Australia and Indonesia are on the verge of signing what both governments describe as a “watershed” defence treaty—one that marks a new era of security cooperation between two of the Indo-Pacific’s most strategically important neighbours.
The agreement, approved on Wednesday by Australian Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto, commits the two nations to deepen collaboration on regional security. Although the treaty will not be officially signed until January, both leaders hailed it as a milestone in their long and often complex relationship.
According to Albanese, the pact will establish a framework for regular consultations between leaders and defence ministers, ensuring both sides coordinate on security challenges in the region. It also includes provisions for joint or individual action if either country’s security is threatened.
“This treaty is a recognition that peace and stability are best secured by acting together,” Albanese said, calling it a signal of “a new era in the Australia–Indonesia relationship.”
President Prabowo echoed this sentiment, invoking an Indonesian saying that in times of crisis, “it is our neighbour who comes to help.” He described Australia as one such neighbour and partner.
While the full text of the treaty has not yet been released, Australian officials say it builds upon earlier agreements, including the 1995 Keating–Soeharto Security Agreement, the 2006 Lombok Treaty, and the 2024 Defence Cooperation Agreement.
The 1995 pact was scrapped after Australia supported a UN peacekeeping mission in East Timor, which had been under Indonesian occupation until its independence in 2002. Since then, ties between Jakarta and Canberra have steadily improved, underpinned by trade, counterterrorism, and maritime security collaboration.
The new treaty arrives amid shared unease over China’s expanding military influence in the South China Sea and Pacific region. Both countries see Beijing as a vital economic partner but also a potential security risk.
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Former Australian Prime Minister Paul Keating reflected on the original 1995 deal, noting that he and then-President Soeharto already foresaw a “rising China” as a strategic concern decades ago.
The upcoming treaty, Albanese said, will “future-proof” the partnership—ensuring Australia and Indonesia stand ready to meet regional challenges together.