Australia and Indonesia pledge to strengthen strategic ties within the Indian and Pacific Oceans, in a move seen as an indication of growing concerns about China’militarization of the South China Sea.
The joint declaration, issued after a gathering between Prime Minister Scott Morrison and Indonesian President Joko Widodo, doesn’t make any specific reference to China but includes several mentions of concerns concerning the “rules-based regional architecture.”
The elevation of the India-Australia security relationship to a Comprehensive Strategic Partnership was formalised by Mr Widodo and Mr Morrison at a signing ceremony on the Presidential Palace in Bogor.
ABC The Joint Declaration speaks of “threats of conflict” and “changes and challenges” within the “dynamic region” that divides the 2 countries.
Free trade agreement reached after eight years
The two leaders concluded their meeting to announce a free trade agreement that was eight years within the making.
According to Jakarta PostMinistry of Foreign Affairs’East Asia and Pacific Affairs Director Edi Yusup earlier said Jokowi’s meeting with Morrison would likely result in the finalization of two partnerships: the Indonesia-Australia Comprehensive Economic Partnership Free Trade Agreement (IA-CEPA) and the Strategic Comprehensive Partnership.
Jokowi and Morrison are also expected to witness the signing of three memoranda of understanding on transport, the creative economy and cybersecurity.
Although Indonesia is the biggest economy in Southeast Asia and Australia the thirteenth largest economy on this planet, their trade relations are limited and neither side views the opposite as a top partner.
Boosting exports, including by ensuring market access for Indonesian products through free trade agreements (FTAs), is one other priority for the Widodo government because it seeks to limit the depreciation of the Indonesian rupiah.
Australia was the 14th largest buyer of Indonesian exports in 2017, while Indonesia is Australia’s thirteenth largest trading partner, and bilateral trade between Australia and the US in 2016–17 was valued at A$16.4 billion (US$12 billion). Borneo Post reports.
