Albanese-Prabowo can show there’s a better middle power way – Asia Times
Just one day after taking the oath of office for a second word, Asian Prime Minister Anthony Albanese flew to meet with his Indian counterpart, President Prabowo Subianto, in a dizzying move.
In prepared comment, Albanese referred to Indonesia as an “indispensable companion” and urged Prabowo to follow through on a deal reached last year to strengthen security ties.
The three areas covered by that agreement are maritime security, terrorism, and crisis response. According to Prabowo’s state, Albanese’s visit came amid reports that Russia requested a military base be located in Papua, which is located about 1,200 kilometers from Darwin, Australia’s north military center.
Coming of the Indo-Pacific is in a delicate harmony. Rising geopolitical conflicts are compelled by the Trump administration’s reshaping of the prevailing business and geo-economic orders, which are causing countries like Indonesia and Australia to rethink their strategic and economic associations.
However, communications and action plans are insufficient when taken into account the seriousness and necessity of the current issues. To create a more resilient and safe provincial architecture, the two neighbors require concrete breakthroughs to tack on a tighter bilateral knot.
There is plenty of reasons for Australia and Indonesia to collaborate more.
Indonesia is under increasing economic pressure, as evidenced by a declining GDP, a strengthening rupiah, and wild venom on the stock market, including a new single-day decline that required trading to stop. Trump’s proposed but presently halted 32 % tariffs on Indian goods have raised concerns about the economy.  ,
Australia’s economy is also impacted by trade war-induced monetary turbulence. Given the rising risk of geopolitical volatility, it’s a growing concern that its close ties with China, particularly in natural resources and manufacturing, are of growing concern. These financial ripples are being felt throughout the area, having an impact on Australia’s main trade partners, such as Japan, South Korea, and India.
The Indonesia-Australia Comprehensive Economic Partnership Agreement ( IA-CEPA ) serves as a foundation and has sparked some optimism in the business communitiess of Indonesia and Australia, but its promise is still unfulfilled.
Indonesia, which stood at US$ 550 million in 2023, continues to suffer from administrative clumps and bureaucratic red tape. To get past those obstacles, it takes bold steps to harmonize standards, form joint task forces to handle disputes, and use economic inclusion as a crutch rather than a policy checkbox.
Although local balance is essential, economic integration may be a prerequisite for it. However, over the years, Indonesia and Australia have followed various corporate axes.
Australia’s participation in AUKUS, the Quad, and Five Eye highlights its American ally, while Indonesia prioritizes its non-aligned foreign policy by placing ASEAN’s importance on the diplomacy map first.
Australia’s decision to purchase nuclear-powered boats from the US and UK under the AUKUS brand has raised questions about local stability, which highlights the proper differences between the two countries.
Russia, which has provided Indonesia with weapons over the years, felt the need to ask and perhaps obtain focusing right because of that difference.
However, despite these variations, diplomatic security cooperation has gained a lot of support. A shared commitment to local security, sea safety, and counterterrorism was demonstrated by the joint military exercise 2024 Keris Woomera.
However, trust-building requires more than occasional training. Using ASEAN platforms like the East Asia Summit and institutionalizing annual protection dialogues could transform military cooperation into proper synergy.
Energy and meal safety are two sections where Indonesia and Australia are unwaveringly interested in cooperating. Indonesia aims to transition to renewable energy resources in order to achieve net-zero pollution by 2060. The state is committed to reducing its rely on fossil fuels, despite the fact that fuel is still important to Indonesia’s business.
A major shift toward solar, wind, biofuel, geothermal, and electricity is anticipated in the 2021-2030 energy plan. However, Indonesia’s state energy firm, PLN, is working diligently to maintain financial viability and provide reliability before retiring coal-fired energy plants as planned.
Australia might play a significant role in this power change. A$ 200 million financing facility between PLN and Export Finance Australia supports renewable investments, while the Indonesia-Australian Energy Dialogue facilitates cooperation in green energy.
Expanding cooperation in the fields of mine products, technology, power storage, and green hydrogen might all contribute to Indonesia’s long-term energy resilience.
A precise thermal bridge connecting the two countries may also work. A high-voltage transfer line that runs from Australia’s Northern Territory to Java-Bali, the center of Indonesia’s people and economy, could transform both markets.
A solar connection could ultimately power thousands of Indonesian households, replacing fuel and fostering cross-border development, according to early assessments, drawing on tasks like Australia-Asia Power Link.
Bali could become a local green and electric hub powered by the Outback sunrays rather than just for vacationing Australians. This is more than just system; it is a declaration that renewables can be a shared goal, never a zero-sum game.
Another possible consolidation stage is food security. Indonesia’s efforts to secure food safety experience significant difficulties in juggling climate pledges and agricultural policies.
The president’s food house program aims to lower imports but runs the risk of deforestation and peatland degradation. In addition, biodiesel mandates ( B35 and B40 ) put additional pressure on farmland. Indonesia is working on carbon market initiatives, including meal growth, property restoration, and climate change mitigation.
Making efforts like Indonesia’s Free Nutritious Meal system crucial, vulnerable areas continue to struggle with food availability. However, its viability depends on supply chain performance, management, and infrastructure. Regional differences in the availability of food and reliance on imported grain are still significant issues.
Through initiatives like PRISMA supporting local producers, Australia contributes to Indonesia’s meal safety through trade, agricultural expense, and technology transfer.
Greater cooperation might be centered on increased water management techniques, precision farming practices, and the creation of green supply chains. For enhancing endurance, opportunities in Indonesia’s food equipment, such as cold storage infrastructure and logistics networks, are necessary.
Additionally, boosting Indonesian espresso, cacao, and exotic fruit exports to Australia along with Australia’s wheat, meat, and dairy exports to Indonesia would encourage bilateral trade growth, which may result in a more healthy and mutually beneficial trade relationship.
Indonesia’s involvement in American agribusiness, possibly through Prabowo’s recently established sovereign wealth fund, Danantara, may improve food security and lower transfer fees.
The issues transcend food and fuel. A unified Indonesia-Australia agreement would provide the Indo-Pacific with a fresh perspective on middle-power participation in a time of extremes.
A second way that prioritizes local agency is created by Jakarta’s ASEAN leadership and Canberra’s American heritage, creating a unique hybridity.
This is more of a proper necessity than a optimistic partnership, according to Prabowo and Albanese. If Indonesia-Australian joint ventures in renewable energy, crops, and food systems are pursued with fervor, they could demonstrate to the world that local resilience is built through interdependence and innovation rather than militarization or protectionism.