Australia and Indonesia boost ties with focus on defense and economy

NEW DELHI: Australian Prime Minister Anthony Albanese has concluded a pivotal visit to Jakarta, marking a significant step forward in reinforcing Australia-Indonesia relations. The visit, his first overseas trip since re-election, focused on bolstering bilateral cooperation in defense, economic development, and regional security amid rising geopolitical challenges.
Defense Partnership Elevated
At the heart of the diplomatic mission was the strengthening of the Australia-Indonesia Defense Cooperation Agreement (DCA), a landmark treaty-level agreement signed in 2024. This agreement enhances defense interoperability between the Australian Defence Force (ADF) and the Indonesian National Armed Forces (TNI), covering key areas such as maritime security, counter-terrorism, humanitarian assistance, and disaster response.
A major outcome of this cooperation is the launch of the joint military exercise “Keris Woomera,” involving around 2,000 personnel — the largest bilateral military engagement between the two nations to date.
Prime Minister Albanese stressed the need for regional unity and vigilance, especially in light of reports suggesting increasing Russian interest in military infrastructure on Indonesia's Biak Island. "Our defense partnership is more crucial than ever in ensuring a secure and stable Indo-Pacific," said Albanese during a joint press briefing.
Economic Ties and Investment in Clean Technologies
Beyond defense, the talks focused on expanding economic collaboration, particularly in the critical minerals and clean energy sectors. With Indonesia aiming to become a key player in the global electric vehicle (EV) battery market, Australia — a major supplier of lithium and other rare earths — is stepping in to provide raw materials.
Western Australia has already inked agreements with Indonesian counterparts to facilitate lithium exports for EV battery production, aligning with Jakarta’s green industrial ambitions.
Both leaders also reviewed progress under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), reaffirming their commitment to deepen trade ties in agriculture, education, digital economy, and infrastructure.
Navigating a Shifting Regional Landscape
The Albanese-Prabowo summit also addressed the evolving geopolitical dynamics of the Indo-Pacific. With China’s growing influence and renewed U.S. engagement in the region, both countries emphasized the importance of ASEAN centrality and a rules-based international order.
Prime Minister Albanese reiterated Australia’s support for Indonesia’s regional leadership and its role in maintaining peace and stability. “Indonesia is a cornerstone of our regional strategy. Together, we can shape a future based on mutual respect, shared prosperity, and collective security,” he said.
A Milestone Visit
The Jakarta visit is being widely seen as a milestone in the Australia-Indonesia relationship, reflecting a shared vision for a resilient, secure, and economically integrated