Indonesia is Australia's 13th largest trading partner with total two-way . We have experience in advising on free trade agreements and market. Indonesia and Australia announced the conclusion to talks on a free-trade deal as the Pacific neighbors attempt to boost economic ties. Two-way trade between Australia and Indonesia was worth (IA-CEPA), intended to build upon existing agreements.
Tampa affair and the War on Terror[ edit ] The relationship came under strain in August during the Tampa affairwhen Australia refused permission for the Norwegian freighter ship MV Tampa to enter Australian waters while carrying Afghan asylum seekers that it had rescued from a distressed fishing vessel in international waters.
The Indonesian Search and Rescue Agency did not immediately respond to requests from Australia to receive the vessel. When the ship entered Australian territorial waters after being refused permission, Australia attempted without success to persuade Indonesia to accept the asylum seekers. Norway also refused to accept the asylum seekers and reported Australia to international maritime authorities.
The incident prompted closer coordination between Indonesian and Australian authorities, including regional conferences on people smuggling, trafficking in persons and other trans-national crime. Jemaah Islamiyaha violent Islamist group, claimed responsibility for the attack, allegedly in retaliation for Australia's support for East Timorese independence and the War on Terror.
Indonesia country brief - Department of Foreign Affairs and Trade
The following year, Indonesian diplomatic and consular premises in Australia received a number of hoax and threat messages. Since then, both the United States and Australian governments have issued warnings against travel to Indonesia, advising their citizens of a continued risk of attacks.
A key outcome was support for the conclusion of a security agreement, later realised as the Lombok Agreement, providing a framework for the development of the security relationship by the end of on defence, law enforcement, counter-terrorismintelligence, maritime security, aviation safety, WMD non-proliferation, and bilateral nuclear cooperation for peaceful purposes.
President Susilo Bambang Yudhoyono visited Australia in Apriland became the second Indonesian leader to address federal parliament: The day when policy makers, academicians, journalists and other opinion leaders all over the world take a good look at the things we are doing so well together. And they will say: But they now have a fair dinkum of a partnership.
During the same visit, President Yudhoyono was appointed an Honorary Companion of the Order of Australiathe country's highest civilian honour, for strengthening the bilateral relationship, and promoting democracy and development. The decision attracted significant criticism from the federal oppositionand Indonesia threatened to take the dispute to the World Trade Organization. Austrade estimates that more than Australian companies operate in Indonesia.
Negotiations first started in and the deal is expected to be signed in late Former Prime Minister Turnbull previously visited Indonesia on 12 November where he met President Widodo to discuss infrastructure, trade and investment and our common interest in countering violent extremism before making one of President Widodo's famous blusukan impromptu visits to the Tanah Abang textile market in Jakarta. Former Foreign Minister Bishop visited Indonesia 10 times.
Most recently from August during which she officially opened the Consulate-General in Surabaya. Ministers welcomed the opportunity to exchange frank views on the geo-strategic shifts underway in the Indo-Pacific, recognising our shared security and prosperity is affected by developments in both the Pacific and Indian Oceans. The meeting discussed the importance of effective maritime cooperation as a key part of Australia's joint response to the region's strategic challenges.
It also considered how we can do more together in areas such as counter-terrorism and cyber security.
2. Australia's trade relationship with Indonesia
Read the Joint Statement. This represents the next step in boosting Australia-Indonesia maritime cooperation following the signing of the Joint Declaration in February Recent bilateral visits include: Both countries reaffirmed their commitment to strengthening bilateral relations in August by signing a Joint Understanding on the implementation of the Lombok Treaty, which provides an agreed approach to enhancing intelligence cooperation.
Australia and Indonesia also work closely on a range of common strategic interests in regional and global fora. Cooperation on counter-terrorism Australian and Indonesian authorities have cooperated closely to detect and deter terrorist attacks in Indonesia since the Bali bombings. Our counter-terrorism cooperation now involves a wide range of partnerships in law enforcement, legal framework development, criminal justice, counter-terrorism financing, countering violent extremism, defence, transport and border security, intelligence, and the security of chemical, biological, radiological, nuclear and explosive CBRNE materials.
More than 15, officials from 70 countries have completed over training courses at JCLEC on addressing transnational crimes — such as people smuggling and money laundering — as well as terrorism.
Cooperation on combatting people smuggling Australia and Indonesia work closely together to combat people smuggling and human trafficking, including by co-chairing the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime.
2. Australia's trade relationship with Indonesia – Parliament of Australia
We strongly support cooperative measures with Indonesia to improve border integrity and enforcement. We also continue to work with our regional partners to combat people smuggling and human trafficking, by strengthening legal frameworks and boosting the capabilities of criminal justice agencies and civil society organisations.
Trade and investment There is considerable opportunity for Australia to expand its trade, investment and economic cooperation relationship with Indonesia, which is the largest economy in South-east Asia and 16th largest economy in the world. Demand in Indonesia for consumer goods and services — particularly for premium food and beverages, education and healthcare, financial and ICT services and tourism — and its ambitious infrastructure investment agenda aligns well with Australian industry capabilities.
Agricultural products are among Australia's key merchandise exports to Indonesia, while crude petroleum and manufactured goods are key imports. IA-CEPA will create the framework for a new era of closer economic engagement between Australia and Indonesia and open new markets and opportunities for businesses, primary producers, service providers and investors.
Australia also works closely with Indonesia in in multilateral, global and regional fora, including the World Trade Organization WTOAPEC and the G20to support global and regional trade liberalisation and economic growth.
Development cooperation Australia works in an economic partnership with Indonesia, supporting its efforts to leverage its own resources to generate growth and distribute those benefits to a larger number of its people.
Australia provides policy and technical advice that will improve the quality of Indonesia's investments in infrastructure, economic governance, human development and social policy.
Priority areas include good governance, improved productivity and competitiveness, and human resource quality. It has a focus on eastern Indonesia to help address regional disparities in development, whilst maintaining growth momentum in other parts of the country.