Indonesia – the world’s third largest democracy with the world’s largest Muslim population – is one of Australia’s most important bilateral relationships. We enjoy extensive cooperation including on strategic, economic, security, development and education matters. In 2024, Australia and Indonesia celebrated 75 years of diplomatic relations. Australia’s diplomatic network in Indonesia includes our embassy in Jakarta and consulates-general in Bali, Surabaya and Makassar.

Bilateral relations

Indonesia is a vitally important partner for Australia. Cooperation between Australia and Indonesia is underpinned by the Lombok Treaty (2006). Both countries reaffirmed their commitment to strengthening bilateral relations in 2014 by signing a Joint Understanding on the implementation of the Lombok Treaty, which provides an agreed approach to enhancing intelligence cooperation.

 The Australia-Indonesia bilateral relationship was elevated to a Comprehensive Strategic Partnership (CSP) in 2018. The CSP coalesces bilateral cooperation around five broad pillars:

• enhanced economic and development partnership
• connecting people
• securing our and the region's shared interests
• maritime cooperation
• contributing to Indo-Pacific security and prosperity.

The relationship is underpinned by regular high-level meetings. These include the Annual Leaders' Meeting; 2+2 Foreign and Defence Ministers' Meeting; Ministerial Council on Law and Security; Economic, Trade and Investment Ministers' Meeting; the Economic Policy Dialogue; and the Ministerial Energy Dialogue.

The most recent Annual Leaders' Meeting was held in Jakarta on 15 May 2025. Prime Minister Anthony Albanese was accompanied by Foreign Minister Penny Wong and Home Affairs Minister Tony Burke. In the Joint Communique, Leaders discussed the growing strength and depth of the bilateral relationship and reaffirmed their commitment to peace, stability and prosperity in the region. Leaders committed to strengthening Indonesia’s health system and biosecurity by announcing the $100 million Australia Indonesia Partnership for Health Transformation over 2025-33. Australia also committed to a $15 million package to enhance bilateral maritime cooperation and a $50 million KINETIK Fund for Green Infrastructure, under the $200 million Australia-Indonesia Climate and Infrastructure Partnership launched in June 2022.

Prime Minister Anthony Albanese had previously announced commitments at the ASEAN-Australia Special Summit in Melbourne in March 2024, including:

• New regional technology Landing Pads, including in Jakarta, to bring together startups, research institutions, and tech players to drive digital transformation
• Regional hub locations for investment Deal Teams, including in Jakarta, to help identify pipelines for investment opportunities across Southeast Asia.

At the 3rd ASEAN-Australia Summit and the 18th East Asia Summit in Jakarta on 8 September 2023 the Prime Minister announced: 

• a bilateral mechanism to advance cooperation on Indonesia's electric vehicle cooperation [a Memorandum of Understanding was signed in November 2023 by former Minister for Industry and Science, Ed Husic and Minister Erick Thohir on behalf of Indonesia’s Coordinating Minister for Maritime Affairs and Investment].
• the second tranche of funding under the $200 million Climate and Infrastructure Partnership (KINETIK, launched March 2024), including $50 million to derisk private infrastructure projects through the Private Infrastructure Development Group (PIDG), and $100 million to support Indonesia's just energy transition. This is in addition to the $50 million announced at the 2022 Annual Leaders' Meeting to unlock private sector investment through Australian Development Investments (ADI).

The ninth 2+2 Foreign and Defence Ministers' Meeting was held in Canberra on 28 August 2025. Key outcomes of the 2+2 meeting included a new Australia-Indonesia Partnership for Peace and Stability, which will advance bilateral cooperation on conflict prevention. Ministers also announced our desire to work in partnership with the international community to assist the Palestinian Authority in meeting new commitments, including to institute reforms to law enforcement and schooling.

President Prabowo Subianto was inaugurated as Indonesia’s eighth president on 20 October 2024. He visited Australia for the 2+2 Foreign and Defence Ministers’ Meeting on 9 February 2023 and as a Guest of Government on 19-20 August 2024.

