Australia and Indonesia have formally elevated their security relationship, signing what both governments describe as a historic treaty that deepens defence, economic and strategic cooperation between the two neighbours.
Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto signed the Australia–Indonesia Treaty on Common Security in Jakarta on Saturday, concluding a visit aimed at reinforcing ties with one of Australia’s most important regional partners.
The treaty is designed to take bilateral defence cooperation to a new level, reflecting what both sides describe as a relationship built on trust, partnership and shared regional interests. It formalises closer collaboration on security matters at a time of growing strategic complexity across the Indo-Pacific.
As part of the agreement, Australia announced a suite of new initiatives to expand practical defence cooperation. These include support for the development of joint defence training facilities in Indonesia, the creation of a new embedded position for a senior Indonesian military officer within the Australian Defence Force, and the expansion of the Junior Leaders’ Forum Military Education Exchange to strengthen links between future military leaders.
Beyond defence cooperation, the two governments also moved to strengthen economic security. Australia and Indonesia agreed to enhance two-way investment through a Memorandum of Understanding between the Australian Government and Indonesia’s sovereign wealth fund, Danantara. The agreement is intended to increase cooperation and information sharing, while identifying opportunities to grow bilateral investment and improve economic resilience.
The investment agreement builds on broader efforts to deepen Australia’s economic engagement with Indonesia, which Canberra views as central to its strategy of diversifying trade and investment links across Southeast Asia.
Speaking after the signing, Prime Minister Albanese said the treaty reflected the depth of the bilateral relationship and a shared commitment to regional stability.
“Australia and Indonesia share deep trust and an unbreakable bond as neighbours, partners and friends,” he said. “This historic treaty recognises that the best way to secure peace and stability in our region is by working together.”
He said strengthening economic and security engagement with Indonesia would help ensure a peaceful, stable and prosperous region that benefits both countries, and thanked President Prabowo for hosting the visit.
Foreign Minister Penny Wong described the agreement as a milestone in the bilateral relationship, saying it underscored the central role of regional partnerships in Australia’s security outlook.
“The Jakarta Treaty 2026 takes the Australia-Indonesia relationship to a new level,” she said. “We know our security comes from our relationships and our region, and there is no more important partner for Australia than Indonesia.”
She said the treaty was about supporting one another during challenging times and strengthening the foundations of cooperation, describing it as a clear sign of the close friendship and trust between the two nations and their leaders.
The Australia–Indonesia Treaty on Common Security is expected to shape defence, security and economic cooperation between the two countries for years to come, reinforcing Indonesia’s position as a cornerstone of Australia’s regional engagement.
