The AUKUS fallout has not prevented positive momentum in Australia’s relations with South-East Asia, yet regional concerns still lurk below the surface, and Canberra needs to strike a careful balance.
Australia’s diplomats in Jakarta and Kuala Lumpur could be forgiven for feeling a little nervous ahead of the looming announcement about the AUKUS “optimal pathway” for operating Australia’s fleet of nuclear-powered submarines.
Ties with both Indonesia and Malaysia have been tracking well under the Albanese government. But when AUKUS was first announced in September 2021, neither country was happy. Both worried about the potential for AUKUS to contribute to a regional “arms race”, and about nuclear proliferation risks.
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Susannah Patton is director, Southeast Asia Program and project lead, Asia Power Index at the Lowy Institute.
