Jakarta-Canberra Security Deal, Institutionalizing Strategic Alignment

The landmark security treaty signed by Prabowo Subianto and Anthony Albanese marks a strategic shift in Indonesia’s diplomacy toward a more engaged Indo-Pacific posture. The legally binding pact strengthens maritime sovereignty, enhances legal certainty, and protects critical infrastructure while reinforcing regional stability. It also reduces investment risk, supports downstream industrialization, and deepens supply chain integration, including EV battery cooperation. By inviting Australia to the Ocean Impact Summit in Bali, Indonesia signals its intent to align security and economic priorities, positioning itself as a key stabilizing force in the region.

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Economic Survey of Singapore 2025