Australia, Indonesia Seal Major Security Pact as Regional Powers Jostle for Influence
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Australia and Indonesia wrapped up negotiations on a sweeping security treaty Wednesday, committing the Pacific neighbors to regular consultations and potential joint military responses amid rising tensions between the United States and China.
Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto announced the deal at the Royal Australian Naval Base in Sydney, calling it the most significant defense partnership between the two countries in three decades. The treaty requires both nations to consult when either faces security threats and to consider coordinated action.
“This treaty is a recognition from both our nations that the best way to secure that peace and stability is by acting together,” Albanese said. “It signals a new era in the Australia-Indonesia relationship.”
The announcement marks a diplomatic win for both leaders as they navigate a region where Washington and Beijing are competing for influence. Indonesia, which has nearly 280 million people and maintains a non-aligned foreign policy, becomes a more formal Australian partner at a moment when alliances are shifting.
Prabowo, making his first state visit to Australia despite being previously banned from the country over human rights concerns, framed the pact through the lens of geography and necessity.
“We cannot choose our neighbors, especially countries like us,” Prabowo said. “It is our destiny to be direct neighbors. So let us face our destiny with the best of intentions.”
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What the Treaty Does
The agreement commits Australia and Indonesia to consult at leader and ministerial levels regularly on security matters, according to a statement from Foreign Affairs Minister Penny Wong. The countries will develop cooperation benefiting their own security and the region’s stability.
When either country faces security challenges, the treaty requires consultation and consideration of measures that could be taken individually or jointly, the statement said. Both nations also agreed to promote mutually beneficial security activities in areas they identify together.
“This treaty will commit Australia and Indonesia to consult at a leader and ministerial level on a regular basis on matters of security, to identify and undertake mutually beneficial security activities,” Albanese said.
If either country’s security is threatened, the treaty obligates them “to consult and consider what measures may be taken either individually or jointly to deal with those threats,” he said.
Albanese called it “a watershed moment” and “a major extension of our existing security and defense cooperation.”
The treaty doesn’t automatically trigger military action but creates formal channels for coordination that didn’t exist before. It extends beyond traditional defense to include cooperation on natural disasters and humanitarian crises.
Drawing on History, Building Forward
The new treaty closely follows the security agreement signed by Prime Ministers Paul Keating and President Soeharto on Dec. 18, 1995, according to Wong’s statement. It builds on the 2006 Lombok Treaty, which reaffirmed Indonesia’s territorial integrity and sovereignty, and a 2024 defense cooperation agreement.
“The treaty is predominantly based on the landmark security agreement signed by the Keating and Suharto governments 30 years ago,” Albanese said.
Wong said the treaty “will reflect the close friendship, partnership and deep trust between Australia and Indonesia, under our Comprehensive Strategic Partnership.”
Both countries benefit from each other’s stability, Wong said. “Through this Treaty we will take our cooperation to a new level, for the benefit of both our own security and that of the region.”
From Banned to State Guest
The treaty negotiations represent a turnaround for Prabowo, who was barred from entering Australia and the United States for years after being implicated in human rights violations.
“Prabowo was banned from Australia for a very long time, as well as the US, being implicated into certain human rights issues,” said Professor Sharyn Davies, director of the Monash University Indonesian Engagement Centre, in a Sky News interview after the announcement.
This week marks Prabowo’s second trip to Australia and his first as president in an official state visit. He met with Governor General Sam Mostyn Wednesday morning before the naval base announcement.
“I’m pleased to have been received by the Governor General this morning,” Prabowo said. “We had very good discussions.”
Davies said Prabowo is taking a more internationally focused approach than his predecessor.
“Prabowo is much more of an outward, international-looking president than his predecessor, Jokowi,” she said. “Prabowo is really trying to make his mark globally in a way that we haven’t perhaps seen in recent times.”
At the naval base, Prabowo thanked Australian officials for arranging bagpipes at his arrival, apparently a personal favorite.
