Australia has been invited to invest in Indonesia’s sovereign wealth fund, while both countries will jointly develop new training facilities in the Asian giant.
These pledges form part of the newly inked defence pact between both nations in what Prime Minister Anthony Albanese—currently in Jakarta—described as a “historic moment” in their 75-year relationship.
“It demonstrates the strength of our partnership and depth of our trust and cooperation. Australia and Indonesia share one of the world’s longest maritime boundaries, which naturally makes us close partners, but today, we are more than just partners. We are close friends,” Albanese said alongside Indonesian President Prabowo Subianto,
- Both sides will support the development of joint defence training facilities to expand Indonesia’s capacity to run joint exercises, including with Australia.
- Australia will allow Indonesia to embed a senior officer within the Australian Defence Force to further defence exchanges.
- Australia and Indonesia will expand military education exchange to strengthen understanding among future military leaders.
- Australia will deepen economic engagement with Indonesia and Southeast Asia as a government priority.
- The two governments have agreed to a memorandum of understanding with Indonesia’s sovereign wealth fund, Dhanantara. The MoU will increase cooperation and information-sharing between Australian agencies and Danantara.
Regional Strategy Against the CCP
The agreement with Jakarta is the fourth security pact Australia has signed in recent months, reflecting a broader push by Canberra to shore up partnerships across the Indo-Pacific as strategic competition with Beijing continues.In October 2025, Australia and India finalised a Joint Maritime Security Collaboration Roadmap aimed at strengthening naval cooperation, alongside a renewed Joint Declaration on Defence and Security Cooperation.
Later in the same month, Canberra signed an Enhanced Defence Cooperation Agreement with Singapore, expanding reciprocal access to military facilities and boosting collaboration in areas such as defence science, logistics and professional training.
It also concluded a mutual defence agreement with Papua New Guinea—the “Pukpuk Treaty”—committing both countries to respond if either is attacked.
Earlier this year, Prime Minister Anthony Albanese pledged $15 million over four years to strengthen maritime cooperation with Indonesia, including the creation of an annual maritime security dialogue.
The move came amid reports—denied by Jakarta but published by defence outlet Janes—that Russia had explored the possibility of basing military aircraft in Indonesia’s easternmost province.
