Australia and Indonesia have signed a landmark security treaty, a move Prime Minister Anthony Albanese described as taking defence cooperation to a “new level.” The treaty, inked in Jakarta on , reflects a deepening relationship between the two nations, though its practical implications remain somewhat undefined.
The agreement, formally titled the Australia–Indonesia Treaty on Common Security, comes against a backdrop of increasing geopolitical competition in the Indo-Pacific region and a shifting security landscape. While the treaty doesn’t outline specific commitments in the event of a crisis, it pledges both countries to “consider measures” – individually or jointly – in response to “adverse challenges.”
Albanese has repeatedly emphasized the importance of the relationship with Indonesia, stating that “no country is more important to Australia.” This sentiment echoes the close ties fostered during the Keating-Suharto era in the mid-1990s, a period Albanese appears keen to emulate. However, experts caution against drawing too direct a parallel, noting the vastly different geopolitical context and the complexities of modern Indonesian foreign policy.
The treaty builds upon existing agreements, including the Lombok Treaty of 2006 and the Defence Co-operation Agreement of 2024. Some observers in Indonesia suggest the impetus for a formal “treaty” stemmed more from Australian desires for a stronger symbolic gesture than a fundamental shift in the bilateral security relationship. Nevertheless, the signing represents a significant diplomatic achievement for Albanese, securing engagement with President Prabowo Subianto.
Beyond the security realm, the two countries have also agreed to strengthen economic ties through a Memorandum of Understanding between the Australian Government and Indonesia’s sovereign wealth fund, Danantara. This aims to increase cooperation and identify opportunities for two-way investment, bolstering economic security and resilience in both nations. Australia is also supporting the development of joint defence training facilities in Indonesia and will establish an embedded position for a senior Indonesian military officer within the Australian Defence Force, alongside expanding military education exchange programs for junior leaders.
The historical relationship between Australia and Indonesia has been marked by periods of both cooperation and tension. Early Australian support for Indonesia’s independence following World War II, exemplified by the boycott of Dutch ships by Australian wharfies, fostered goodwill. However, the decades that followed saw periods of mistrust, notably during the Cold War when Prime Minister Robert Menzies’ government raised concerns about Indonesian intentions, leading to the acquisition of F-111 bombers. The tumultuous mid-1960s, with the CIA and British intelligence involvement in the aftermath of Indonesia’s 1965 coup, further complicated relations.
More recently, tensions have flared over issues such as East Timor’s independence and allegations of mistreatment of Indonesian fishermen in Australian waters. Despite these challenges, both countries have consistently recognized the importance of maintaining a stable and productive relationship.
While the treaty has been welcomed by both governments, some analysts point to underlying complexities. Indonesia’s economic trajectory is rapidly changing, with projections indicating it could become a top-five global economy within the next 15 years. This growing economic power is accompanied by a more assertive foreign policy, as evidenced by Prabowo’s efforts to diversify Indonesia’s partnerships, including cultivating ties with both Russia and China.
Prabowo’s recent engagement with the United States, including his participation in Donald Trump’s Board of Peace initiative, has also drawn scrutiny, particularly from Islamist groups within Indonesia. This highlights the delicate balancing act Prabowo undertakes in navigating Indonesia’s foreign relations.
The treaty’s effectiveness will ultimately depend on its implementation and the ability of both countries to navigate potential challenges. Susannah Patton, a South-East Asia expert at the Lowy Institute, notes the treaty’s “brittle foundation” on the Indonesian side, stemming from its top-down nature and limited bureaucratic buy-in. She suggests the treaty’s true value may only become apparent in the event of a regional crisis, such as a conflict over Taiwan or in the South China Sea.
The signing of the treaty also occurs amidst ongoing security concerns in Papua, where clashes between the Indonesian military and separatist groups continue. Recent incidents, including the killing of an Indonesian soldier and the deaths of two pilots, underscore the fragility of the security situation in the region and raise questions about potential spillover effects into neighboring Papua New Guinea, with which Australia recently signed its own mutual defence pact.
Albanese has sought to downplay these concerns, emphasizing respect for the sovereignty of both Indonesia and Papua New Guinea. However, the potential for regional instability remains a significant factor in the evolving security dynamics of the Indo-Pacific.
The Australia-Indonesia Treaty on Common Security represents a significant step in strengthening bilateral ties. Whether it will translate into a more robust and reliable security partnership remains to be seen, but it signals a clear commitment from both countries to deepen their cooperation in a region facing increasing uncertainty.
