A Relationship Like Siblings: Close, Clashing, and Connected
Indonesia and Australia are like siblings who live next door: close geographically, deeply connected, sometimes clashing, but always coming back to the same table. Their relationship has been defined by a mix of cooperation, tension, and mutual learning a dynamic that makes it one of the most complex and important bilateral ties in Southeast Asia.
Australia was among the first countries to support Indonesia’s independence in 1945, setting the tone for future cooperation. But like any long-term relationship, it hasn’t always been smooth. From differences over East Timor to wiretapping scandals, trust has been tested. Yet, both sides consistently return to the table, because the stakes are too high to ignore.
A Renewed Commitment: Albanese’s Visit to Jakarta
In May 2025, just days after being re-elected, Australian Prime Minister Anthony Albanese made Indonesia his first international destination. That gesture alone sent a strong message: Indonesia is not just another neighbor, it’s a priority.
At Istana Merdeka, PM Albanese was warmly welcomed by President Prabowo Subianto. Their meeting underscored a mutual desire to elevate the relationship across strategic, economic, and social sectors.
Strengthening Security and Strategic Ties
One of the key outcomes of the visit was a reaffirmation of the Defence Cooperation Agreement (DCA) signed in 2024. Both leaders agreed to fast-track ratification processes and intensify military collaboration. This includes more joint training exercises, maritime surveillance in the Arafura and Timor Seas, and shared counterterrorism initiatives.
As two major players in the Indo-Pacific, Indonesia and Australia understand that regional security cannot be maintained in isolation. Their cooperation is seen as a stabilizing force, especially amid rising tensions in the South China Sea and growing influence from major powers.
Economic Bridges: From IA-CEPA to Green Investment
On the economic front, both countries are continuing to build upon the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which came into effect in 2020. This agreement opens up reduced tariffs, greater access for Indonesian professionals to work in Australia, and increased Australian investment in vocational training and technology.
During the 2025 visit, new areas of focus emerged particularly agriculture, fisheries, and renewable energy. Australia expressed interest in helping Indonesia develop green energy infrastructure, while Indonesia encouraged more Australian investment in MSMEs and digital transformation initiatives.
Australia also reaffirmed its support for Indonesia’s bid to join the CPTPP and the OECD, acknowledging Indonesia’s growing role on the world stage.
Navigating Differences, Building Common Ground
Despite strong ties, Indonesia and Australia often approach global issues from different lenses. Australia’s traditional alliances with the West and Indonesia’s non-aligned, ASEAN-first posture sometimes lead to differing stances on matters like the Middle East, China, or human rights.
But instead of letting those differences create distance, both countries have increasingly chosen dialogue over discord. Albanese and Prabowo agreed to deepen communication channels both formal and informal to maintain mutual understanding, even when interests diverge.
This is diplomacy at its most mature: knowing that disagreement doesn’t mean disconnection.
The Human Side: Education and Youth Diplomacy
One of the most enduring aspects of Indonesia-Australia relations is people-to-people connection, especially through education.
Australia is consistently one of the top destinations for Indonesian students studying abroad, with more than 20,000 Indonesians enrolled in Australian institutions annually. These students become informal ambassadors, building bridges of cultural understanding and forming professional networks that last decades.
At the same time, the New Colombo Plan has enabled thousands of young Australians to study and intern in Indonesia, helping them better understand the region and break down outdated stereotypes.
These exchanges go beyond classrooms, they shape how the next generation of leaders, entrepreneurs, and policymakers perceive each other’s nations.
Why This Relationship Matters More Than Ever
With global geopolitics shifting rapidly and regional challenges like climate change, cybersecurity, and supply chain disruptions on the rise, the Indonesia–Australia relationship is more vital than ever.
It’s no longer enough to be friendly neighbors. Both nations need to act like real partners aligning strategies, managing differences constructively, and maximizing shared opportunities.
The choice of Indonesia as PM Albanese’s first post-election visit wasn’t just symbolic, it was strategic. It reflects how Canberra sees Jakarta as essential to a stable, prosperous, and interconnected Indo-Pacific.
Final Reflection: Like It or Not, We’re in This Together
From historical solidarity to high-level cooperation and generational exchange, Indonesia and Australia have evolved into a pair of regional anchors. Sure, there will be arguments. There may even be moments of friction. But the foundation is strong and growing stronger.
As both countries move forward under new leadership and new global realities, the hope is that this complex friendship can mature into a model of mutual respect, shared values, and lasting collaboration.
Because like any sibling relationship, what matters isn’t perfection, it’s perseverance.
References
- Setkab. (2025, May 16). Dari Istana Merdeka, Presiden Prabowo dan PM Albanese Sepakat Tingkatkan Kerja Sama Pertahanan hingga UMKM. Retrieved from https://www.presidenri.go.id/siaran-pers/dari-istana-merdeka-presiden-prabowo-dan-pm-albanese-sepakat-tingkatkan-kerja-sama-pertahanan-hingga-umkm/
- AP News. (2025, May 16). Australian leader visits Indonesia seeking deeper economic and defense ties. Retrieved from https://apnews.com/article/indonesia-australia-albanese-second-visit-42f06b3d44b1e6b9ca255fc90597a436
- Reuters. (2025, May 16). Australia PM Albanese to meet Indonesia counterpart in first international visit since re-election. Retrieved from https://www.reuters.com/world/asia-pacific/australia-pm-albanese-meet-indonesia-counterpart-first-international-visit-since-2025-05-15/
