The Coalition plans to invest billions in the Pacific region.

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The Coalition has pledged $2 billion towards infrastructure in the Indo-Pacific, hoping to sway voters concerned about national security, as regional development becomes a “battleground for influence”.

In its latest election bid, the Coalition announced on Wednesday it would boost the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to increase defence and security in the region.

Global stability has been a talking point this election, with major party leaders regularly questioned about and Australia’s relationship with China in the wake of a .

What is the Coalition promising?

If elected, the Coalition would increase its funding for the AIFFP from $4 billion to $6 billion to support finance infrastructure projects like port upgrades in Papua New Guinea.

The body partners with governments and private businesses in the region through grants and loans and has been running since 2019.

Opposition foreign affairs spokesperson David Coleman said a prosperous Indo-Pacific is “fundamental”.

“Infrastructure financing has become yet another battleground for influence in our region,” he said, referencing longstanding cross-party efforts to ensure China — or any other potentially hostile power — does not exert influence or gain a security foothold in Australia’s backyard.

“A larger AIFFP under a future Coalition government will work to further strengthen Australia’s partnerships with nations across the Pacific and Timor-Leste,” Coleman said.

“It will complement the defence, security, and other economic ties which were at the core of the Coalition’s Pacific Step-up when last in government.”

What has Labor done for the Pacific?

The announcement follows criticism from Labor frontbenchers, who have accused Opposition leader Peter Dutton and former prime minister Scott Morrison of leaving a “vacuum” in the Pacific during their last term in government.

Since taking office in 2022, Prime Minister Anthony Albanese has made several policies and announcements in an attempt to bolster ties with the Pacific.

The government has made a defence pact with PNG, created regional policing and national security initiatives, and established a new visa for Pacific Islanders.

Why is Australia invested in the Indo-Pacific?

While the Indo-Pacific may not be top of mind for voters this election campaign, both major parties have continued to reference growing geopolitical uncertainty, and potential threats to Australia’s national security, as major concerns.

China spends billions on projects in the Indo-Pacific and while the Albanese government has worked to restore ties with China, their relationship remains under scrutiny, particularly after a Chinese “spy ship” circumnavigated Australia in March.

Albanese said at the time he would “prefer if it wasn’t there”.

“What our task is to do is to make sure that we represent Australia’s national interests. We do that each and every day. And I have every confidence in our defence force and our security agencies to do just that,” he said.

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Improving economic ties with the Indo-Pacific could also be viewed as a way to shore up Australia’s trade interests, in the wake of Trump’s tariff announcements and .

Both Dutton and Albanese’s relationships with Trump have been in the spotlight this election, as Trump’s decisions continue to impact markets around the world and in Australia.

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