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Briefing Book for the 42nd Parliament

Australia–Indonesia Relations

Australia has a national interest in supporting a successful and prosperous Indonesia and optimising co-operation with Indonesia in regional and international forums. Relations with Indonesia were one of the Howard Government’s key foreign policy priorities. Indonesia, which has a population of about 230 million, is one of Australia’s closest northern neighbours. It has had an uneven development record, and the activities of a small number of terrorist groups have adversely affected both countries. The diversity of Australia’s foreign policy objectives necessitates a delicate balancing in relation to several issues that have arisen in Australia’s relations with Indonesia.

Australia’s role in East Timor’s struggle for independence in 1998–99 resulted in a period of tension between the two countries at that time. Since then, however, relations have been significantly repaired. Indeed, out of tragic events such as the October 2002 Bali bombings, the 2004 Boxing Day Tsunami, and the 2005 Sea King helicopter crash on Nias, opportunities for extensive co-operation between the two countries have emerged. Relations have also been facilitated by the election of Susilo Bambang Yudhoyono as president, his leadership of a competent, moderate government and the positive contacts between Yudhoyono and then Prime Minister John Howard (who attended the President’s inauguration in October 2004).

The period from late 2002 has been marked by consolidation of Australia–Indonesia relations at a government-to-government level, notwithstanding challenges associated with: Australia’s stance on the global war on terror, illegal Indonesian fishing boats in Australian waters, Papuan asylum seekers, and reactions within Australia to the Indonesian judicial system’s treatment of terrorists and Australian citizens Schapelle Corby and the ‘Bali nine’.

Yudhoyono’s bilateral visit to Australia in April 2005 enabled negotiations about the development of a new security treaty—the
Lombok Treaty’. The two countries signed the treaty, which is designed to address traditional and non-traditional security threats, on 13 November 2006. Some analysts expressed concern about the terms of the treaty, suggesting that it may raise unrealistic expectations in Indonesia about the Australian Government’s capacity to moderate debate on sensitive political issues in bilateral relations.

Australia and Indonesia cooperate on issues including counter-terrorism, illegal fishing, people smuggling, avian influenza, climate change and inter-faith dialogue. Australia’s sustained commitment to targeted development assistance has also provided a positive focus for the relationship. Nonetheless, there is a pressing need for an improvement in people-to-people relations. This might involve providing resources to the education sector to foster informed and constructive mutual understanding between Australians and Indonesians. However, a sharp decline in the study of Indonesian language in Australia will not assist such initiatives.