Indonesia — the world’s third largest democracy with the world’s largest Muslim population — is one of Australia’s most important bilateral relationships. We enjoy extensive cooperation including on strategic, economic, security, development and education issues. In 2024, Australia and Indonesia celebrate 75 years of diplomatic relations. Australia’s diplomatic network in Indonesia includes our embassy in Jakarta and consulates-general in Bali, Surabaya and Makassar.

Bilateral relations

Indonesia is a vitally important partner for Australia. The Australia-Indonesia bilateral relationship was elevated to a Comprehensive Strategic Partnership (CSP) in 2018. The CSP coalesces bilateral cooperation around five broad pillars:

• enhanced economic and development partnership
• connecting people
• securing our and the region's shared interests
• maritime cooperation
• contributing to Indo-Pacific security and prosperity.

The relationship is underpinned by regular high-level meetings. These include the Annual Leaders' Meeting; Foreign and Defence Ministers' 2+2 Meeting; Ministerial Council on Law and Security; Economic, Trade and Investment Ministers' Meeting (ETIMM); the Economic Policy Dialogue and the Ministerial Energy Dialogue.

The most recent Annual Leaders' Meeting was held in Australia on 4 July 2023. Prime Minister Anthony Albanese was accompanied by Foreign Minister Penny Wong, Climate Change and Energy Minister Chris Bowen, Education Minister Jason Clare, and Industry and Science Minister Ed Husic. In the Joint Communique, leaders discussed new proposals to increase economic integration and two-way investment, as well as enabling more Australian and Indonesian professionals to work in each country. Additionally, Australia has expanded access to visas for Indonesian business travellers.

Prime Minister Anthony Albanese announced commitments at the ASEAN-Australia Special Summit in Melbourne in March 2024, including:

• New regional technology Landing Pads, including in Jakarta, to bring together startups, research institutions, and tech players to drive digital transformation
• Regional hub locations for investment Deal Teams, including in Jakarta, to help identify pipelines for investment opportunities across Southeast Asia.

The Prime Minister made earlier commitments on 8 September 2023 while in Jakarta for the 3rd Annual ASEAN-Australia Summit and the 18th East Asia Summit, including:

• a bilateral mechanism to advance cooperation on Indonesia's electric vehicle cooperation [Memorandum of Understanding signed in November 2023 by Minister for Industry and Science, Ed Husic and Minister Erick Thohir on behalf of Indonesia’s Coordinating Ministry for Maritime Affairs and Investment].
• the second tranche of funding under the $200 million Climate and Infrastructure Partnership [KINETIK, launched March 2024], including $50 million to derisk private infrastructure projects through the Private Infrastructure Development Group (PIDG), and $100 million to support Indonesia's just energy transition. This is in addition to the $50 million announced at the 2022 Annual Leaders' Meeting to unlock private sector investment through Australian Development Investments (ADI).

The eighth 2+2 Foreign and Defence Ministers' Meeting was held on 9 February 2023. Key outcomes of the 2+2 meeting included announcing our intent to upgrade our Defence Cooperation Arrangement to a treaty-level Defence Cooperation Agreement, enhanced cooperation in trade and investment, and further cooperation to advance Women, Peace and Security initiatives in the region. Ministers also discussed important global and regional issues including Ukraine and Myanmar.

President Prabowo Subianto was inaugurated as Indonesia’s eighth president on 20 October 2024. He visited Australia for the Foreign and Defence Ministers’ Meeting on 9 February 2023 and as a Guest of Government on 19-20 August 2024.

High-level visits

There has been a high tempo of two-way visits by Australian and Indonesian ministers with Indonesia's G20 Presidency in 2022 and as ASEAN Chair in 2023. Recent bilateral visits include:

• Deputy Prime Minister and Minister for Defence Richard Marles visited Magelang in August 2024 and Jakarta in February and October 2024.
• Indonesian Defence Minister and President-elect Prabowo Subianto visited Canberra in August 2024.
• Minister for Home Affairs Tony Burke visited Bali in July 2024.
• Governor-General General David Hurley and Mrs Linda Hurley visited Jakarta in May 2024.
• Assistant Minister to the Prime Minister Patrick Gorman visited Bali in May 2024.
• Minister for Home Affairs Clare O’Neil visited Jakarta in May 2024.
• Indonesian President Joko Widodo visited Melbourne in March 2024, accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, Foreign Affairs Minister Retno Marsudi, Public Works and Housing Minister Basuki Hadimuljono and State Secretary Minister Pratikno.
• Assistant Trade Minister Tim Ayres visited Jakarta in January 2024.

