RI, Australia bolster defense, economic ties

RI, Australia bolster defense, economic ties

Rendi A. Witular, Canberra

After six years of twists and turns in bilateral ties between
Indonesia and Australia, the two countries have embarked on a
"new era" of enhanced defense and economic cooperation.

Led by President Susilo Bambang Yudhoyono, Indonesia has
acknowledged the need to pay more attention to its southern
neighbors -- Australia and New Zealand -- while at the same time
maintaining the strong ties it has with its peers in Southeast
Asia and East Asia.

In the past, Indonesia's foreign policy for regional bilateral
relations was focused on the importance of building union among
Southeast Asian countries and non-allies of the United States.

President Susilo's visit to Australia was seen as an important
step in bolstering the new relationship, which was marked with
the issuance of a joint declaration on a "comprehensive
partnership".

The partnership will provide a broad legal framework for
directing the future relationship of Indonesia and Australia,
covering arrangements in the field of defense and security,
economics, as well as socio-cultural affairs.

"The partnership is a legal umbrella to make the relations of
the two countries closer. It also shows that both countries are
serious about mending their relationship -- with Indonesia now
paying more attention to Australia than ever," said analyst Dewi
Fortuna Anwar of the Indonesian Institute of Sciences (LIPI).

Dewi said although President Susilo had not been keen on a
formal security arrangement with Australia -- primarily due to
his adoption of a "free and active" international relationship
policy -- military and defense cooperation would be enhanced
through the partnership.

The partnership would expand and formalize existing
cooperation between the two countries in the areas of military
training and study exchanges, as well as working to improve
communications with the aim of settling defense issues
peacefully.

Minister of Foreign Affairs Hassan Wirayuda said the focus of
the defense cooperation would be more on preventing
misunderstandings between the two countries over a number of
defense issues -- such as on the installment of long-range
ballistic missile facilities.

"Basically, under the partnership, the two countries agreed to
settle any defense problems peacefully and to avoid making any
defense policy that would cause misunderstanding or provoke
tension," said Hassan.

The military ties between Indonesia -- the world's most
populous Muslim country -- and Australia have been characterized
for the most part by ups and downs, rather than the stable,
friendly, and cooperative long-term relationship ideally enjoyed
by close neighbors.

Australia's role in the East Timorese independence movement
poisoned the two countries' friendship. And, in 1999, shortly
after the majority of the East Timorese voted for independence,
Indonesia annulled a security pact signed by both parties in
December 1995.

Terrorism became another major issue for the two countries,
more so after the Sept. 11, 2001 terrorist attacks, and the Bali
bombings the following year, in which 202 people were killed,
many of whom were Australians. Last year a bomb attack was
carried out on the Australian Embassy in Jakarta.

While both countries are committed to fighting terrorism, the
views expressed by Australian leaders on terrorism in Indonesia
have often been coolly received by Indonesians.

However, a sense of kinship was felt when Australia played a
leading role in rushing aid to Indonesia following the Dec. 26
earthquake and tsunamis that claimed over 240,000 lives.
Australia has pledged some A$1 billion in aid for reconstructing
the devastated areas.

Meanwhile, in the economic sector, the partnership is expected
to initiate the arrangement of a free trade agreement (FTA) as
well as easing the flow of people between the two countries for
business, tourism and education activities.

Although Indonesia is geographically close to Australia,
economic activities between the two countries remain
insignificant with Indonesia ranked as Australia's 16th largest
trading partner with bilateral trade worth some A$8 billion
(US$6.5 billion) last year.

Indonesia, Southeast Asia's largest economy, has lagged behind
Singapore, Malaysia and Thailand in initiating FTA talks with
Australia, as well as with New Zealand, due in part to the
unclear, uncoordinated trade and industry policies of previous
governments.

The economic cooperation with Australia -- the sixth largest
economy among the developed nations grouped in the Organization
for Economic Cooperation and Development (OECD) -- is also seen
as Indonesia's decision to divide its economic concentration from
Japan, South Korea, China and Southeast Asian countries.

The writer is a journalist with The Jakarta Post.