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Closer cooperation with Australia wise move for Indonesia

Australia and Indonesia finally signed an agreement last week on the code of conduct for intelligence operation, putting an end to the diplomatic rift caused by spying revelations last year.

Indonesian President Susilo Bambang Yudhoyono with Australian Foreign Minister Julie Bishop at a meeting in Bali on Aug 28, where both countries signed an agreement on the code of conduct for intelligence operation. Photo: AFP

Indonesian President Susilo Bambang Yudhoyono with Australian Foreign Minister Julie Bishop at a meeting in Bali on Aug 28, where both countries signed an agreement on the code of conduct for intelligence operation. Photo: AFP

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Australia and Indonesia finally signed an agreement last week on the code of conduct for intelligence operation, putting an end to the diplomatic rift caused by spying revelations last year.

While the agreement marks a welcome improvement in the bilateral relations between the two neighbours, there has regrettably been a general disposition in almost all successive Indonesian governments to overlook Australia as a partner crucial to Indonesia’s regional interests.

The Suharto government certainly made no conspicuous effort to enhance relations between the two, in complete asymmetry to what his counterpart Mr Paul Keating tried to do in the 1990s.

There were several reasons for this tepid approach, chief of which was the not entirely accurate notion that Canberra needed Jakarta more than the other way around. During the Suharto years, Indonesia was indeed a giant within the Association of South-east Asian Nations (ASEAN).

Australia was also viewed by Indonesia more as a junior partner within the unofficial alliance of English-speaking countries such as the United States, the United Kingdom, Canada and New Zealand.

It was also in those days that Mr Keating pronounced that Australia was more part of Asia than the West.

In many ways, it was difficult for Indonesian officials to formulate the right policy because of what they saw as ambiguity in Australia’s in-between status.

Jakarta also believed then that it was just as, if not more, important to the US than Canberra was.

However, hubris aside, those circumstances of the past bear little resemblance to the present. Indonesia no longer has the same standing in South-east Asia as it did then.

REMISS TO IGNORE AUSTRALIA

The lack of a coherent foreign policy since the fall of Suharto, coupled with squabbles with neighbours over borders and migrant-worker issues, means that Indonesia’s soft and hard power have undergone considerable decline within ASEAN.

Its decreasing projection of regional power is also in complete symmetry with China’s burgeoning influence throughout Asia. Beijing has also overlooked and, in some cases, bypassed ASEAN, preferring to deal with individual countries on a bilateral level rather than with the region en bloc.

China’s increasing power and confidence have also manifested themselves in its territorial disputes in the South China Sea with the Philippines, Vietnam and possibly Indonesia over the Natuna Sea.

However, even after Beijing recent showdown with Hanoi over the former’s installation of oil rigs in the South China Sea, ASEAN as a whole has failed to come up with a unified resistance against China.

It would seem that individual ASEAN states, with perhaps the exception of Vietnam and the Philippines, are reluctant to mobilise against China for fear of jeopardising their bilateral relations with Beijing. China is the biggest trade partner of Malaysia, Singapore and Thailand. So in the end, economic priorities may turn out to be a great stumbling block for ASEAN unity against China.

Thus, it is essential that Indonesia broaden its network of regional allies as a bulwark against China’s hegemony in South-east Asia. For this purpose, Australia is an ideal candidate and would definitely welcome overtures from Indonesia.

In terms of defence, both Indonesia and Australia are middle powers. Indonesia’s ground forces are larger in number. However, the Australian Armed Forces have had more combat experience than their Indonesian counterparts. Australia’s military budget is also significantly greater than Indonesia’s.

The similitude in military potency between the two countries can only be mutually beneficial as it would ensure a more or less equal partnership.

Economically, cooperation and trade between Indonesia and Australia are far from optimal. Figures released by the Australian government showed that Australia ranks 10th as an export destination for Indonesia. However, Indonesia’s export down under accounts for only 2.4 per cent of its total exports. In turn, its import figures from Australia stand at 2.7 per cent, making Australia its ninth-biggest supplier.

The administration of incoming President Joko Widodo has promised an overhaul of Indonesia’s key agricultural sector. Australia, as a major agricultural exporter, could be a valuable partner. Transfer of technology and direct investments in the sector are all possibilities that should be pursued.

Jakarta’s relationship with Canberra has not exactly been smooth sailing for the past few decades. It could and should definitely be better than it is now. The next Indonesian Foreign Minister would indeed be remiss to continue ignoring Australia as a strategic partner. THE JAKARTA GLOBE

ABOUT THE AUTHOR:

Johannes Nugroho is a writer and businessman from Surabaya.

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