Chapter 4 - Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence

  1. Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence
    1. The inquiry into the Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence lapsed on 28 March 2025 with the prorogation of Parliament, and was re-referred to the Committee for continued consideration on 29 July 2025.
    2. The Committee received two submissions and held a public hearing in Canberra on 25 September 2025. A list of submissions can be found in Appendix A and the details of the hearing and witnesses can be found in Appendix B. The transcript of evidence from the public hearing can be accessed through the Committee’s website.

Overview and background

4.3In February 2023, Deputy Prime Minister Marles and Indonesian Defence Minister Prabowo released a Joint Ministerial Statement of Intent to upgrade the existing Defence Cooperation Arrangement between Australia and Indonesia.[1]

4.4At the public hearing, the Department of Defence (Defence) stated that Prime Minister Albanese considers ‘no country as more important to Australia than Indonesia.’[2] Defence officials went on to explain:

[The Agreement] is a strong signal of our shared intent to promote a peaceful, stable and prosperous region where international law and sovereignty are respected. [The Agreement] supports our already complex defence relationship, spanning around 20 annual joint exercises and a large education, training and exchange program.[3]

4.5The Agreement replaces an existing arrangement between Australia and Indonesia, with one that is binding under international law. It will increase opportunities for defence activities between the two States,[4] and provide more detailed provisions on how the Parties will conduct future defence cooperation.[5]

4.6The Agreement will strengthen the friendly relations Australia has with Indonesia through improved defence interoperability, in areas such as maritime security, counter terrorism, humanitarian and disaster relief, logistics support, education and training, as well as across defence industry.[6]

Justification

4.7The Committee considered the rationale for elevating Australia–Indonesia defence cooperation to a treaty-level agreement. At the public hearing, Defence explained the Agreement is not merely symbolic, but a practical instrument designed to support deeper collaboration:

…this [is] a fit-for-purpose treaty that will deepen our defence cooperation and reflect the nature of our partnership and our respective strategic outlooks and policy approaches. Doing so in a binding treaty-level commitment signals the strength of the relationship and the depth of our commitment to the relationship. Doing so in a defence cooperation agreement at treaty level allows us to conduct more complex activities and…signals that shared commitment.[7]

4.8The Agreement will allow for enhanced practical cooperation and interoperability between both defence forces in areas such as maritime security, counter terrorism, humanitarian and disaster relief, logistics support, defence industry, and education and training.[8] In particular it will enable:

  • more complex joint activities and exercises between the Australian Defence Force and Indonesian National Armed Forces
  • Australia and Indonesia to operate from each other’s countries for mutually determined cooperative activities
  • the continued exchange of personnel for education and training
  • technical cooperation, including in areas of science and technology
  • enhanced legal protections for our respective personnel.[9]
    1. The broad range of cooperative activities facilitated by the Agreement will build operational familiarity and mutual understanding between the defence forces of the two countries, as Defence explained at the public hearing:

We pursue…interoperability through a wide range of cooperative activities, and what we find is that interoperability will be enabled by having a good understanding between TNI [Tentara Nasional Indonesia, the Indonesian National Armed Forces] and ADF [the Australian Defence Force] of how each operates. That can be enhanced when TNI personnel come to ADF training courses in Australia under our Defence Cooperation Program, and we offer around 110 places to TNI personnel each year.[10]

Obligations

4.10The Agreement includes an obligation to simplify procedures for defence cooperation over time.[11]

4.11A non-exhaustive list of fields where cooperative activities will be promoted under the Agreement is detailed in Article 3. Fields listed here include humanitarian, maritime security, peacekeeping, education and training, and logistics support, and medical services.[12]

4.12Articles 4 and 6 detail the specific forms of activities that each Party must undertake to promote their defence cooperation, and their obligations regarding the conduct of these activities.[13]

4.13The provisions of the Agreement are reciprocal and apply to the Parties equally.[14]

Governance

4.14The Indonesia-Australia Defence Strategic Dialogue (IADSD) will act as a forum to monitor, manage and review the implementation of the Agreement.[15] Article 5 sets out the role, composition, operational, and meeting requirements for the IADSD.

4.15Article 5(2) states that the IADSD shall be composed of representatives from each Party and be co-chaired by the Secretary General of the Ministry of Defence of the Republic of Indonesia and the Secretary of the Department of Defence of Australia, or an authorised representative as designated in writing.[16]

4.16Further, the IADSD may establish working groups to address specific activities of mutual interest, and shall be complemented by annual Military to Military Talks, including the High-Level Committee and service-to-service talks.[17]

Jurisdiction

4.17Article 10(2) states that the Receiving State shall have criminal jurisdiction over Visiting Military Personnel, the Civilian Component and Dependants with respect to offences that are committed within the territory of the Receiving State, and punishable by the laws of the Receiving State.[18]

4.18Article 10(3) states that the Sending State shall have criminal and disciplinary jurisdiction over Visiting Military Personnel, the Civilian Component and Dependants with respect to offences that are committed within the territory of the Receiving State and punishable by the laws of the Sending State.[19]

