At a time of unprecedented good bilateral relations with Indonesia, Australia is now looking to its future. Indonesia’s shift towards a more open democratic framework has allowed the previously troubled relationship to stabilise, but its future remains uncertain, especially over the medium to longer term.
The renewed focus on relations with Indonesia reflects its continuing critical value to Australian foreign policy. It is Australia’s largest near neighbour, the world’s largest Muslim country, a major regional diplomatic actor, the key transit point for Australian trade, travel and irregular migration and, again, a growing economic partner.
Australia policy thinkers are therefore looking at options for the longer term relationship. Among those considerations is increasing bilateral strategic engagement. More than any other aspect of the relationship, this is likely to generate controversy both within Australia and in Indonesia.