Australia Indonesia treaty: Albanese spruiks strengthened defence, economic ties amid welcome for Prabowo

Anthony Albanese has announced a new “watershed” treaty with Indonesia to strengthen defence ties “in times of security threats” to either neighbouring nation.

The Prime Minister described it as a “new era” agreement while alongside Indonesian President Prabowo Subianto during his one-day State visit to Australia.

“This treaty will commit Australia and Indonesia to consult at a leader and ministerial level on a regular basis on matters of security, to identify and undertake mutually beneficial security activities,” the PM said.

“And if either or both countries’ security is threatened, to consult and consider what measures may be taken either individually or jointly, to deal with those threats.

“This is a watershed moment. It signals a new era in the Australia-Indonesia relationship.”

It comes amid China’s growing military presence and after multiple incidents of Chinese naval vessels circumnavigating Australia.

The pair talked up their friendship and close cooperation, with the decision not going unnoticed to host the press conference on the top of HMAS Canberra docked at a major Royal Australian Navy base in the heart of Sydney.

President Prabowo Subianto has described a new treaty between Australia and Indonesia as an “important agreement” based on the “best of intentions”.

He said neighbours must support each other and looked forward to “close cooperation in the defence and security fields”.

“We cannot choose our neighbours. It is our destiny to be direct neighbours. So let us face our destiny with the best of intentions,” Mr Prabowo said.

“I believe in the good neighbour policy. Good neighbours are essential. Good neighbours will help each other in times of difficulties. When we face an emergency, it is our neighbour that will help us.”

He said the Treaty was about “reaffirming our determination to enhance our friendship” as partners and close neighbours.

Mr Albanese will visit Indonesia in January to formally sign a new treaty, which he said would build on the 2006 Lombok Treaty and the Defence Cooperation Agreement signed last year.

Mr Albanese said it had also been based on the landmark 1995 agreement between Indonesia and Australia, which had been signed by former President Muhammad Soeharto and former Australian PM Paul Keating.

However, it was later torn up over disagreements between the two countries over the crisis in East Timor.

“The treaty is predominantly based on the landmark security agreement signed by the Keating and Suharto governments 30 years ago,” he said.

“I hope to travel to Indonesia in January next year at the President’s invitation to formally sign the new treaty, after it has gone through our domestic processes.”

Indonesia has previously been vehemently non-aligned and independent on defence policy, making Wednesday’s announcement more historic.

Despite having several Australian and a group of Indonesian journalists at their press conference, held on top of HMAS Canberra, neither leader took questions.

The President’s official visit to Australia marks his first Down Under since being sworn in as leader as October 2024.

After Mr Prabowo touched down in Sydney on Tuesday evening for a lightning trip, he visited Kirribilli House on Wednesday morning for a one-on-one with Mr Albanese.

He later attended Admiralty House for a ceremonial welcome and state lunch with Governor-General Sam Mostyn before travelling to Royal Australian Navy Base at Garden Island.

Among dignitaries who greeted Mr Prabowo’s travelling party was Foreign Minister Penny Wong and Nationals MP Michael McCormack.

Mr Albanese has made no secret in prioritising the relationship, with the first international trip of his second term to Indonesia — undertaken just days after winning the Federal Election in May.

The PM said he was “delighted” to host President Prabowo on home soil and the opportunity to “return the warm and generous hospitality” provided during his Jakarta trip.

“Australia and Indonesia share a deep trust and unbreakable bond as neighbours, partners and friends,” the PM said.

“Together we are committed to working for a secure, stable, and prosperous Indo‑Pacific.

Mr Prabowo had also been among more than 20 leaders Mr Albanese met with on the sidelines of the ASEAN and APEC summits held in Malaysia and South Korea in October.

The Indonesian leader was expected to hold various other meetings on Wednesday afternoon centred on trade, investment and education.

Mr Prabowo, who is a former military general, had visited Canberra in August 2024 when he was then-Defence Minister and President-elect.

His appointment to top job comes after the three-decade rule of Indonesia’s former President Suharto, who was Mr Prabowo’s former father-in-law.