4.19In instances of concurrent jurisdiction, where both countries may have jurisdiction Article 10(4) provides that the exercise of jurisdiction by one or both of the Parties shall be mutually determined by taking into account the Parties’ respective international obligations and domestic laws.[20]

4.20In a situation where the Visiting Military Personnel, the Civilian Component or a Dependant is suspected of having committed an offence that carries a maximum penalty greater than imprisonment in the Receiving State, Article 10(7) provides that the Parties must consult, taking into account each Party’s respective domestic and international obligations, while also recognising the importance of avoiding impunity for offences.[21]

4.21The approach to negotiating the Agreement was underpinned by Australia’s longstanding and clear opposition to the death penalty and Australia’s international and domestic human rights obligations, noting that Indonesia currently retains the death penalty for certain offences.[22]

Consultation

4.22No concerns were identified during the NIA consultation process.[23]

4.23The Department of Defence consulted both internally and externally with a range of agencies including the Attorney-General’s Department, the Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet, the Department of Home Affairs, the Department of the Treasury, and the Department of Finance.[24]

4.24State and Territory Governments were consulted through the Interjurisdictional Working Group’s Standing Committee on Treaties.[25]

Implementation

4.25Cooperative Activities are to be implemented by the Department of Defence of Australia, the Ministry of Defence of the Republic of Indonesia, and/or both Parties’ respective Defence Forces (Article 4(2)).[26]

4.26It is not anticipated that any legislative or regulatory action will be required to implement the Agreement in Australia.[27]

4.27No action will be required from States or Territories to implement the Agreement.[28]

Termination

4.28Should either Party seek to terminate the Agreement they are required to give a minimum of at least one hundred and eighty (180) days’ written notice. Alternatively, the Agreement may be terminated at any time by mutual written consent.[29]

4.29Termination of the Agreement does not release either Party of their obligation regarding any specific Cooperative Activities mutually determined by the Parties prior to the Agreement’s termination (Article 15(5)). Additionally, party obligations regarding Classified Information, jurisdiction, claims and disputes shall continue to apply notwithstanding the termination of the Agreement.[30]

Costs

4.30Each Party is responsible for their own cost of participation in Cooperative Activities pursuant to the Agreement, unless otherwise mutually determined by the Parties.[31]

Future treaty action

4.31As per Article 15(3) the Agreement may be amended at any time where both Parties agree in writing, and any proposed changes would be subject to Australia’s standard domestic treaty-making requirements.[32]

Ratification status

4.32As of May 2025, Indonesia was still in the process of ratifying the agreement. President Prabowo confirmed that Indonesia was committed to finalising the ratification process and continuing discussions to enhance defence collaboration.[33]As of August 2025, both governments have reaffirmed their commitment to the treaty and expressed intent to finalise ratification soon. The agreement is expected to enter into force following completion of domestic approval processes.[34] At the public hearing, the Committee heard that in Indonesia the treaty still requires ‘a parliamentary approval process and the development of implementing legislation’.[35]

Issues

4.33The Committee sought clarity on Indonesia’s existing defence cooperation arrangements with other nations. Defence confirmed that Indonesia maintains defence cooperation agreements or arrangements with a range of countries, including the Republic of Korea, Singapore, Fiji, Papua New Guinea, India, Türkiye, the United Arab Emirates, Malaysia, the Philippines, and the United States. In several cases, these agreements have been signed but are yet to enter into force.[36] At the public hearing Defence stated:

It really is a matter for Indonesia, of course, to comment on the arrangements or agreements they have with other countries, but we're aware, from the public domain, that Indonesia has defence cooperation agreements with [those countries].[37]

4.34The Committee raised questions regarding Indonesia’s defence engagement with Russia. Defence acknowledged Indonesia’s sovereign right to determine its foreign relations and reiterated Australia’s position on Russia’s actions globally:

…Australia respects Indonesia's right to make sovereign decisions about its engagement with foreign governments, and…[Indonesia] has pursued some cooperative activities with Russia and other countries. For Australia's part, our position on Russia and its actions around the world is clear. We condemn Russia's illegal and immoral invasion of Ukraine and have been working to provide Ukraine with support…[38]

4.35The Committee examined how the treaty’s provisions for technology exchange align with Australia’s obligations under other defence agreements, particularly those involving third-party suppliers such as the United States. Defence explained:

…we are interested in deepening our defence, science and technology cooperation with Indonesia… Like Australia, Indonesia is very interested in developing its defence industrial base[39]…we, of course, are very mindful of, and adhere fully to, the international obligations we have around transfer of technology, including those provided by the United States or other third parties.[40]

4.36The Committee raised concerns about the protection of sensitive military information under the treaty, particularly in the context of joint exercises and interoperability. Defence responded that the treaty is built on mutual determination and respect, and includes safeguards for classified information. They explained:

[The Agreement’s] very much built on mutual determination of activities and the core principles of mutual respect, cooperation and sovereignty... Australia works to uphold the national interest, and, if that requires us to be very protective of information or intelligence we have or to protect technology that we might have developed or received from a third party, we will make sure that we have arrangements and practices in place to uphold our national interest, and we expect Indonesia to do the same.[41]

Ultimately, both Indonesia and Australia choose what information that they will share with each other...article 13 does provide a framework of protections for any classified information that is shared between our countries.[42]

Committee comment

4.37The Committee acknowledges the longstanding defence relationship between Australia and Indonesia and welcomes the formalisation of this partnership through a binding treaty. The Agreement replaces the previous Defence Cooperation Arrangement with a more comprehensive and legally robust framework that reflects the strategic priorities of both nations.