High-level visits

There has been a high tempo of two-way visits by Australian and Indonesian ministers. Bilateral visits in 2025 include:

• Indonesian Foreign Minister Sugiono and Indonesian Defence Minister Sjafrie Sjamsoeddin visited Canberra in August 2025.
• Foreign Minister Wong visited Jakarta in August 2025.
• International Development Minister Aly visited Jakarta and Surabaya in August 2025.
• Agriculture Minister Collins visited Jakarta in July-August 2025.
• Deputy Prime Minister Marles visited Jakarta in June 2025.
• Indonesian Coordinating Minister for Law, Human Rights, Immigration and Correctional Affairs Yusril Ihza Mahendra visited Canberra in June 2025.
• Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Minister for Home Affairs Tony Burke visited Jakarta in May 2025.
• Indonesian Foreign Minister Sugiono, Minister for Youth and Sports Dito Ariotedjo and Vice Minister for Investment Todotua Pasaribu visited Sydney in March 2025.
• Indonesian Minister for Health Budi Gunadi Sadikin visited Canberra in February 2025.

Defence and security

Cooperation between Australia and Indonesia on security matters is underpinned by the Lombok Treaty (2006).

Australia's defence relationship with Indonesia is strong. We conduct around 20 exercises a year. Areas of focus include education and training, maritime security, humanitarian assistance, and peacekeeping.

Our current Defence Cooperation Arrangement (signed in 2012), was updated in September 2021. On 29 August 2024, Australian and Indonesian Defence Ministers signed a Defence Cooperation Agreement at the Indonesian Military Academy in Magelang, Central Java. This treaty-level Agreement will allow for enhanced practical cooperation and interoperability between our defence forces in areas such as maritime security, counter terrorism, humanitarian and disaster relief, logistics support, education and training, as well as across defence industry. Both Australia and Indonesia are currently in the process of progressing entry into force requirements within our respective legal systems.

Maritime cooperation

Australia and Indonesia share the world's longest maritime boundary and are naturally close maritime partners. Maritime cooperation is one of the five pillars of the Australia-Indonesia CSP and its Plan of Action (2025-2029).

The focus areas of our cooperation include: strengthened maritime domain awareness and maritime border protection; combatting illegal, unreported and unregulated fishing; improved information sharing to combat transnational crime; greater regional and coastal interconnectivity; improved reliability and efficiency of shipping in the region; maritime connectivity and the blue economy; maritime safety; and more sustainable management of marine resources, among many more.

Counter-terrorism cooperation

Australian and Indonesian authorities have cooperated closely to detect and deter terrorist attacks in Indonesia since the 2002 Bali bombings. Our counter-terrorism cooperation now involves a wide range of partnerships in law enforcement, legal framework development, criminal justice, counter-terrorism financing, countering violent extremism, defence, transport and border security, intelligence, and the security of chemical, biological, radiological, nuclear and explosive materials.

In October 2022, Australia and Indonesia jointly commemorated the 20th anniversary of the Bali Bombings. A renewal of the Memorandum of Understanding (MoU) on Counter Terrorism and Violent Extremism was signed in September 2021. The MoU is supported by regular Australia-Indonesia Counter-Terrorism Consultations, last held in Canberra on 14 September 2023.

Marking its 20th anniversary in 2024, the Jakarta Centre for Law Enforcement Cooperation (JCLEC), a joint Australia-Indonesia initiative, has become an important regional centre for law enforcement training. More than 44,000 officials from 94 countries have completed training at JCLEC on addressing transnational crimes including terrorism, human trafficking and cybercrime.

Combatting people smuggling cooperation

Australia and Indonesia work closely together to combat people smuggling and human trafficking, including by co-chairing the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime. We strongly support cooperative measures with Indonesia to improve border integrity and enforcement. We also continue to work with our regional partners to combat people smuggling and human trafficking, by strengthening legal frameworks and boosting the capabilities of criminal justice agencies and civil society organisations.

Cyber cooperation

Australia and Indonesia recognise the important role of an open, secure, stable, accessible and peaceful cyber space in driving economic growth, enhancing national security and fostering international stability. A renewed MoU on Enhanced Cyber Security and Critical Technology Cooperation was signed in Jakarta on 20 August 2025.

Multilateral and regional cooperation

Australia and Indonesia work closely on a range of common strategic interests in multilateral and regional fora. We cooperate closely with Indonesia in the UN, Asia-Pacific Economic Cooperation (APEC), G20, the East Asia Summit (EAS), ASEAN Regional Forum, Indian Ocean Rim Association (IORA) and the grouping of Mexico, Indonesia, Republic of Korea, Türkiye and Australia, known as MIKTA. We are collaborating in the Indo-Pacific Economic Framework (IPEF), including through the IPEF Supply Chains Agreement. Furthermore, a Memorandum of Understanding on Trilateral Cooperation with the Pacific was signed in September 2021.

