Australia-Indonesia Leaders Hold Annual Meeting

1. The Prime Minister of Australia, The Honourable Anthony Albanese MP, welcomed the President of the Republic of Indonesia, His Excellency Joko Widodo, to Sydney for the Australia-Indonesia Annual Leaders' Meeting on 4 July 2023, on the eve of the third anniversary of the entry into force of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), and during the 70th anniversary of Australia's scholarships for Indonesian students.
2. Leaders welcomed deepening links between Australia and Indonesia towards ensuring stability and prosperity in the Indo-Pacific region, and substantial progress advancing the Australia-Indonesia Comprehensive Strategic Partnership (CSP).
3. Leaders reaffirmed their commitment to ASEAN centrality and the importance of an inclusive ASEAN-led architecture for regional peace, stability, and prosperity. Prime Minister Albanese conveyed his congratulations to Indonesia for its success to date as ASEAN Chair, and reiterated his support for Indonesia's priorities as Chair in delivering tangible economic and social benefit to ASEAN nations.
4. Leaders underscored the value of cooperation and dialogue to build strategic trust between nations. Leaders reiterated their commitment to shaping a region where sovereignty and territorial integrity is respected and where all countries benefit from regional stability. Leaders agreed that each country must contribute to the common effort to attain an open, stable and prosperous region.

Enhancing Our Economic and Development Partnership

5. Leaders emphasised that Indonesia and Australia shared vital interests in ensuring free, fair and open markets and safeguarding the international rules-based order in support of a resilient, inclusive and sustainable global economy. Indonesia and Australia agreed to intensify cooperation in response to heightening geopolitical uncertainties and structural changes in the global economy.
6. Leaders reaffirmed the importance of the multilateral trading system, with the WTO at its core, and reaffirmed their commitment to engaging in active and constructive discussions, focused on improving WTO functions and having a fully functioning dispute settlement mechanism by 2024.
7. Leaders welcomed bilateral cooperation in regional trade agreements. Leaders looked forward to the signing of the 2nd Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) in a timely manner. Leaders recognised Australia and Indonesia's efforts to advance implementation objectives as Co-Chairs of the Regional Comprehensive Economic Partnership Agreement (RCEP) Joint Committee. Leaders emphasised the importance of close collaboration in the G20, APEC and the Indo-Pacific Economic Framework for Prosperity. Leaders noted Australia's strong support for Indonesia's aspiration to be a full member of the Financial Action Task Force.
8. Indonesia and Australia are committed to working together to ensure a just and orderly transition to net-zero emissions, recognising the need to empower people and communities during this transformation.
9. Leaders agreed to deepen cooperation on reducing emissions and promoting clean energy systems and industries to accelerate the net zero transition. Leaders announced $50 million to establish a fund, under the AU$200 million Australia-Indonesia Climate and Infrastructure Partnership launched by Leaders in June 2022, to unlock investment into climate and clean energy-focused Indonesian small and medium-sized enterprises. The fund will increase the availability of clean energy technologies to help safeguard regional energy resilience and security. Leaders acknowledged the role of emissions reduction technologies, including projects in Carbon Capture and Storage (CCS), to support these efforts.
10. Leaders acknowledged Indonesia's efforts to develop an electric vehicle production ecosystem. Leaders directed officials to advance cooperation and collaboration on this vital matter. Leaders welcomed growing cooperation between the Western Australian Government and the Indonesian Chamber of Commerce and Industry (KADIN) in this area. Leaders also noted the potential for Australia and ASEAN to explore ways to enhance cooperation throughout the clean energy transition.
11. Leaders welcomed the intention of Export Finance Australia and PT Perusahaan Listrik Negara (PLN) to establish a US$200 million capital financing facility to support Indonesia's energy transition. This facility will support Indonesia's transition to net zero by 2060 by financing improvements to reduce emissions in energy generation, distribution and transmission.
12. Leaders recognised solid progress to deepening trade and investment ties under IA-CEPA and reaffirmed the commitment to implement the Agreement in full. Leaders noted the important work of the Katalis Economic Cooperation Program, which is maximising the mutual benefits of IA-CEPA.
13. Leaders welcomed the growth in two-way investment in minerals and mineral processing, Indonesia's contribution to expanding LNG processing in Western Australia and its investments in the Pilbara and associated exports of Australian industrial salt to Indonesia.
14. Leaders welcomed progress under Australia's support package for Indonesia's new capital, Nusantara, as announced by Leaders in June 2022, and welcomed the emerging cooperation between Australia's National Capital Authority and Indonesia's Nusantara National Capital Authority, drawing on Australia's experience in developing its planned capital, Canberra, and expertise in clean and green city planning. They announced an Australia Awards Indonesia Nusantara scholarships package for study and knowledge exchange in fields relevant to the development of the new capital. President Joko Widodo encouraged private sectors to invest in Indonesia's new capital, Nusantara.
15. Leaders welcomed support to Indonesia's health reform agenda as a founding partner in the new World Bank Health Transformation Multi-Donor Trust Fund and through bilateral development partnership programs. Leaders also recognised growing economic partnerships in the health sector, as evidenced by the recent joint venture between Australia's Aspen Medical and Indonesia's PT Jasa Sarana, which commenced construction of their first hospital site in Depok.
16. Leaders welcomed the extension of the Australia-Indonesia Partnership for Economic Development (Prospera) to 2026. This builds on over 20 years of Australian cooperation by contributing to expanding markets and creating jobs, safeguarding economic and financial stability, and supporting public policy and governance. The initiative supports Indonesia's strong, sustainable and inclusive economic growth.
17. Looking forward, Leaders noted both economies share a common interest in boosting productivity and international competitiveness of critical industries, which are fundamental for achieving inclusive and sustainable growth and resilience, as well as for securing continued rising incomes. To this end, new ways of working could be examined to elevate and intensify cooperation between institutions, bureaucracies and markets for economic efficiency and integration, as well as to ensure the region is not left behind.

