Speaking alongside Indonesian President Prabowo Subianto in Sydney this afternoon, the prime minister announced that negotiations on the deal have been all but finalised.

The pact, which is expected to be formally signed in January, will significantly tighten the security relationship between the two nations.

Prime Minister Anthony Albanese welcomes Indonesian President Prabowo Subianto to Kirribilli House. Wednesday 12th November 2025.Anthony Albanese and Prabowo Subianto have agreed to a new security treaty between Australia and Indonesia. (Sitthixay Ditthavong)

“This treaty will commit Australia and Indonesia to consult at a leader and ministerial level on a regular basis on matters of security, to identify and undertake mutually beneficial security activities,” Albanese said.

“And if either or both countries’ security is threatened, to consult and consider what measures may be taken either individually or jointly, to deal with those threats.

“This is a watershed moment.”

The world’s fourth-largest country by population with some 285 million people, Indonesia has for years remained non-aligned and largely neutral even with geopolitcal tensions in the region increasing.

It has deepened ties with Western nations including Australia and inked deals to buy military equipment from the likes of France and the US, but at the same time maintained ties to Moscow.

Australian and Indonesian Army tanks take part in Super Garuda Shield multi-national military exercises in Baluran, West Java, Indonesia, Monday, Sept. 11, 2023.Australian and Indonesian tanks during military drills in 2023. (AP Photo/Tatan Syuflana)

Just last year, Indonesia held its first-ever bilateral military drills with Russia, at the same time as it was carrying out its own exercises with Australia.

Albanese said the new treaty would build on previous deals signed between Canberra and Jakarta.

“This treaty represents a major extension of our existing security and defence cooperation,” he said. 

“It shows the relationship is as strong as it has ever been, and that’s a great thing for our region and for the people of both Australia and Indonesia.”

Subianto said it was crucial for his nation to have strong regional relationships.

“In the Indonesian culture, we have a saying, when we face an emergency, it is our neighbour that will help us,” he said.

“Maybe our relatives will remain far away, but our neighbours are the closest and only good neighbours will help each other.”