Australian officials accustomed to dealing with Indonesia are cognisant of the limitations to strategic cooperation, but Canberra needs to be more realistic and creative in how it approaches the critical relationship with Jakarta. Australia places greater strategic value on the relationship with Indonesia than vice versa. That dynamic is unlikely to change fundamentally. Optimism and ambition will still be needed to achieve a more balanced partnership, but it's also crucial that Australian policymakers ground their expectations in this reality. Politicians, in particular, should guard against optimism bias.
There are still plenty of opportunities for both countries to engage more deeply across a range of shared security challenges. This report analyses the defence and wider security partnership and identifies several areas where Indonesia and Australia should productively concentrate their efforts in the coming years, particularly to counter the rise of hybrid threats.
The 2024 Australia–Indonesia Defence Cooperation Agreement (DCA) is best understood as a continuation of, rather than an acceleration in, the strategic relationship. But it provides Australia with useful avenues to expand its defence relationship with Jakarta, at a time when Indonesia finds itself courted by other countries that don't share Australia's security interests. Ultimately, the DCA reflects Canberra's long-term investment in a defence partnership that can address evolving regional security challenges. From disaster response and maritime patrols to multilateral peacekeeping, the agreement lays the groundwork for a future in which the two countries' armed forces can operate together effectively. Continued engagement should centre on expanding military training programs, enhancing operational coordination, and exploring new areas of cooperation, especially to counter hybrid threats. The DCA's future success will depend on the ability of both sides to manage their differing aspirations, motivations and strategic outlooks in a rapidly deteriorating global security environment.
Proper management of those differences, rather than avoidance of them, would better position the two countries for practical cooperation on clear common interests but which, too often, is limited to positive prose instead of action. Revitalising the Australia–Indonesia security relationship requires a shift in focus, away from treating defence cooperation as simply an expression of goodwill or strategic alignment and towards framing it as a joint response mechanism to shared vulnerabilities. Australia and Indonesia face a convergence of challenges, such as maritime insecurity, cyberattacks, disinformation, illegal fishing and transnational crime, that affect both nations and undermine the broader stability of the Indo-Pacific.
Responses to those shared concerns can still guide the two countries' defence partnership in the absence of strategic alignment.
By investing in functional collaboration—through interoperable training, coordinated hybrid threat responses and trilateral maritime frameworks involving states such as the Philippines—both countries can build a more flexible and purpose-driven security partnership. This approach acknowledges the limitations to cooperation without being paralysed by them, allowing the relationship to evolve around problem-solving rather than the chimera of strategic convergence.
