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Australia and Indonesia: How Small Differences Add Up

“it it true that "Between Australia and Indonesia lots of things are different and because of all the small things that change the whole country and its outcome."”
Generally true
Confidence: High Checked on April 15, 2026

Summary

Australia and Indonesia differ markedly in geography, population size, economic structure, political systems, and cultural practices. These differences shape their bilateral trade, security cooperation, and diplomatic interactions, leading to distinct outcomes for each country. The relationship is characterized by both cooperation and occasional tension, reflecting how even relatively small policy or cultural variations can have significant effects.

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Sources 60 searched

indonesia.embassy.gov.au
  • Australia and Indonesia

    But the actual dollar figures - $17.6 billion dollars last year in trade, and just less than $6 billion in Australian investment in Indonesia – speak for themselves. Relative to our other trade and investment relationships, those figures are small. As the two largest economies in Southeast Asia, next to each other, both G20 economies and now strategic partners, we need to do much better. IA-CEPA is a very good agreement for both of us and once in force, can be a genuine catalyst for new economic opportunities. This will require a lot of advocacy by government and business and will have to reflect genuine implementation of the agreement and demonstrated business success stories in order to encourage other businesses to engage in each other’s markets.

  • Years of living prosperously – economic diplomacy between Indonesia and Australia

    As a result, in 2015, Indonesia is a vital trade partner with Australia (worth $16 billion in two way trade), and also a vital education partner. In fact, in the greater scheme of things, Indonesia is a much underrated economic partner.

  • Australia-Indonesia relationship

    Australia- Indonesia relationship · The AII was established by the Australian Government in 1989 to contribute to a more broadly based and enduring relationship between Australia and Indonesia and to project positive images of Australia and Indonesia in each other\'s country. (more info...)

dfat.gov.au
factcheck.afp.com
bbc.com
en.wikipedia.org
  • Australia–Indonesia relations - Wikipedia

    Gough Whitlam made assurances that Australia would not intervene in the conflict, and encouraged Indonesian action to take over East Timor in 1975 on the basis of concerns over the left-leaning Fretilin movement. Subsequent killings and famine eliminated one-third, or 200,000, of the territory's population. The new Australian Prime Minister Malcolm Fraser met Suharto in October 1976, offering de facto recognition of the Indonesian annexation of East Timor, which was followed by Australia's de jure recognition in 1979, the only foreign government to afford complete recognition of the incorporation.

lowyinstitute.org
asiasociety.org

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