Strengthening Ties: Australia and Indonesia Forge New Economic and Defence Cooperation

Indonesia has moved a step further in strengthening bilateral relations. He held informal talks with Australian PM Anthony Albanese with a view to deepening economic and security cooperation between the two countries. The meeting took place at Albanese’s hotel ahead of formal talks, where both leaders expressed a commitment to enhancing ties between their nations. Prabowo emphasized the importance of Australia as a partner, stating that he had “invited Australia to participate more in our economy.”

Prabowo’s visit comes at a time when both countries are looking to solidify their partnership, especially in light of Indonesia’s rising economic prominence in Southeast Asia. Their leaders understood both their geographical nearness and the need to always uplift each other. He reminded that true, good neighbors help during difficult times.

Focus on Economic Engagement

Throughout the meeting, Albanese lauded Indonesia’s remarkable economic advancement in recent decades. He cautioned that if Australia doesn’t build the right connections and develop smart approaches to respond to this growth, it will lose the benefits. He called on Australian firms to show more ambition and follow-through in their approach to the growing Southeast Asian market.

“For Australia, the deepening of our trade with Indonesia and the strengthening of investment in Indonesia … is natural and vital but it is not inevitable,” – Anthony Albanese

The Albanese government is modestly but significantly doing its part to increase Australia’s economic engagement with Southeast Asia. The aim is to leverage Indonesia’s expanding economy and ensure that Australian businesses do not fall behind in capitalizing on the region’s potential.

Beyond the economic talk, both leaders have noted Indonesia’s desire for deeper international integration. Albanese is a staunch supporter of Indonesia’s entry into the Organisation for Economic Co-operation and Development (OECD). Of course, he supports Indonesia’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Agreement (CP-TPP).

Defence and Security Cooperation

Prabowo and Albanese had the chance to significantly explore the areas of defence and security cooperation. This debate became even more important after Japan and Australia signed a historic joint security agreement last year. Prabowo reiterated his commitment to exploring ways to enhance collaboration in the defence sector, stating he would continue to “discuss the possibilities to improve cooperation in the defence sector.”

Both leaders recognized the growing strategic importance of their partnership. To complement this, Australia has pledged an additional $15 million to strengthen maritime cooperation between the two countries. This commitment underscores their mutual security priorities in an increasingly unstable geopolitical landscape.

“I want us to aim higher, go further and work even more closely together — and I see President Prabowo as a leader with the vision and determination to make that happen,” – Anthony Albanese

The meetings touched on deeper worries about current regional security dynamics. In response, Prabowo avoided answering questions about Australia’s foreknowledge of Russia’s potential military deployment to Indonesia’s Papua province. At the same time, Albanese strongly pushed back against any suggestions that Indonesia would grant Russia basing rights.

“Russia, of course, will try to increase its influence,” – Anthony Albanese

Albanese made it clear that Australia’s role must be evident even when faced with these geopolitical tests. He acknowledged that keeping solid relationships with your next door neighbours is very important, but it’s most important to act in Australia’s national interest.

Future Prospects

Both leaders sounded hopeful about the future of bilateral relations. Prabowo noted that “good neighbours are the ones who will help us in rough times,” reflecting a shared commitment to supporting each other through challenges. He echoed this idea by saying, “When family is far away, neighbours are closer than ever. That is why I have worked so hard to foster the most amicable relationship with our northern neighbour.

Weaving it all together Overall, the meetings between Albanese and Prabowo represent a serious commitment on both sides to continue deepening ties between Australia and Indonesia. And the two countries seem eager to work together on new economic opportunities. Further, they will team up on defense advocacy campaigns to remain robust as regional threats change over time.

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