4.38The Treaty’s provisions for enhanced interoperability, joint training, and technical collaboration is welcomed by the Committee. These measures will support the development of defence capability and operational readiness, while also fostering deeper institutional ties between the Australian Defence Force and the Indonesian National Armed Forces.

4.39The Committee notes that the Treaty includes safeguards for the protection of sensitive information and defence technology. The inclusion of Article 13 and the principle of mutual determination provide a clear framework for managing classified material and ensuring Australia’s national interests are upheld.

4.40The Committee acknowledges Indonesia’s broader network of defence agreements and respects its sovereign right to engage with a range of international partners. The Committee considers this Treaty to be a valuable addition to Australia’s regional defence architecture, offering a constructive and principled basis for cooperation.

4.41The Committee supports the ratification of the Treaty and encourages its timely implementation to enable structured cooperation and ensure both parties can operate within a clear and mutually agreed framework.

Recommendation 3

4.42The Committee supports the Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence and recommends that binding treaty action be taken.

Footnotes

[1]National Interest Analysis [2024], ATNIA 22 with attachment on consultation, Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence, [2024] ATNIF 40 (NIA), para 6.

[2]Mr Bernard Philip, First Assistant Secretary, International Policy Division, Department of Defence, Committee Hansard, 25 September 2025, p. 1.

[3]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 1.

[4]NIA, para 10.

[5]NIA, para 2.

[6]Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence (Magelang, 29 August 2024) ATNIA reference: [2024] ATNIA 22 ATNIF reference: [2024] ATNIF 40, Article 2.

[7]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 2.

[8]Hon Richard Marles MP, Minister for Defence, ‘Australia-Indonesia Defence Cooperation Agreement Signed’, Media Release, 29 August 2024.

[9]Hon Richard Marles MP, Minister for Defence, ‘Australia-Indonesia Defence Cooperation Agreement Signed’, Media Release, 29 August 2024.

[10]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 3.

[11]NIA, para 8.

[12]NIA, para 15.

[13]NIA, paras 16–17.

[14]NIA, para 6.

[15]Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence (Magelang, 29 August 2024) ATNIA reference: [2024] ATNIA 22 ATNIF reference: [2024] ATNIF 40, Article 5.

[16]Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence (Magelang, 29 August 2024) ATNIA reference: [2024] ATNIA 22 ATNIF reference: [2024] ATNIF 40, Article 5.

[17]Agreement between the Government of Australia and the Government of the Republic of Indonesia on Cooperation in the Field of Defence (Magelang, 29 August 2024) ATNIA reference: [2024] ATNIA 22 ATNIF reference: [2024] ATNIF 40, Article 5.

[18]NIA, para 22.

[19]NIA, para 22.

[20]NIA, para 22.

[21]NIA, para 25.

[22]NIA, para 25.

[23]NIA, Attachment on Consultation, para 1.

[24]NIA, Attachment on Consultation, para 1.

[25]NIA, Attachment on Consultation, para 2.

[26]NIA, para 39.

[27]NIA, para 41.

[28]NIA, Attachment on Consultation, para 2.

[29]NIA, para 46.

[30]NIA, para 47.

[31]NIA, para 44.

[32]NIA, para 45.

[33]The Star, Indonesia and Australia strengthen defence collaboration and expand market access for both countries, 17 May, 2025, https://www.thestar.com.my/aseanplus/aseanplus-news/2025/05/17/indonesia-and-australia-strengthen-defence-collaboration-and-expand-market-access-for-both-countries (accessed 5 September 2025).

[34]Hon Richard Marles MP, Deputy Prime Minister and Minister for Defence, Senator the Hon Penny Wong, Minister for Foreign Affairs, His Excellency Sugiono, Minister of Foreign Affairs and His Excellency Sjafrie Sjamsoeddin, Minister of Defence, ‘Joint Statement on the Ninth Australia-Indonesia Foreign and Defence Ministers' 2+2 Meeting’, Joint Statement, 28 August 2025.

[35]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 2.

[36]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 2.

[37]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 2.

[38]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 4.

[39]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 4.

[40]Air Commodore Christopher Taylor, General Counsel, Military Law, Department of Defence, Committee Hansard, 25 September 2025, p. 4.

[41]Mr Philip, Department of Defence, Committee Hansard, 25 September 2025, p. 4.

[42]Air Commodore Taylor, Department of Defence, Committee Hansard, 25 September 2025, p. 5.