In 2020, Russia and Indonesia will mark 70 years to the establishment of diplomatic relations between the two countries. Given that the epicenter of the geopolitical activity is currently shifting towards the Asia-Pacific Region (APR), the role of Indonesia as the planet’s strategically important location increases.
Along with Russia, there are a number of other countries that are as keen on developing ties with Indonesia. One of them is Australia, which is particularly active due to its geographical location.
Indonesia and Australia boast a comprehensive bilateral strategic partnership agreement, which defines them as “strategic anchors of the Indo-Pacific Region”. According to tradition, each newly elected Australian Prime Minister pays his first foreign visit to Indonesia. Prime Minister Scott Morrison, who took office on August 24, 2018, kept the tradition as well.
In Jakarta, Morrison met with Indonesian partners to discuss the details of a strategic cooperation agreement, which envisages economic cooperation, security measures, exploitation of marine resources, ensuring stability in the Indo-Pacific Region and social projects.
According to the Jakarta Maritime Policy Strategy (Global Maritime Fulcrum), Indonesia is regarded as the fulcrum between the Indian and the Pacific. Canberra also sees Jakarta as key to Australia’s defense strategy.
Indonesia’s territory embraces most of the archipelagoes north of Australia and these make a convenient springboard for a hypothetical threat to the Australian coast. In addition, Indonesia stands at the junction of marine and air routes from Australia to Europe and from Australia to Asia-Pacific countries. Joint naval exercises run by the Indonesian and Australian defense ministries account for 24% of the total, while 33% of the drills are held by the Air Forces, 30% by special services and special task forces, and 2% by the peacekeeping contingents.
Australia became the third country with which Jakarta signed a comprehensive strategic cooperation agreement after the United States (2013) and China (2015). In 2017, the two parties signed the Joint Declaration on Maritime Cooperation, in 2018 – the Maritime Cooperation Action Plan, covering 85 areas with the participation of 17 Australian and 20 Indonesian departments and agencies.
Australia finds Indonesia more important than Indonesia finds Australia. As a single continent, Australia attaches particular importance to foreign policy with a view to ensure its national security. As for Indonesia, it has a more introverted policy. Being the largest island nation on the planet, Jakarta aims to guarantee its security through internal consolidation of the many islands that make up the Indonesian state.
Pursuing the policy of “non-alignment”, Indonesia seeks to diversify foreign economic and foreign policy relations. This becomes clear from the previous development of the Indonesian-Australian relations: Jakarta would quickly freeze projects with Canberra once it spotted a disproportionate presence of Australia in Indonesian politics.
That was the case in 1999 when Jakarta withdrew from the Security Agreement, signed in 1995, in 2013 when it suspended defense cooperation and cooperation between special services, and 2016 when it suspended the language training of military personnel.
For Indonesia, a multi-vector foreign policy is crucial for maintaining a healthy balance of power in the region. For this reason, Moscow is an attractive economic partner for Jakarta. That Russian-Indonesian contacts have been developing at fast pace can be concluded from the fact that there have been several meetings between the two countries’ presidents, that Russia has been supplying Indonesia with weapons, that the two countries’ armed forces have held joint exercises, that Indonesian representatives have participated in business forums in Russia and that the Russian capital has revealed in interest in Indonesia’s projects in the mining industry.
Jakarta and Moscow are considering prospects for the introduction of a free trade zone in Indonesia and the EEU. Indonesia is also ready to join the Chinese global infrastructure project “One Belt, One Road.”
Under the project, Chinese investments in the Indonesian transport infrastructure amount to $ 6 billion, which is clearly not enough for a rapid growth of transit of commodities and haulages from China and the Asia-Pacific countries through Indonesia. Indonesia’s medium-term economic development plan stipulates local financing at 63% (4). The rest should come from foreign investors, which could include Russia.
First published in our partner International Affairs