Closer ties with Indonesia benefit both nations
Predicted to become the world’s fourth-largest economy, Indonesia is ascendant as a regional power. It is president of the G20 this year for the first time and next year will chair the Association of Southeast Asian Nations. Indonesia is Australia’s 12th largest trading partner, though it will rise up the ranks in coming years.
Too often Australia’s regional role is seen through the lens of superpowers – our trade with China and our alliance with the US. A closer relationship with our most important neighbour, Indonesia, will provide a ballast against Chinese ambitions to expand influence in the region, and a productive dialogue between the two largest coal exporters will prove invaluable as the world navigates the transition to a carbon-free economy.
There are many ways Australia can deepen our relationship with Indonesia, delivering reciprocal and much-needed benefits to a country that still faces considerable challenges. Australia’s per capita gross domestic product is roughly 14 times larger than Indonesia’s.
The first way is on climate change. Decarbonisation is coming. Countries will stop buying Australia’s and Indonesia’s coal. Both countries need to plan for this transition, diversify their exports and invest in green energy. There is much Australia can do to help Indonesia to decarbonise, including through greater investment and sharing of expertise. But we need to walk the talk.
Last year Australia and Indonesia agreed to a raft of measures to enhance co-operation on climate and energy transition. We should implement some of these measures before the G20 summit in October-November and show the world that coal exporters can take meaningful action.
Leaders representing 65 per cent of the world’s population and 80 per cent of global GDP will meet at the G20 summit in Bali. This provides the ideal platform for our countries to deliver practical action on decarbonisation.
One example to build on: Australia this week received the first imports of Indonesian-made vehicles. Australian intellectual property and Indonesian manufacturing capabilities could combine to export the next generation of clean technology across Asia.
The second avenue for collaboration is on forced migration. Australia and Indonesia co-chair the Bali Process, the main multilateral forum for co-operation on irregular migration. This year is the 20th anniversary of the Bali Process, which will be marked by a ministerial meeting in Bali. This is an opportunity to work together to reform the process into a platform for broadbased regional co-operation. The Bali Declaration agreed in 2016 voiced hopes for reform that would match the growing scale and complexity of irregular migration challenges. This year we can start delivering on those hopes.
With crises in Myanmar and Afghanistan driving mass movement of displaced people, circumstances demand a Bali Process with clear strategy and strong leadership, supported by technical capability and frequent informal meetings that allow agile regional responses to rapidly developing situations. One action Australia and Indonesia could take is to trigger the Bali Process Consultation Mechanism, which would allow them to conduct visits to Myanmar or Afghanistan to agree concrete measures to reduce displacement.
In addition to institutional reform, there is much Australia can do at a local level in Indonesia.
Having returned to Australia after almost 20 years living and working abroad, I have witnessed Australia’s reputation diminish on the global stage significantly. One reason is our treatment of asylum-seekers and refugees. The Taliban takeover in Afghanistan provides an opportunity to turn our policy around. The Centre for Policy Development has called on the federal government to accept 20,000 Afghan refugees. As part of this initiative we could, and should, take some of the thousands of stranded Afghan refugees in Indonesia.
The third area for collaboration is on Myanmar, which remains the gravest crisis in Southeast Asia. ASEAN foreign ministers met this week and Myanmar was at the top of their agenda. The continued crimes against humanity perpetrated by the Myanmar junta and its ongoing persecution of Rohingya demand a stronger response from Australia and Indonesia. Both countries share the desire to resolve the crisis. This year they should agree on a co-ordinated approach to apply more pressure to the junta and ASEAN to implement the agreed ASEAN five-point consensus for Myanmar.
As de facto ASEAN headquarters, Jakarta has a pivotal role co-ordinating the regional response to the conflict in Myanmar. The five-point consensus includes facilitating a cessation of violence and constructive dialogue between all political parties.
The dividends of a closer, more collaborative relationship with Indonesia are significant. This relationship is Australia’s path to a respected, influential and collaborative leadership role in the Indo-Pacific region.
Andrew Hudson is international director at the Centre for Policy Development in Melbourne, a John Monash Scholar and a board member of Australian Progress.
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Josh Frydenberg’s decision, on the cusp of an election campaign, to attend the G20 finance ministers meeting in Indonesia this week – when virtual attendance was an option – is an encouraging sign Australia’s political establishment is prioritising relations with our northern neighbour.