In a joint declaration in 2005, Prime Minister John Howard and President SB Yudhoyono described the Australia- Indonesia relationship as “one of the most far reaching, high level interactions between two countries in the Asia- Pacific.”

The new Australia-Indonesia security agreement which came into force on 7 February 2008 symbolizes this vastly improved relationship since its lows in 1999 over Australia's intervention in East Timor (Timor-Leste). Known as the Agreement on the Framework for Security Cooperation or the Lombok treaty — first signed by the two Foreign Ministers in Lombok, Indonesia in November 2006 — it is meant to maintain the momentum in relations and to further institutionalise the security dimension.

As a framework agreement, the Lombok treaty draws together different aspects of the extensive on-going security cooperation and provides the basis for the conclusion of other arrangements whenever deemed necessary by both parties. Apart from building defence relations, the treaty emphasises cooperation in non-traditional security, principally in relation to terrorism and transnational crime. Other areas covered include maritime security, a priority concern for Australia, and nuclear cooperation for peaceful purposes and for nuclear non-proliferation.

What has brought about this sea-change in Australia-Indonesia relations in recent years?

One crucial catalyst was the emergence of a common terrorist threat from Islamic radicals after 9/11 which forged a closer partnership between the police forces, immigration officials and security and intelligence services. Australia has assisted Indonesia significantly in counter-terrorism, including in post-bombing investigations and capacity building in a broad range of areas.

The other important catalyst has been the changing geopolitical landscape in Asia because of the rising powers, especially China, which have been actively seeking to expand their influence. Indonesia wants to maintain its strategic autonomy in the face of the new challenges and it suits the interests of Australia and the West to assist it to do so and to strengthen their own links with Jakarta. Although the Suharto era is gone, the present ruling circles in Jakarta are adhering to the long standing foreign policy of active independence and non-alignment, with a measure of quiet tilt towards the West. In the strategic geography of Asia, Australia remains a fulcrum of the Western strategic/military interests, even as it seeks to pursue its own economic and security interests.