Defence and security

Cooperation between Australia and Indonesia on security matters is underpinned by the Lombok Treaty (2006). Both countries reaffirmed their commitment to strengthening bilateral relations in 2014 by signing a Joint Understanding on the implementation of the Lombok Treaty, which provides an agreed approach to enhancing intelligence cooperation.

Australia's defence relationship with Indonesia is strong. We conduct around 20 exercises a year. Areas of focus include education and training, maritime security, humanitarian assistance, and peacekeeping.

Our current Defence Cooperation Arrangement signed in 2012, was updated in September 2021. On 29 August 2024, Australian and Indonesian Defence Ministers signed a Defence Cooperation Agreement at the Indonesian Military Academy in Magelang, Central Java. This treaty-level Agreement will allow for enhanced practical cooperation and interoperability between our defence forces in areas such as maritime security, counter terrorism, humanitarian and disaster relief, logistics support, education and training, as well as across defence industry. Both Australia and Indonesia are currently in the process of progressing entry into force requirements within our respective legal systems.

Maritime cooperation

Australia and Indonesia share the world's longest maritime boundary and are naturally close maritime partners. Maritime cooperation is one of the five pillars of the Australia-Indonesia CSP and its Plan of Action (2020-2024).

This builds on the Joint Declaration on Maritime Cooperation [PDF 120 KB] signed by Foreign Ministers in February 2017 to drive expansion of cooperation. The focus areas of our cooperation under the Plans include strengthened maritime domain awareness and maritime border protection; combatting illegal, unreported and unregulated fishing; improved information sharing to combat transnational crime; greater regional and coastal interconnectivity; improved reliability and efficiency of shipping in the region; maritime connectivity and the blue economy; maritime safety; and more sustainable management of marine resources, among many more.

Counter-terrorism cooperation

Australian and Indonesian authorities have cooperated closely to detect and deter terrorist attacks in Indonesia since the 2002 Bali bombings. Our counter-terrorism cooperation now involves a wide range of partnerships in law enforcement, legal framework development, criminal justice, counter-terrorism financing, countering violent extremism, defence, transport and border security, intelligence, and the security of chemical, biological, radiological, nuclear and explosive materials.

In October 2022, Australia and Indonesia jointly commemorated the 20th anniversary of the Bali Bombings. A renewal of the Memorandum of Understanding on Counter Terrorism and Violent Extremism was signed in September 2021. The MOU is supported by regular Australia-Indonesia Counter-Terrorism Consultations, last held in Canberra on 14 September 2023.

Marking its 20th anniversary in 2024, the Jakarta Centre for Law Enforcement Cooperation (JCLEC), a joint Australia-Indonesia initiative, has become an important regional centre for law enforcement training. More than 44,000 officials from 94 countries have completed training at JCLEC on addressing transnational crimes including terrorism, human trafficking and cybercrime.

Combatting people smuggling cooperation

Australia and Indonesia work closely together to combat people smuggling and human trafficking, including by co-chairing the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime. We strongly support cooperative measures with Indonesia to improve border integrity and enforcement. We also continue to work with our regional partners to combat people smuggling and human trafficking, by strengthening legal frameworks and boosting the capabilities of criminal justice agencies and civil society organisations.

Cyber cooperation

Australia and Indonesia recognise the important role of an open, secure, stable, accessible and peaceful cyber space in driving economic growth, enhancing national security and fostering international stability.

On 12 December 2023, Australia and Indonesia held Cyber Senior Officials Talks in Canberra where an extension of the Australia-Indonesia bilateral Memorandum of Understanding on Cyber and Emerging Cyber Technology Cooperation was signed.

