Indonesia is one of Australia’s most consequential and enduring bilateral relationships. We enjoy extensive cooperation, including on strategic, economic, security, development and education matters. 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) which commits both countries to respect each other’s sovereignty, territorial integrity and independence. 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; annual meetings between senior Trade Ministers; the Economic Policy Dialogue; and the Ministerial Energy Dialogue.
President Prabowo Subianto last visited Australia on 12 November 2025, when he met Prime Minister Anthony Albanese and Governor-General Sam Mostyn AC. Leaders announced the substantive conclusion of negotiations towards a bilateral Treaty on Common Security. The Treaty will commit Australia and Indonesia to: undertake to consult at leader and ministerial level on a regular basis about matters affecting their common security; undertake to consult each other in the case of adverse challenges to either party or to their common security interests; and promote mutually beneficial cooperative activities in the security field, in areas to be identified by the two Parties.
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;
- committed to strengthening Indonesia’s health system and biosecurity by announcing the $100 million Australia Indonesia Partnership for Health Transformation over 2025-33;
- committed to a $15 million package to enhance bilateral maritime cooperation; and
- announced a $50 million KINETIK Fund for Green Infrastructure, under the $200 million Australia-Indonesia Climate and Infrastructure Partnership launched in June 2022.
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 with the international community to assist the Palestinian Authority in meeting new commitments, including to institute reforms to law enforcement and schooling.
High-level visits
There has been a high tempo of two-way visits by Australian and Indonesian ministers. Bilateral visits in 2025 included:
- Indonesian President Prabowo Subianto visited Sydney in November 2025.
- Indonesian Foreign Minister Sugiono and Indonesian Defence Minister Sjafrie Sjamsoeddin visited Canberra in August 2025.
- Foreign Minister Penny Wong visited Jakarta in August 2025.
- International Development Minister Anne Aly visited Jakarta and Surabaya in August 2025.
- Agriculture Minister Julie Collins visited Jakarta in July-August 2025.
- Deputy Prime Minister Richard 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 Home Affairs Minister Tony Burke visited Jakarta in May 2025.
- Indonesian Foreign Minister Sugiono, Youth and Sports Minister Dito Ariotedjo, and Investment Vice Minister Todotua Pasaribu visited Sydney in March 2025.
- Indonesian Health Minister Budi Gunadi Sadikin visited Canberra in February 2025.
Defence and security
Australia's defence relationship with Indonesia is strong and deepening. We conduct around 20 exercises a year. Areas of focus include education and training, maritime security, humanitarian assistance, and peacekeeping.
Cooperation between Australia and Indonesia on security matters is underpinned by the Lombok Treaty (2006). Australian and Indonesian defence ministers signed the Defence Cooperation Agreement (DCA) on 29 August 2024 at the Indonesian Military Academy in Magelang, Central Java. This treaty-level Agreement allows 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.
On 29 October 2025, Parliament’s Joint Standing Committee on Treaties recommended that Australia take binding treaty action, thus completing Australia’s domestic process for entry into force. Australia notified Indonesia that our domestic process was complete by submitting an Entry into Force Third Person Note on 30 October 2025. The DCA will enter into force following the completion of Indonesia’s domestic requirements. Once entered into force, the Agreement will supersede our current Defence Cooperation Arrangement (signed in 2008, and updated in September 2021).
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; efforts to combat 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.
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, and in October 2025 Australia commemorated the 20th anniversary of the 2005 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 focused 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 cyberspace 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 ambitions to join the Organisation of Economic Co-operation and Development (OECD).
Economic partnership
Australia’s economic partnership with Indonesia is supported by the 2020 Comprehensive Economic Partnership Agreement (IA-CEPA), initiatives under Invested: Australia’s Southeast Asia Economic Strategy to 2040, and several economic cooperation programs.
Trade
Australia enjoys strong levels of trade with Indonesia. In 2024-25, Indonesia was our 9th largest two-way trading partner by value ($34.83 billion) and our 10th largest export market ($16.42 billion). Indonesia was Australia's largest market for live cattle and wheat.
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 2025, around 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.
Aside from IA-CEPA, Australia and Indonesia are also members of 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.
Investment
Indonesia's economy is the world's 17th largest (nominal GDP) and is projected by the IMF to grow 4.9 per cent in 2026. 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. Initiatives under Invested are seeking to deepen Australian trade and investment links with Indonesia and other countries in Southeast Asia.
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.
Australia’s Investment Deal Team in Jakarta, a recommendation of Invested, is working to develop and facilitate deeper Australian investment in Indonesia. A regional technology Landing Pad has been established in Jakarta to bring together startups, research institutions, and tech players to drive digital transformation.
Western Sydney University Chancellor Professor Jennifer Westacott AC serves as Business Champion for Indonesia and regularly leads missions to Indonesia to promote commercial opportunities for Australian investors and businesses.
The $2 billion Southeast Asia Investment Financing Facility (SEAIFF) is also supporting investment opportunities in Indonesia aligned with Invested. In October 2025, the Government announced the SEAIFF will invest in $175 million in IFM Investors' Asia-Pacific Debt Fund and USD50 million in a new Southeast Asia Public-Private Partnership (PPP) investment fund established by Australian infrastructure specialist Plenary.
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. IA-CEPA serves as a framework for closer economic engagement between Australia and Indonesia, opening new markets and opportunities for businesses, primary producers, service providers and investors.
IA-CEPA is currently undergoing a General Review to ensure the Agreement remains fit for purpose. Public submissions to inform the General Review are now open and will close on 31 March 2026.
Economic Cooperation
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. A new phase of Katalis is planned to commence in early 2026.
One component of IA-CEPA, the Indonesia-Australia Skills Development Exchange (SDE) Pilot gives businesses from Australia and Indonesia the opportunity to send employees to the other country to undertake workplace placements for up to twelve months. 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.
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.
The $200 million Australia-Indonesia Climate and Infrastructure Partnership (KINETIK) was launched in March 2024 to support Indonesia’s infrastructure and climate priorities in its transition to Net Zero. KINETIK is helping Indonesia access a broader mix of public, private and climate finance, comprising $50 million to derisk private infrastructure projects through the Private Infrastructure Development Group (PIDG), $50 million through Australian Development Investments to invest in small and medium-sized enterprises in Indonesia’s green economy, and $100 million in policy, technical and programming support to Indonesia's energy transition.
The Australia-Indonesia Electric Vehicle (EV) Mechanism facilitates collaboration on developing an EV ecosystem. Both countries have committed to work together on mapping EV supply chains, improving environmental and social governance, joint scientific and research studies, as well as fostering new business-to-business links.
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 a 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 (NCP). Since 2014, the Australian Government has provided 158 NCP scholarships, and 14,133 NCP Semester and Mobility grants for Australian undergraduates to study and take internships in 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 Australian 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 1.75 million visits were made by Australian residents in 2024-25.
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, ACICIS 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