Australia and Indonesia: VCE Politics Unit 4

What this dot point is asking

You study Australia's relationship with at least two other states in the Indo-Pacific. Indonesia is a common choice because it is Australia's large near neighbour. Judge how far Australia's pursuit of its interests has led to cooperation and how far to conflict.

The answer

Australia's interests in Indonesia

• Security. A stable and friendly Indonesia secures Australia's northern approaches.
• Economic prosperity. Indonesia is a large and growing economy and a potential market and investment partner. The Indonesia-Australia Comprehensive Economic Partnership Agreement came into force in 2020.
• Regional relationships and standing. Indonesia is the largest ASEAN member, so a strong relationship improves Australia's standing in Southeast Asia.

Cooperation: the Treaty on Common Security

Australia and Indonesia signed the Treaty on Common Security on 6 February 2026, described by leaders as a watershed. It commits the two to regular leader and ministerial meetings and to consult if either faces serious threats, with plans for joint military training and an Indonesian officer placed in the Australian Defence Force. It followed work on economic security, including a memorandum between the Australian government and Indonesia's sovereign wealth fund Danantara to boost investment.

Challenges and differing perspectives

• Sovereignty and Papua. Commentators note that Indonesia's concerns about Papua and Australia's public and political debate about West Papua can strain the relationship, and that the new treaty may not resolve this.
• AUKUS. Indonesia expressed concern in 2021 about regional arms races and non-proliferation, while later working with Australia on security.
• Different strategic stances. Indonesia's "free and active" approach and BRICS membership (a group of major emerging economies, joined January 2025) mean it does not align with Australia's alliance approach.
• Asylum seeker policy. Indonesia has been a transit state, and past Australian boat turn-back policies have caused diplomatic friction.

Judging cooperation or conflict

Use three tests:

1. Depth. Are there formal mechanisms, funding and regular meetings?
2. Trust. Do both states describe it as mutually beneficial, and does it survive disagreements?
3. Delivery. Are commitments implemented?

The 2026 treaty scores strongly on depth and early trust, with delivery still to be shown. The conclusion most supported by the evidence is high cooperation with persistent areas of disagreement, rather than conflict.

Worked example

Question. To what extent has Australia's pursuit of its national interests led to cooperation with Indonesia?

Model answer outline. Thesis: largely cooperation. Evidence for: the 2026 treaty, the 2020 trade agreement, defence training and an investment memorandum. Evidence against: concerns about AUKUS, Papua and differing strategic positions. Judgement: cooperation outweighs conflict because both governments have committed to institutional mechanisms, but the relationship is not an alliance, so its limits remain.

Try this

Q1

Name one economic and one security link between Australia and Indonesia. Model answer: The 2020 economic partnership agreement and the 2026 Treaty on Common Security.

Q2

Explain one difference in perspective between the two states. Model answer: Indonesia's non-aligned approach differs from Australia's alliance with the United States and its AUKUS plans.

Q3

Why is implementation important when evaluating a treaty? Model answer: A treaty only builds cooperation if its commitments are carried out, so evidence of delivery is needed to judge effectiveness.