HomeAUAustralia Set to Finalize Groundbreaking Defense Agreement with World's Fourth-Largest Nation

Australia Set to Finalize Groundbreaking Defense Agreement with World’s Fourth-Largest Nation

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In a significant development today, the Prime Minister, speaking in Sydney alongside Indonesian President Prabowo Subianto, revealed that negotiations on a crucial agreement between Australia and Indonesia are nearly complete.

The agreement, anticipated to be officially signed in January, aims to strengthen the security ties between the two countries considerably.

Prime Minister Anthony Albanese welcomes Indonesian President Prabowo Subianto to Kirribilli House. Wednesday 12th November 2025.
Anthony Albanese and Prabowo Subianto have agreed to a new security treaty between Australia and Indonesia. (Sitthixay Ditthavong)

Prime Minister Albanese stated, “This treaty will ensure that Australia and Indonesia engage in regular discussions at both the leader and ministerial levels on security issues, with the goal of identifying and undertaking security activities that are beneficial to both parties.”

He added, “In the event that the security of one or both nations is at risk, this agreement mandates consultation to explore potential measures that could be taken individually or collectively to address such threats.”

Albanese described the agreement as a “watershed moment” in the bilateral relationship.

The world’s fourth-largest country by population with some 285 million people, Indonesia has for years remained non-aligned and largely neutral even with geopolitcal tensions in the region increasing.

It has deepened ties with Western nations including Australia and inked deals to buy military equipment from the likes of France and the US, but at the same time maintained ties to Moscow.

Australian and Indonesian Army tanks take part in Super Garuda Shield multi-national military exercises in Baluran, West Java, Indonesia, Monday, Sept. 11, 2023.
Australian and Indonesian tanks during military drills in 2023. (AP Photo/Tatan Syuflana)

Just last year, Indonesia held its first-ever bilateral military drills with Russia, at the same time as it was carrying out its own exercises with Australia.

Albanese said the new treaty would build on previous deals signed between Canberra and Jakarta.

“This treaty represents a major extension of our existing security and defence cooperation,” he said. 

“It shows the relationship is as strong as it has ever been, and that’s a great thing for our region and for the people of both Australia and Indonesia.”

Subianto said it was crucial for his nation to have strong regional relationships.

“In the Indonesian culture, we have a saying, when we face an emergency, it is our neighbour that will help us,” he said.

“Maybe our relatives will remain far away, but our neighbours are the closest and only good neighbours will help each other.”

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