This report analyses Australia and Indonesia's defence and wider security partnership. It identifies several areas where the countries should productively concentrate their efforts in the coming years, particularly to counter the rise of hybrid threats.

The 2024 Australia–Indonesia Defence Cooperation Agreement (DCA) is best understood as a continuation of, rather than an acceleration in, the strategic relationship. But it provides Australia with useful avenues to expand its defence relationship with Jakarta, at a time when Indonesia finds itself courted by other countries that don’t share Australia’s security interests. Ultimately, the DCA reflects Canberra’s long-term investment in a defence partnership that can address evolving regional security challenges. From disaster response and maritime patrols to multilateral peacekeeping, the agreement lays the groundwork for a future in which the two countries’ armed forces can operate together effectively.

Continued engagement should centre on expanding military training programs, enhancing operational coordination, and exploring new areas of cooperation, especially to counter hybrid threats. The DCA’s future success will depend on the ability of both sides to manage their differing aspirations, motivations and strategic outlooks in a rapidly deteriorating global security environment.

Key recommendations

• Establish a Track 1.5 mechanism to facilitate mutual understanding of hybrid threats and the broader strategic environment.
• Create a joint hybrid threat taskforce.
• Establishing new exercises or incorporate scenarios into existing joint exercises.
• Extending defence cooperation to include the Philippines, with a particular focus on the maritime domain.

The report is accompanied by a webinar.