Multilateral and regional cooperation

Australia and Indonesia work closely on a range of common strategic interests in multilateral and regional fora. We cooperate closely with Indonesia in the UN, Asia-Pacific Economic Cooperation (APEC), G20, the East Asia Summit (EAS), ASEAN Regional Forum, Indian Ocean Rim Association (IORA) and the grouping of Mexico, Indonesia, Republic of Korea, Türkiye and Australia, known as MIKTA. We are collaborating in the development of the Indo-Pacific Economic Framework (IPEF). Further, a Memorandum of Understanding on Trilateral Cooperation with the Pacific was signed in September 2021.

We are also supporting Indonesia's ambition to join the Organisation of Economic Co-operation and Development (OECD). Australia supported Indonesia's priorities as Chair of ASEAN and the East Asia Summit in 2023. In March 2024, we hosted an ASEAN-Australia Special Summit in Melbourne to celebrate 50 years since Australia became ASEAN's first Dialogue Partner.

Trade and investment

Australia enjoys promising levels of trade with Indonesia. Australia is a major supplier of agricultural products (wheat, sugar, cotton, beef, live cattle), minerals (gold, iron ore and concentrates) and energy (coal, crude petroleum), which support Indonesia’s food security, energy security and economic growth.

Indonesia's growing consumer market is also looking to Australia for food and beverages, healthcare, education, tourism and other quality Australian exports. Opportunities for other sectors are emerging as the Indonesian economy continues to grow, transform and become more open.

In 2023, Indonesia was our 13th largest two-way trading partner by value ($26.7 billion) and our 9th largest export market ($15.1 billion). Indonesia was Australia's largest market for live animals (excluding seafood), and our second largest market for wheat and cotton.  Our services trade is also robust – in 2023 the value of services exports rose 81 per cent (predominantly Indonesian studying in Australia), and services imports rose 103 per cent (predominantly Australian tourists visiting Indonesia).

Attracting foreign investment is a priority of the Indonesian government.  Indonesia's economy is the world's 16th largest and grew an estimated 5.0 per cent in 2023 according to the IMF.  Indonesia's favourable macroeconomic trends, demographic fundamentals and economic policy settings contribute to an investment environment that may present opportunities to Australian investors. In 2023, Australian investment in Indonesia totalled $1.27 billion, and Indonesian investment in Australia totalled $2.22 billion.

In September 2023, the Prime Minister launched Invested: Australia’s Southeast Asia Economic Strategy to 2040 (the Moore Report) in Jakarta to unlock opportunities in trade and investment. The Invested: Indonesia to 2040 investment market guide outlines the size of the market opportunity, reforms Indonesia has made to attract investment and opportunities in key Indonesian sectors.

• Invested: Indonesia to 2040 — Opportunities and Pathways for Australian Investors [PDF 2 MB]
• Invested: Indonesia to 2040 — Opportunities and Pathways for Australian Investors [DOCX 6.5 MB]

Australia’s Investment Deal Team in Jakarta, a recommendation of the Moore Report, is working to develop and facilitate deeper Australian investment in Indonesia. The $2 billion Southeast Asia Investment Financing Facility is also supporting investment opportunities in Indonesia aligned with the Moore Report.

The Australia-Indonesia Partnership for Economic Development (PROSPERA) assists Indonesian economic institutions implement policies that contribute to strong, sustainable and inclusive economic growth.

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) creates the framework for closer economic engagement between Australia and Indonesia. IA-CEPA entered into force on 5 July 2020 and opens new markets and opportunities for businesses, primary producers, service providers and investors.

Established under IA-CEPA, Katalis is a government-backed business development program unlocking the potential of economic partnership between Australia and Indonesia. Katalis takes a commercially oriented approach to maximising the benefits of IA-CEPA for Indonesia and Australia through improved market access, increased two-way trade and investment, and inclusive economic growth.

Also as part of IA-CEPA, the Indonesia-Australia Skills Development Exchange (SDE) Pilot gives businesses from Australia and Indonesia the opportunity to send employees to undertake workplace placements for up to twelve months in the other country. The first exchanges under the Pilot commenced in January 2024. The Pilot aims to provide an opportunity for participants to develop their own workplace skills while strengthening cooperation and understanding between Australia and Indonesia. Through building strong people-to people links, the Pilot will equip participants with the cultural competency and global perspective necessary to make the most of the opportunities offered by an increasingly interconnected world.

