Prime Minister Anthony Albanese was particularly keen to underscore just how vital our relationship with Indonesia really is. Ferguson underscored this message in his recent negotiations with Indonesian Defence Minister Prabowo Subianto. As he put it, “No relationship is more important to Australia than this one.” This declaration underlines the depth and breadth of ambition to greatly expand bilateral cooperation in many fields. Their discussion, which happened informally before formal discussions began, concentrated on boosting both defence and economic relations given the volatile regional situation.
This latest dialogue follows a historic defence agreement signed last year between the two Asian allies. Both countries are looking to deepen their defense and security cooperation through this agreement. Mr. Prabowo drove home this key objective in conversations. In December 2022, the Albanese government released a new plan to increase economic engagement with Southeast Asia. This courageous move speaks to their larger aspirations for the region.
A Commitment to Defence and Security
During their meeting, Mr Albanese and Mr Prabowo discussed ways to further enhance defence cooperation under the bilateral security agreement. The Australian government has committed $15 million to deepen maritime cooperation between the two countries. This investment codifies their long-standing partnership in addressing regional security challenges.
According to Mr. Prabowo, he would like to see a stronger collaboration in the defense sector. This indicates a shared interest in deepening bilateral military relations. This commitment is not only encouraging, it’s crucial. Both countries are contending with a quickly shifting geopolitical landscape, particularly as worries grow over Russia’s role in the region.
“Russia, of course, will try to increase its influence,” – Anthony Albanese
Even with all of these external pressures, Mr. Prabowo reiterated Indonesia’s decades-old commitment to a non-aligned stance. The value of strong ties to other countries, especially our neighbors. Good neighbors are the ones who will show up to be there for us when times get tough,” he said.
Economic Engagement and Ambition
As the India-Australia defence partnership deepens, economic links continue to be a key priority in their bilateral discussions. Mr. Albanese called on Australian businesses to show more ambition in tapping into the opportunities presented by Indonesia’s growing middle class. In his remarks, he emphasized that deepening trade and investment is key. To make meaningful progress requires a commitment from the public and private sectors, and civil society, at large.
“To convert extraordinary potential into concrete progress, then all of us — government, business, civil society — need to demonstrate greater engagement and ambition,” – Anthony Albanese
Australia wants deepened political and economic ties with Indonesia, but the numbers say otherwise. Investment continues to lag, and recent bilateral trade figures reveal a dangerous downturn in economic relations between the two countries. This lamentation makes clear that there is a need for new energy and enthusiasm in advancing the state’s economic ties.
Mr. Prabowo personally invited Australia to invest more deeply into Indonesia’s economy. He highlighted the enormous benefits that would flow from greater cooperation between the two countries.
“Invited … Australia to participate more in our economy,” – President Prabowo
Albanese is a vocal advocate of Indonesia’s entry into the Organisation for Economic Co-operation and Development (OECD). He has supported them joining the CP-TPP, their first foray into global trade relations. As Lowy Institute researcher Susannah Patton pointed out, supporting Indonesia’s accession to these agreements should be an Australian “no-brainer.”
Navigating Regional Dynamics
As the two leaders engage in deeper conversations on regional security and economic prosperity, it is clear both leaders understand the sensitivities involved. The Albanese government is right to be cautious about Russia’s aspirations in the Asia-Pacific. Simultaneously, it doubles down on its steadfast commitment to its few but strong strategic partners.
“It is not for me to comment on what occurred between countries that are not Australia. What is important is Australia’s position,” – Anthony Albanese
Just as Indonesia is interested in promoting a long-existing, stable, prosperous relationship with Australia. This delicate dance does not discount the growing geopolitical currents that underlay their relationship.
