'Historic' Indonesia-Australia security treaty boosts ties, highlights concerns over China

Pact also reflects worries about weakening US commitment to Indo-Pacific region, says analyst

- Jonathan Pearlman

It was an unusual sight: Australia’s Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto both wearing HMAS Canberra caps, aboard the Australian navy’s flagship vessel on Nov 12.

But the matching caps hinted at the surprise announcement behind the Indonesian President’s whirlwind one-day visit – his first state visit to Australia: The two countries had agreed to a landmark security treaty in what Mr Albanese described as a “watershed moment”.

The pact will establish regular meetings between leaders and ministers to discuss security and greater military cooperation, but does not commit the countries to mutual defence.

Still, analysts see it as a significant step for the two neighbours as they try to address shared concerns about China’s expanding military and increasing regional assertiveness - and a revealing move by Jakarta, which prides itself on its nonaligned foreign policy.

University of Melbourne’s Professor Tim Lindsey, an expert on Australia-Indonesia ties, told The Straits Times the treaty reflects the shared and complicated approaches both countries have taken towards China. The neighbours are seeking to address security concerns about China without jeopardising their economic relations with Beijing, he said.

"Indonesia, like Australia, is walking a balancing act with China – this agreement reflects that," he said.

"Like Australia, Indonesia has massive economic dependency on China and is deeply anxious about China’s ambitions for the region."