Building on the Jakarta Treaty, Australia and Indonesia deepen cooperation
The Australia-Indonesia Foreign and Defence Ministers’ Meeting in Melbourne on 26 August turned both countries’ expanding treaty architecture into practical cooperation for building shared resilience. The meeting brought together Australian and Indonesian foreign ministers Penny Wong and Sugiono and defence ministers Richard Marles and Sjafrie Sjamsoeddin to discuss a wide array of priorities. The economic domain was also an important topic, particularly after Sugiono’s and Sjamsoeddin’s meeting with their Chinese counterparts earlier this month.
Last year’s iteration of the meeting covered defence exercises, military education, maritime cooperation, cyber and technology, as well as partnership in conflict-prevention, economic security, disaster-risk reduction and critical industries such as battery manufacturing. This year’s agenda looks similarly varied, which makes it worth asking where successful cooperation has been achieved and where both countries should concentrate their efforts next. Given the partnership’s already packed agenda, the next phase needs to prioritise knowledge retention and interoperability over adding more issue on the table.
The Melbourne meeting was the first major ministerial engagement since the Treaty of Common Security was signed in Jakarta in February. While both sides are still awaiting the treaty’s ratification, the meeting advanced discussions on the Implementation Arrangement. Technical matters, including travel and visa arrangements for military personnel participating in joint exercises, appear to be progressing. More substantive issues remain under negotiation and are expected to be finalised later this year.
Since the last meeting, both countries have deepened defence cooperation, including engaging in various joint training exercises. This year alone, Indonesian Navy brought its Martadinata-class frigate to Exercise Kakadu in April, and four Indonesian T-50i Golden Eagle combat aircraft deployed to northern Australia for Exercise Pitch Black. In early August, both countries’ navies completed joint drills as part of Exercise Cassowary. Both militaries are preparing for major scenario exercise Keris Woomera. The exercise, to be held in Indonesia later this year, will include a cyber component.
These defence exercises have generated important lessons on maritime awareness, logistical readiness, crisis recovery and communications. It’s important for those lessons to be retained. Earlier this year, Marles announced that an Indonesian colonel would be appointed as deputy commander of the Australian Army’s 1st Brigade in Darwin from 2027. This is a step towards turning these exercises into a standing institutional link.
Developing’s Indonesia training facilities on Morotai Island is another way to build cooperation. Defence plans to send a survey team to assess the island’s World War II-era training facility as a potential site for Australian Defence Force training and joint activities. Morotai’s location would help to make training more reciprocal and sharpen both countries’ awareness of the geography between them.
Facilities on Morotai would support Australia’s northern approaches and strengthen Canberra’s ability to support partners beyond Indonesia, including Timor-Leste, the Philippines, Japan and Papua New Guinea.
For Indonesia, hosting an international training facility in Morotai would increase its capacity to lead practical regional cooperation, including through ASEAN-plus mechanism. However, eastern Indonesia’s infrastructure lags comparatively with Java Island where Keris Woomera took place, which means Australia would need to invest to bring Morotai’s facilities up to standard.
Practical cooperation could also build economic resilience. At a meeting between Chinese and Indonesian foreign and defence ministers earlier this month, China offered to help expand Indonesia’s defence industry in exchange for increased joint military exercises. To help address this, Australia can build longer-term engagement outside of defence to deepen economic and disaster resilience, both of which would contribute to comprehensive security cooperation. This can be done through fostering two-way investment channels and humanitarian support.
President Prabowo Subianto has encouraged Australia to invest in Indonesia’s sovereign wealth fund agency, Danantara. At the same time, he has encouraged Indonesian companies to invest in Australian critical minerals to expand Indonesia’s role in the global electronic-vehicle supply-chain. In line with Indonesia’s aim to strengthen food security, Danantara will pay A$3.6 billion to acquire a 25 percent stake in Australian meat processing company JBS, with plans for further expansion.
On disaster preparedness, Australia has long partnered with Indonesia through the Siap Siaga disaster-risk management program, strengthening Jakarta’s capacity to prepare for and respond to disasters. This cooperation has entered a new phase that includes support for resilience infrastructure. Canberra’s contribution in this sector extends beyond statements on solidarity. However, Beijing’s visible offer of assistance following a 15 August magnitude 7.7 earthquake in Flores may shape Indonesian public perception.
Although China remains Indonesia’s largest trading partner, Australia’s role as Indonesia’s most tangible security partner is reinforced by cooperation in non-traditional sectors. Australia remains a key partner with similar interests, preferences and priorities in securing the region. As Wong framed it, the relationship being built from the Jakarta Treaty is critical for ‘future generations of Indonesians and Australians.’
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