Deakin Speaking

Australia’s relationship with Indonesia is continuing at its all-time high following the conclusion of the East Asia Summit in Bali. Prime Minister Julia Gillard has come away from the summit confirming a major reduction in tariffs in trade with Indonesia, providing further "ballast" to the once-troubled relationship.

Even Australia’s agreement to host US Marines in the Northern Territory has caused fewer problems than sometimes insecure strategic commentators in Jakarta might have indicated in the days immediately after the plan was announced. Having said that, it is unlikely that Australia will take up President Susilo Bambang Yudhoyono’s suggestion that Australia also play host to China’s military, by way of balancing assertions of regional power.