Australia and Indonesia Enhance Economic and Defence Ties

Indonesian Defence Minister Prabowo Subianto and Australian Prime Minister Anthony Albanese in Jakarta on 29 August 2023. They agreed to discussions aimed at increasing economic partnership and strengthening defence collaboration. The cozy meet-and-greet took place in the prime minister’s hotel. It opened the door for more serious negotiating on a range of other concerns impacting both countries.

Prabowo underscored Indonesia’s desire for Australia to boost its involvement in Indonesian economic projects. He remarked that the two countries are “destined to be neighbours,” underscoring the need for building a strong bilateral partnership. He noted that “good neighbours are the ones who will help us in rough times,” underlining the mutual benefits of close cooperation.

For his part, Albanese re-stated Prabowo’s optimism, cautioning that Australia is in danger of missing the economic opportunity that is currently taking place in Indonesia. He praised the speed of Indonesia’s economic ascent over the last few decades, saying it was important to Australia’s own economic interests. The unprecedented scale of the conversations between the two leaders came on the heels of last year’s signing of the AUKUS major defence pact.

Expanding Defence Cooperation

The communique issuing from the first Australia–Indonesia special strategic partners’ dialogue between Prabowo and Albanese didn’t mention anything else. Prabowo affirmed Indonesia’s commitment to ratifying the agreement, asserting that his nation would continue to “discuss the possibilities to improve cooperation in the defence sector.”

Albanese characterized this security agreement as “the most significant step in the Australia and Indonesia security partnership for three decades.” He underscored the need to improve bilateral maritime cooperation as a core priority, committing $15 million in support of that objective.

“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

Both leaders were clear that much more is needed in terms of engagement from all sectors. They stressed the importance of government, business and civil society joining efforts to convert their partnership’s potential into tangible outcomes.

Economic Engagement and Future Prospects

As the first round of discussions wrapped up, Albanese asserted that further developing trade relations with Indonesia is critical for the nation of Australia. He remarked, “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.” This statement conveys the need for proactive measures in order to make the most of Indonesia’s strong economic growth.

Prabowo’s engagement further invites Australia to participate more deeply in Indonesia’s economy. This invitation is reflective of his appetite to get creative and open new doors for partnership. In our discussion he painted a compelling picture of how these ties could be strengthened. His vision extends beyond the military, taking in ambitious economic outreach efforts.

“To convert extraordinary potential into concrete progress, then all of us — government, business, civil society — need to demonstrate greater engagement and ambition.” – Anthony Albanese

Alban ese was personally engaged on the economic cooperation front. MDI Alongside domestic reform, he championed Indonesia’s entry into the Organisation for Economic Co-operation and Development (OECD), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP), reflecting an earnest desire to bind Indonesia ever-tighter into the kind of global economy that makes many sceptical.

The Importance of Bilateral Relations

Both leaders depicted their meeting as a watershed moment in Australia-Indonesia relations. Albanese underscored that “no relationship is more important to Australia than this one,” emphasizing the strategic significance of their partnership amid regional challenges.

As both countries navigate complex geopolitical dynamics, such as Russia’s influence in the region, Albanese reassured that Australia’s stance is focused on fostering positive relationships with its immediate neighbours.

“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

Prabowo reflected on the importance of maintaining strong relations, stating, “Family may be far away, but neighbours are always there for us. Therefore, I am determined to maintain the best relationship with our neighbour.”

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