We are also supporting Indonesia's ambition to join the Organisation of Economic Co-operation and Development (OECD). Australia supported Indonesia's priorities as Chair of ASEAN and the East Asia Summit in 2023. In March 2024, we hosted an ASEAN-Australia Special Summit in Melbourne to celebrate 50 years since Australia became ASEAN's first Dialogue Partner.

Trade and investment

Australia enjoys strong trade with Indonesia. Australia is a major supplier of agricultural products (wheat, live cattle, beef, cotton), minerals (gold, iron ore, aluminium oxide and concentrates) and energy (coal, crude petroleum), which support Indonesia’s food security, energy security and economic growth.

Indonesia's growing consumer market is also looking to Australia for food and beverages, healthcare, education, tourism and other quality Australian exports. In 2024 over 24,000 Indonesians were studying in Australia on a student visa.  Opportunities for other sectors are emerging as the Indonesian economy continues to grow, transform and become more open.

In 2024, Indonesia was our 9th largest two-way trading partner by value ($16.13 billion) and our 10th largest export market ($165.13 billion). Indonesia was Australia's largest market for live cattle  and wheat. Indonesia is a popular destination for Australian visitors, accounting for 14.2 per cent of all overseas trips in 2024-25. 

Indonesia's economy is the world's 17th largest (nominal GDP) and is projected by the IMF to grow 4.7 per cent in 2025. Attracting foreign investment is a priority for the Indonesian government and Indonesia's favourable macroeconomic trends, demographic fundamentals and economic policy settings contribute to an investment environment that may present opportunities to Australian investors. In 2024, the total stock of Australian investment in Indonesia was valued at $1.36 billion and the total stock of Indonesian investment in Australia was valued at $1.42 billion.

Invested: Australia’s Southeast Asia Economic Strategy to 2040 (the Moore Report) was launched by the Prime Minister in Jakarta in 2023. The Invested: Indonesia to 2040 investment market guide outlines the size of the market opportunity for Australian businesses, including reforms Indonesia has made to attract investment and opportunities in key Indonesian sectors.

• Invested: Indonesia to 2040 — Opportunities and Pathways for Australian Investors [PDF 2 MB]
• Invested: Indonesia to 2040 — Opportunities and Pathways for Australian Investors [DOCX 6.5 MB]

Australia’s Investment Deal Team in Jakarta, a recommendation of Invested, is working to develop and facilitate deeper Australian investment in Indonesia. The $2 billion Southeast Asia Investment Financing Facility is also supporting investment opportunities in Indonesia aligned Invested.

The Australia-Indonesia Partnership for Economic Development (PROSPERA) assists Indonesian economic institutions implement policies that contribute to strong, sustainable and inclusive economic growth. A new phase of PROSPERA is planned to commence in 2026.

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)

On 5 July 2025, Australia and Indonesia celebrated the fifth anniversary of the Indonesia-Australia Comprehensive Economic Partnership Agreement's (IA-CEPA) entry into force. It created the framework for closer economic engagement between Australia and Indonesia, opening new markets and opportunities for businesses, primary producers, service providers and investors. A new phase of Katalis is planned to commence in early 2026.

IA-CEPA's economic cooperation program, Katalis, is a government-backed business development program unlocking the potential of economic partnership between Australia and Indonesia. Katalis takes a commercially oriented approach to maximising the benefits of IA-CEPA for Indonesia and Australia through improved market access, increased two-way trade and investment, and inclusive economic growth.

Also as part of IA-CEPA, the Indonesia-Australia Skills Development Exchange (SDE) Pilot gives businesses from Australia and Indonesia the opportunity to send employees to undertake workplace placements for up to twelve months in the other country. The Pilot aims to provide an opportunity for participants to develop their own workplace skills while strengthening cooperation and understanding between Australia and Indonesia. By building strong people-to people links, the Pilot will equip participants with the cultural competency and global perspective necessary to make the most of the opportunities offered by an increasingly interconnected world.

Other trade agreements Australia has with Indonesia include the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP). AANZFTA has reduced a wide range of tariffs on trade between Australia and Indonesia. RCEP builds on the outcomes of AANZFTA to promote further growth in the region.

