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.