Other trade agreements Australia has with Indonesia include the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP). AANZFTA has reduced a wide range of tariffs on trade between Australia and Indonesia. RCEP builds on the outcomes of AANZFTA to promote further growth in the region.

Development cooperation

Australia's development partnership with Indonesia (FY2024-25, $353.7 million) is supporting equitable and sustainable economic transformation, climate-resilient communities, and strong institutions. The overarching goal for our development partnership is to promote Indonesia's prosperity, stability and resilience, and strong links between our two countries. We are working together on shared development priorities in line with Indonesia's National Long Term Development Plan 2025-2045 (RPJPN) and vision of achieving high-income country status by 2045 (Visi Indonesia Emas 2045), alongside commitments to the Sustainable Development Goals.

We have a long history of working together, and our development partnership is evolving to keep pace with Indonesia's rapid development and policy ambition. We are responsive, flexible, and able to seize opportunities for collaboration in areas of mutual interest, including building stronger and deeper institutional linkages and advancing gender equality, disability and social inclusion.

The Australia–Indonesia Development Partnership Plan 2024–2028 (DPP) sets out the development priorities Australia shares with Indonesia. It is underpinned by extensive consultations with a broad range of partners, including government, civil society and other development organisations.

Program highlights include:

• Supporting high-quality infrastructure projects through KIAT [$300 million, 2017-2026].
• Providing economic governance advice through PROSPERA [$259 million, 2018-2026].
• Supporting just energy transition through the Climate and Infrastructure Partnership, KINETIK [$200 million, 2022-2027].
• Increasing efficiency and effectiveness of local governance through SKALA [$160 million, 2022-2030].
• Offering study, research and professional development opportunities in Australia through Australia Awards Indonesia [$128 million, 2022-2030].
• Strengthening civil society engagement on gender equality, disability and social inclusion through INKLUSI [$120 million, 2021-2028].
• Supporting knowledge partnerships between Australian and Indonesian organisations through KONESKI [$50 million, 2022-2027].
• Designing a new bilateral health program, to commence in 2025.

Education

Indonesia and Australia enjoy a strong relationship with many initiatives operating across all levels of the education sector. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is opening opportunities for Australian investment in the higher education sector, in support of the Government of Indonesia’s commitment to upskill 57 million Indonesians by 2030. Deakin University, in partnership with Lancaster University, recently opened a campus in Indonesia (Bandung). Western Sydney University (Surabaya) and Monash University (Jakarta) also have campuses in Indonesia.

2023 marked the 70th anniversary of Australian scholarships in Indonesia. More than 200,000 Indonesians in total have studied in Australia, including senior government and business leaders. The Australia Awards Indonesia program is one of the largest scholarships programs in Indonesia, offering around 220 scholarships and short term awards each year.

Indonesia remains the most popular destination for students under the Australian Government’s New Colombo Plan. Since 2014, 113 NCP scholarships and 12,559 NCP mobility grants have been awarded for Indonesia.

Australia has supported education reform in Indonesia for many years through our development cooperation program. The BRIDGE Program (Building Relationships through Intercultural Dialogue and Growing Engagement) uses technology to build links between Australia and Indonesian teachers and students. The project has established 200 school partnerships and has involved 800 Australian and Indonesian teachers.

People connections

People connections are an important component of our relationship with Indonesia. There are longstanding cultural, tourism, education and business connections.

Indonesia is now Australia’s top destination for short-term overseas travel, with around 1.37 million Australians visiting Indonesia in 2023.

Links between schools, exchanges, visits and scholarships provide an important foundation for engagement. Organisations including Asia Education Foundation, Australia-Indonesia Centre, ANU Indonesia Project, Australia-Indonesia Youth Association and student associations play a key role in building these links.

The Australia-Indonesia Institute (AII), established in 1989, has a long history of fostering greater mutual understanding and amplifying Australia's standing in Indonesia. Through its programs and networks, AII contributes to a more broadly based and enduring relationship facilitating increased contact between Australians and Indonesians and projecting positive images of Australia and Indonesia in each other's country.

AII flagship programs include:

• Australia-Indonesia Youth Exchange Program.
• Australia-Indonesia Muslim Exchange Program.
• Australia-Indonesia Institute Indonesian Studies Award.
• Elizabeth O'Neill Journalism Award.
• Australia-Indonesia Senior Editors' Program.