Development cooperation

Australia's development partnership with Indonesia (estimated $351.4 million, 2025-26) is supporting equitable and sustainable economic transformation, climate-resilient communities, and strong institutions. The overarching goal for our development partnership is to promote Indonesia's prosperity, stability and resilience, and strong links between our two countries. We are working together on shared development priorities in line with Indonesia's National Long Term Development Plan 2025-2045 (RPJPN) and vision of achieving high-income country status by 2045 (Visi Indonesia Emas 2045), alongside commitments to the Sustainable Development Goals.

We have a long history of working together, and our development partnership is evolving to keep pace with Indonesia's rapid development and policy ambition. We are responsive, flexible, and able to seize opportunities for collaboration in areas of mutual interest, including building stronger and deeper institutional linkages and advancing gender equality, disability and social inclusion.

The Australia–Indonesia Development Partnership Plan 2024-28 (DPP) articulates shared development priorities between Australia and Indonesia, outlining joint objectives, implementation strategies and mechanisms for monitoring process. It is underpinned by extensive consultations with a broad range of partners, including government, civil society and other development organisations.

Program highlights include:

• Supporting high-quality infrastructure projects through KIAT [$300 million, 2016-26].
• Providing economic governance advice through PROSPERA [$259 million, 2018-26].
• Supporting just energy transition through the Climate and Infrastructure Partnership, KINETIK [$200 million, 2022-27].
• Increasing efficiency and effectiveness of local governance through SKALA [$160 million, 2022-30].
• Offering study, research and professional development opportunities in Australia through Australia Awards Indonesia [$128 million, 2022-30].
• Strengthening civil society engagement on gender equality, disability and social inclusion through INKLUSI [$120 million, 2021-29].
• Supporting knowledge partnerships between Australian and Indonesian organisations through KONESKI [$65 million, 2023-27].
• Advancing the Australia-Indonesia Health Transformation Partnership “KITA SEHAT” [$130 million, 2025-33].

Education

Indonesia and Australia enjoy a strong relationship with many initiatives operating across all levels of the education sector. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is opening opportunities for Australian investment in the higher education sector, in support of the Government of Indonesia’s commitment to upskill 57 million Indonesians by 2030. Deakin University, in partnership with Lancaster University, recently opened a campus in Indonesia (Bandung). Western Sydney University (Surabaya) and Monash University (Jakarta) also have campuses in Indonesia.

More than 200,000 Indonesians in total have studied in Australia, including senior government and business leaders. The Australia Awards Indonesia program is one of the largest scholarships programs in Indonesia, offering around 220 scholarships and short term awards each year.

Indonesia remains the most popular destination for students under the Australian Government’s New Colombo Plan. Since 2014, 129 NCP scholarships and 13,000 NCP mobility grants have been awarded for Indonesia.

Australia has supported education reform in Indonesia for many years through our development partnership. The INOVASI program is Australia’s flagship basic education investment in Indonesia. INOVASI works at the national level on policy, curriculum and capacity building and at the local level in several provinces. INOVASI supports the Prabowo administration’s priority to provide equal access to quality basic education.

The BRIDGE Program (Building Relationships through Intercultural Dialogue and Growing Engagement) uses technology to build links between Australia and Indonesian teachers and students. The project has established 200 school partnerships and has involved 800 Australian and Indonesian teachers.

People connections

People connections are an important component of our relationship with Indonesia. There are longstanding cultural, tourism, education and business connections.

Indonesia is Australia’s top destination for short-term overseas travel. Around 1.53 million Australians visited Indonesia in 2024.

Links between schools, exchanges, visits and scholarships provide an important foundation for engagement. Organisations including Asia Education Foundation, Australia-Indonesia Centre, ANU Indonesia Project, Australia-Indonesia Youth Association and student associations play a key role in building these links.

The Australia-Indonesia Institute (AII), established in 1989, has a long history of fostering greater mutual understanding and amplifying Australia's standing in Indonesia. Through its programs and networks, AII contributes to a more broadly based and enduring relationship facilitating increased contact between Australians and Indonesians and projecting positive images of Australia and Indonesia in each other's country.

AII flagship programs include:

• Australia-Indonesia Youth Exchange Program.
• Australia-Indonesia Muslim Exchange Program.
• Australia-Indonesia Institute Indonesian Studies Award.
• Elizabeth O'Neill Journalism Award.
• Australia-Indonesia Senior Editors' Program.