Australia Says Indonesia Very Important, But Is It The Same For Indonesia?

Australia's Prime Minister said Indonesia is the most important country to Australia. They signed a new security agreement. However, it is not clear if Indonesia feels the same way about Australia. This news looks at the relationship.
By Newsroom | International Relations, Asia |

Assessing the Claims of Unprecedented Ties

Australian Prime Minister Anthony Albanese has recently stated that "no country is more important to Australia than Indonesia." This assertion, made during a visit to Jakarta, signals a significant elevation in the perceived value of Indonesia to Australia's strategic and economic interests. The statements were made in the context of strengthening bilateral ties, including the signing of a new joint security treaty. However, an examination of the evidence suggests a complex picture where Australia's emphasis on Indonesia may not be entirely reciprocated, despite the ongoing efforts to deepen cooperation.

A Foundation of Renewed Partnership

The current phase of Australia-Indonesia relations appears to be marked by a deliberate effort from both sides to forge a closer partnership. Prime Minister Albanese's visit to Jakarta in May 2025, which included official talks with Indonesian President Prabowo Subianto, underscored this objective. This visit was noted as Albanese's first overseas trip following his re-election, highlighting the strategic significance placed on Indonesia.

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Albanese says ‘no country is more important to Australia’ than Indonesia. Is this really true? - 1

  • New Security Treaty: A historic Australia–Indonesia Treaty on Common Security was signed, described as taking defense cooperation to a new level. This treaty reflects a close friendship, partnership, and deep trust between the two nations.

  • Joint Initiatives: The agreement includes initiatives to support the development of joint defense training facilities in Indonesia, signaling a tangible commitment to enhanced military collaboration.

  • Economic Engagement: Australia has also signed a memorandum of understanding with Indonesia's Sovereign Wealth Fund, Danantara, indicating an interest in deepening economic ties and potentially increasing private sector engagement in Indonesia's economy.

  • Shared Vision for the Indo-Pacific: Both leaders reaffirmed a commitment to regional peace, prosperity, and stability in the Indo-Pacific region, emphasizing sustainable engagement, capacity-building, and value-based cooperation.

Divergent Perspectives on Mutual Importance

While Australia appears to be prioritizing its relationship with Indonesia, the extent to which this sentiment is mirrored by Indonesia, particularly in its defense considerations, warrants closer examination.

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  • Australia's Defensive Shield: Indonesia is considered critically important to Australia as a "northern defensive shield." This geographical proximity and potential security role underscore Australia's strategic interest in maintaining a stable and cooperative relationship with Jakarta.

  • Indonesia's Global Outlook: Conversely, reports suggest that Australia's importance to Indonesia's own defense calculations might be less pronounced. Indonesia appears to maintain a broader global focus, relying heavily on trade and investment from China and sourcing military hardware from Russia.

  • Reciprocal Attention: One analysis posits that while Australia places significant importance on Indonesia, "Australia struggles to get Indonesia’s attention," suggesting a potential imbalance in the perceived mutual importance of the relationship.

Indications of a Shifting Regional Dynamic

The deepening of ties between Australia and Indonesia occurs against a backdrop of evolving regional dynamics. Australia's engagement with Indonesia has been framed in part by its broader strategic alignment, including discussions around AUKUS, a pact involving Australia, the United States, and the United Kingdom, which is seen as a plan for military build-up in the region.

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  • Australia's Strategic Alignment: Albanese's visit and the push for closer ties with Indonesia have been interpreted by some as an effort to align Indonesia with an anti-China stance. However, this approach may be complicated by Indonesia's significant economic reliance on China.

  • Indonesia's Geopolitical Calculus: Indonesia's position appears to be one of balancing relationships. While President Prabowo has expressed a "genuine affection for Australia," the country's economic and defense dependencies present a complex geopolitical calculus.

  • Information and Cultural Exchange: Interestingly, amidst these strategic discussions, there is an observation that "Indonesia literacy in Australia is the lowest in decades," suggesting a potential disconnect between official pronouncements of importance and public understanding or engagement with Indonesia.

Expert Analysis: Navigating a Complex Partnership

The emphasis on the Australia-Indonesia relationship signifies a strategic decision by Canberra to elevate ties with its northern neighbor. Penny Wong, Australia's Minister for Foreign Affairs, has highlighted the signing of the security treaty as a move to enhance bilateral security cooperation.

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President Prabowo, while acknowledging Australia as a "closest neighbor and strategic partner" and highlighting shared maritime boundaries, has also been observed to be open about Indonesia's "hunger for more foreign investment." This suggests that while security and strategic alignment are important, economic development remains a significant driver for Indonesia.

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The commitment to "deepen strategic cooperation between the two countries for the sake of prosperity, security, and stability in the Indo-Pacific region" articulated by both leaders indicates a shared aspiration. However, the long-term success of this partnership may depend on how effectively both nations navigate their differing strategic priorities and economic dependencies.

Conclusion: A Strengthened Bond with Unanswered Questions

Prime Minister Albanese's assertion of Indonesia's unparalleled importance to Australia marks a clear signal of Canberra's foreign policy priorities. The signing of a historic security treaty and agreements on economic cooperation demonstrate a tangible strengthening of the bilateral relationship. These developments reflect a deliberate effort to foster deeper trust and collaborative initiatives.

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However, questions remain regarding the depth of reciprocity from Indonesia, particularly concerning its own defense strategy and its perception of Australia's relative importance. While Indonesia acknowledges Australia as a key partner and neighbor, its economic ties with China and its global sourcing for military hardware suggest a more multifaceted approach to its international relations. The apparent disparity in "Indonesia literacy" within Australia also raises a point for consideration in fostering a truly comprehensive understanding between the two nations. The coming period will reveal whether this renewed emphasis translates into a fully balanced and mutually driven partnership.

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Frequently Asked Questions

Q: Why does Australia think Indonesia is important?
Australia sees Indonesia as a neighbor to its north that helps keep it safe. They also want to do more business together.
Q: What new agreement did Australia and Indonesia sign?
They signed a new treaty to work together more closely on security and defense.
Q: Does Indonesia think Australia is as important?
Indonesia says Australia is a close neighbor and partner. But Indonesia also has strong ties with China for business and buys weapons from Russia.
Q: What is the "Indonesia literacy" mentioned?
It means that fewer people in Australia know much about Indonesia now, even though the leaders say the relationship is very important.