Tania Lawrence (Hasluck, Australian Labor Party) Share this | Hansard source

I thank the member for Solomon for raising this important matter. The Australia-Indonesia Treaty on Common Security, the Jakarta treaty, reflects serious regional leadership and a clear understanding of Australia's place in the world. At its heart, this agreement recognises a fundamental truth: Australia's security does not stop at our shoreline. It is shaped by the strength of our relationships with our neighbours, and none is more important than our relationship with Indonesia. As the Prime Minister said at the signing in Jakarta, no country is more important to Australia or to the prosperity, security and stability of the Indo-Pacific than Indonesia.

This treaty reflects a close friendship, partnership and deep trust between our nations, and recognition that the best way to secure peace and stability in our region is by acting together. The agreement itself gives practical expression to that principle. It commits our countries to regular consultation at a leader and ministerial level on matters affecting our common security. It provides that, in the face of adverse challenges, Australia and Indonesia will consult on and consider measures that may be taken individually or jointly. It promotes mutually beneficial cooperation in the security field consistent with each nation's policies and priorities. By way of example, this will include establishing a new embedded position for a senior Indonesian officer in the Australian Defence Force—a clear example of the trust between our nations. It will be the development of joint defence training facilities and education exchanges between our militaries to build relationships and increase our understanding about the next generation of military leaders.

In a world that has become less stable than the international order, which is decidedly less predictable, we also need to be proactive in encouragement of a sturdy and lasting relationship with our nearest big neighbour. In fact, Indonesia is South-East Asia's largest economy, ranking seventh in the world for purchasing power parity, and is the world's fourth-most populous nation, with a median age of just 30.7 years compared to 38.4 in Australia. And it has an annual growth rate of over five per cent. Again, if I can just turn to the treaty, I was impressed that it also includes a very practical measure to have a memorandum of understanding between the Australian government and the Indonesian sovereign wealth fund Danantara. This intention is to increase the cooperation and information sharing between Australian agencies and Indonesia's newest sovereign wealth fund, and that will also then help for two-way investment between our nations.

With over 100,000 Indonesian born people living in Australia, it's actually quite a small diaspora, but there are over 23,000 Indonesian students here, and it is a top destination for Indonesian students, particularly in higher ed and vocational studies. That said, as we heard from our previous speakers, there's much more we can be doing to ensure that that's reciprocated with Australian students embarking on studying Indonesian. Any increase in the uptake of that will be well received, I'm sure, because those cultural ties underpin the strength of our economic, political and military cooperation as well.

Importantly, the treaty reaffirms respect for sovereignty, unity and territorial integrity and a commitment to peaceful resolution of disputes and a support for a rules based regional architecture grounded in international law and ASEAN centrality. It does emphasise dialogue, transparency and responsible conduct to reduce the risk of misunderstanding and miscalculation. President Prabowo described the agreement as a reflection of the commitment of both countries to safeguard national security while making real contributions to peace and stability in the Indo-Pacific. He spoke of the principle of good neighbourliness and of two nations destined by geography to live side by side, building relations on mutual trust and good faith. That approach can stand at times in stark contrast to the way that relationship has been managed in the past, where it has been at times sporadic and reactive.

For now, we're building on three decades of defence cooperation. This represents a significant extension of that partnership. It reflects growing strategic trust and ambition between our nations. To end on President Prabowo's words, he said it well when he stated that good neighbours will help each other in times of difficulties, and I look forward to supporting the government in furthering that relationship.

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