“I think your intelligence is very good,” Prabowo said. “You know that I like bagpipes.”
Why This Matters Now
The timing reflects Indonesia’s growing importance as regional powers compete for influence. Indonesia is on track to become the world’s third or fourth largest economy in coming decades and is already the world’s third largest democracy, Davies said.
“It’s particularly important at this geopolitical time with the US and China such superpowers in the region,” Davies said. “It’s really important that we get on well with our neighbors and one way of doing that of course is to have closer economic and in this case also defense ties.”
Indonesia pursues a non-aligned foreign policy, refusing to choose sides between Washington and Beijing.
“Indonesia is a non-aligned country and so what that means is in their words they want to be friends with everybody,” Davies said. “They want to be friends with the US and they want to be friends with China and they’re not taking a particular side.”
That positioning makes Indonesia’s closer relationship with Australia significant. Australia needs to ensure it maintains strong ties as Indonesia navigates between the superpowers, Davies said.
“Australia needs to make sure that it really has this close relationship and I think at this point Albanese welcomed Prabowo very closely,” she said. “I think this actually is a really good time for the Australia-Indonesia partnership.”
Good Neighbors in Times of Crisis
Both leaders emphasized mutual support obligations that come with geographic proximity.
“I believe in the good neighbor policy,” Prabowo said. “Good neighbors are essential. Good neighbors will help each other in times of difficulties.”
Prabowo referenced an Indonesian saying: “When we face an emergency, it is our neighbor that will help us. Maybe our relatives will remain far away. But our neighbors are the closest. And only good neighbors will help each other.”
The Indonesian president said the treaty commits both countries to “close cooperation in a defense and security field” and reaffirms their determination “to enhance and guarantee the security of both our countries.”
Albanese said the agreement shows “the relationship is as strong as it has ever been.”
“That’s a great thing for our region and for the people of both Australia and Indonesia,” he said.
Challenges Ahead
Despite the diplomatic progress, tensions remain. Indonesia continues facing human rights concerns, and the countries must navigate disagreements over critical minerals and food security, Davies said.
“Indonesia still has human rights issues that many Australians are rightly very concerned with,” she said. “This is where Australia can really step up in the relationship.”
Australia must move beyond transactional dealings, Davies said.
“We have to make sure that our relationship is not transactional, that we actually have a deeper engagement with Indonesia than just on tariffs and trade and defense,” she said.
A particular concern is Australia’s declining Indonesian language capability. A Senate inquiry chaired by Tim Watts is examining what Davies called “a real paucity of Indonesia sovereign knowledge and capability in Australia.”
“If we keep going as we are, Australia’s on track to have no one that speaks Indonesian,” Davies said. “If we have a country to our north and we don’t have anyone in Australia that can speak their language, that puts us really on the back foot.”
Without language skills and cultural understanding, Australia risks being unprepared for inevitable disagreements, she said.
“When we have those highs and lows and those debates with Indonesia as any neighbors will, we have to make sure that Australia has that sovereign knowledge, sovereign capability, particularly through language learning amongst Australians,” Davies said.
What Happens Next
Albanese said he plans to travel to Indonesia in January at Prabowo’s invitation to formally sign the treaty after both countries complete domestic approval processes.
“I hope to travel to Indonesia in January next year at the President’s invitation to formally sign the new treaty after it has gone through our domestic processes,” he said.
Wong said leaders “look forward to signing the Treaty in the new year” following their respective approval processes.
The treaty will “set out in formal terms our common interest in the peace and security of our region, and our commitment to work together to support the security of our region,” Wong said.
Albanese thanked naval personnel who organized the announcement, including the Chief of Navy and the captain of HMAS Canberra.
For now, both countries are betting that closer security cooperation serves their interests in a region where traditional alliances are being tested and new partnerships are forming. Whether the treaty can weather future political changes remains to be seen, but Wednesday’s announcement signals both nations view their relationship as critical to regional stability
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