Factsheet: Australia-Indonesia relationship

Photograph by Mia Salim / DFAT
Photograph by Mia Salim / DFAT

TRADE RELATIONSHIP

Indonesia is Australia’s twelfth largest trading partner (2013 calendar year)

  • $14.9 billion in two-way trade for goods and services in 2013
  • A$9 billion in imports from Indonesia
  • A$7 billion in exports to Indonesia

Free Trade Agreement Negotiations
Both countries are members of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which entered into force in 2010 and was Australia’s first multi-country FTA.

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) negotiations commenced in 2012, and there have been two rounds of negotiations thus far. The agreement is intended to free up impediments to bilateral trade and investment.

Both countries are also members currently in process of negotiating a Regional Comprehensive Economic Partnership, as well as the Trans-Pacific Partnership (TPP)

Business Links

  • There are an estimated 400 or more Australian companies operating in Indonesia across many different sectors
  • Indonesia is one of most popular destinations for Australian tourists
  • Australia is also in Indonesia’s top five sources of visitors

AID

  • 2013/14 – Australia provided $581 million in foreign aid
  • 2014/15 – Budget Estimate of $605.3 million
  • Aid covers assistance to sectors such as economic and democratic governance, education and health sectors, infrastructure, social and rural development
  • Following the devastating 2004 tsunami, Australia’s military worked alongside Indonesia’s military in the emergency relief effort and the Australian government responded through the provision of more than $1 billion in aid

DEFENCE

  • Agreement on the Framework for Security Cooperation (The “Lombok Treaty”) – an agreement signed in 2006, which established a framework for addressing traditional and non-traditional security challenges collaboratively.
  • August 2014 – Signing of a ‘Join Understanding ’to enhance intelligence cooperation in the implementation of the Lombok treaty
  • September 2012 – Signing of the Defence Cooperation Agreement
  • Coordinated Maritime Patrol of the joint maritime borders by the Indonesian and Australian navies

LEADERS AND OFFICIAL DIALOGUES

  • Indonesia-Australia Annual Leaders Meeting
  • 2+2 Dialogue between Foreign and Defence ministers
  • Annual Defence Ministers’ meeting
  • Joint Trade Ministers’ Meeting

Organisations in the Australia-Indonesia space

Australia-Indonesia Institute
The Australia-Indonesia Institute (AII) was established by the Australian Government to contribute to a more broadly based and enduring relationship between Australia and Indonesia and to project positive images of Australia and Indonesia in each other's country.

Australia-Indonesia Centre
The Australia-Indonesia Centre was set up by the Australian Government, with the aim of strengthening ties with Indonesia through collaborative research, developing solutions to shared national challenges and promoting greater community understanding.

Australia-Indonesia Business Council
The Australia Indonesia Business Council Ltd (AIBC) is the peak, non-profit business association involved with the promotion and facilitation of trade and investment between Australia and Indonesia.

The Australian Consortium for ‘In-Country’ Indonesian Studies

The Australian Consortium for ‘In-Country’ Indonesian Studies (ACICIS – pronounced Ah-chee-chis, as an Indonesian would say it) is an innovative, non-profit, national educational consortium that was established in 1994 to overcome the substantial academic, bureaucratic, and immigration impediments that had prevented Australian students from undertaking credited semester study at Indonesian universities. Today ACICIS runs the Study Indonesia Program (SIP) which consists of a variety of study options in Indonesia and is also open to non-Australians and private individuals.

Australia-Indonesia Youth Association
The Australia Indonesia Youth Association (AIYA) is a youth-led, non-government organisation that, with the support of the Australia-Indonesia Institute, works to connect university students and young professionals from Indonesia and Australia.

Australian Centre for International Agricultural Research – Indonesia Program
The ACIAR engages in agricultural research in Indonesia, and contributes to the development of government strategy towards Australian aid in Indonesia.

Australia-Indonesia Arts Alliance
A national network of organisations and individuals involved with Australia-Indonesia cultural exchange with a vision of promoting Indonesian culture, arts and ideas.

Sources: Department of Foreign Affairs and Trade, Austrade, Australia-Indonesia Business Council