentiment that points to the logic of deepening security cooperation between Australia and Indonesia.
A Historical Context
The treaty comes against a backdrop of past agreements between Australia and Indonesia, including a 1995 pact signed by then-prime minister Paul Keating and president Suharto. That agreement was soon cast aside amidst the Timor crisis, ushering in a decade of strained relations.
This new treaty is a profound promise to move past historical wounds. Collectively, we are meeting and making remarkable progress building this new partnership, overcoming the adversarial history. Albanese pointed out that the agreement reflects deepening recognition in both countries that closer cooperation is essential to maintaining peace and security across the region.
Australia’s relationship with its largest regional partner, Indonesia, has been notoriously ‘patchy’ due to a series of diplomatic hurdles. This new security treaty is an important signal of a re-commitment to working together given new regional realities and opportunities.