Connecting People

18. Leaders highlighted that enhancing people-to-people ties are vital for driving economic integration and innovation and reaffirmed commitment to streamlining mobility to drive business, education, and socio-cultural cooperation.
19. President Widodo welcomed new visa offerings for Indonesia in support of our expanding business and commercial links, including immediate extended visa validity for business travellers and prioritisation of work to expand Australian SmartGates access to Indonesian e-passport holders. Subject to necessary technical arrangements being put in place, Prime Minister Albanese also advised that Indonesians would have access to the Frequent Traveller Stream visa which provides for a 10 year visa validity.
20. Leaders welcomed the significant uptake of Australia's Work and Holiday visa scheme among Indonesian travellers, and welcomed the ongoing discussions to expand the Skills Development Exchange under IA-CEPA, which will provide 1,500 placements over five years for Australian and Indonesian workers to develop their professional and intercultural skills through exchanges of up to 12 months. Exchanges will be enabled in agri-businesses, creative sectors, tourism and travel, and the green economy, as well as financial, insurance, mining engineering, information media and telecommunications sectors.
21. Leaders also welcomed the signing of the Agreement for Mutual Recognition of Engineers between the Institution of Engineers Indonesia and Engineers Australia. Leaders envisioned this signing serving as a stepping stone for the development of similar agreements for other professions in the future.
22. Leaders welcomed the return of two-way travel among Australian and Indonesian visitors to pre-pandemic levels and agreed aviation officials would discuss updates to our bilateral air services agreement to enable continued growth in demand for air services between Australia and Indonesia.
23. Leaders encouraged greater education cooperation through the intent to establish a Western Sydney University campus in Surabaya and the joint Deakin-Lancaster University campus in Bandung, noting the long history of educational ties between Australia and Indonesia. Leaders also noted the intent of Central Queensland University to establish a campus in Balikpapan and expand into Indonesia's new capital, Nusantara, to support its sustainable development.
24. Leaders welcomed new collaboration between Australia Awards Indonesia and the Indonesia Endowment Fund for Education (LPDP), Ministry of Finance of the Republic of Indonesia, to enhance and expand scholarship opportunities for Indonesian students studying in Australia.
25. Leaders committed to strengthening Indonesian teaching and learning in Australia by announcing the return of the Indonesian Language Learning Ambassadors (ILLA) program, which will place Indonesian Australia Awards scholars into Australian primary and secondary schools, as well as into a new university pilot program to support Indonesian language and culture learning.
26. Leaders welcomed the ongoing discussion between Indonesia's National Research and Innovation Agency (BRIN) and the Australian Centre for International Agricultural Research (ACIAR) to strengthen research and innovation cooperation. Leaders welcomed increased links between Australian and Indonesian research institutions through the Australia-Indonesia Knowledge Partnerships Platform (KONEKSI, $50 million). KONEKSI will sponsor our institutions to develop joint research solutions to social, economic and technical policy problems.

Securing Our and the Region's Shared Interests

27. Leaders underlined the importance of an open, stable and prosperous region, where collaboration is strong, where competition is managed responsibly, where sovereignty and territorial integrity is respected, and where countries can exercise their agency free from coercion. