Indonesia and Australia finalize new bilateral defense agreement

Indonesia and Australia on Tuesday finalized a new bilateral defense treaty that will enhance the neighboring nations' ability to operate their militaries in each other's territory.

The agreement was reached as Indonesian president-elect Prabowo Subianto, who also serves as defense minister, met with Australian officials at the country's Parliament earlier Tuesday.

The bilateral relationship is becoming increasingly important to Australians in face of growing tensions with China. New Australian prime ministers typically make Jakarta one of their first overseas destinations.

The pact will be signed within days, when Australian Defense Minister Richard Marles visits Jakarta.

Marles said the successful conclusion of negotiations after two years was significant for both countries' national security.

"What this agreement will do is provide for much greater interoperability between our defense forces, it will provide for much more exercises between our defense forces, it will see us working together the global commons to support the rules-based order and, importantly, it will allow us to operate from each other's countries," Marles told reporters.

"And in that sense, this agreement will be the deepest, the most significant agreement that our two countries have ever made," Marles added.

Subianto described the agreement as "ironing out some legalistic details" and said that it achieved "great progress" in the two countries' defense cooperation.

Euan Graham, an analyst at the Australian Strategic Policy Institute think tank, questioned the pact's strategic value to Australia.

Subianto made clear that Indonesia would remain non-aligned under his leadership, Graham said. This means Indonesia will remain among a group of countries that don't want to be officially aligned with or against any major power bloc such as the United States.

"The issue is that Indonesia doesn't share the same threat perception as Australia towards China," he added.