In his first overseas bilateral meeting of the Government’s second term, Prime Minister Anthony Albanese returned to familiar ground—Jakarta—for the annual Australia–Indonesia Leaders’ Meeting.
Meeting with Indonesian President Prabowo Subianto, Albanese underscored the strategic importance of the relationship, calling Indonesia an “indispensable partner” in navigating a more complex and uncertain global landscape.
This marked Albanese’s fourth visit to Indonesia as Prime Minister, a frequency that signals more than just diplomatic routine. “I am pleased to again make Indonesia my first bilateral leaders’ meeting in this new term of Government,” he said. “It reflects the high priority I accord to this vital relationship.”
The leaders’ Joint Communiqué outlines a broad and ambitious agenda aimed at deepening the two countries’ Comprehensive Strategic Partnership. From boosting economic ties and defence collaboration to health security and climate resilience, the meeting reflected the growing breadth of the relationship.
Albanese and Prabowo discussed enhancing trade and investment, particularly through Invested: Australia’s Southeast Asia Economic Strategy to 2040. The plan is designed to help Australian businesses tap into emerging opportunities in Indonesian sectors such as renewable energy, healthcare, agriculture, infrastructure and mining.
“Our two great nations continue to invest in each other through our strong trade relationship,” Albanese noted, pointing to mutual economic gains and the “deepening of bonds between us.”
Central to these efforts is the review and expansion of the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA). The refreshed framework will seek to accommodate growth areas driven by digital trade, the net zero transition, and critical and emerging technologies.
Security and defence cooperation also featured prominently in the talks. Building on the momentum from last year’s Australia–Indonesia Defence Cooperation Agreement, the Albanese Government unveiled a suite of new initiatives, including $15 million over four years to enhance maritime cooperation and establish an annual dialogue on maritime issues. The Australian Defence Force will also host Indonesian military personnel for training exercises in the Northern Territory later this year. In addition, $3.5 million will be directed toward a clinical anti-malaria drug trial for the Indonesian military.
Beyond security, the leaders turned their attention to health resilience, with Australia committing $100 million to support Indonesia’s efforts to detect and respond to infectious diseases.
“We’re partnering with Indonesia on its domestic priorities to bolster regional stability and health security.”
Further initiatives include support for Indonesia’s sovereign wealth fund, Danantara, to join the International Forum of Sovereign Wealth Funds, and conduct an investor roadshow in Australia. Australia will also contribute $50 million to the Fund for Green Infrastructure, under the bilateral KINETIK partnership, to accelerate clean energy projects and climate-ready infrastructure.
Education and people-to-people ties remain a strong pillar in the relationship. Australia will double the number of participants in its Indonesian Language Learning Ambassadors program, and offer ten scholarships to Indonesian educators under the Garuda Schools Program to pursue a Master of Education in Australia.
Sport also featured on the bilateral agenda, with leaders welcoming enhanced cooperation between Football Australia and the Football Federation of Indonesia (PSSI). Plans are underway for major event collaboration and women’s football mentorship.
Summing up the tone of the meeting, Albanese reflected,
“I am proud of the enduring friendship between Australia and Indonesia, and I look forward to working closely with President Prabowo on our countries’ shared priorities.”
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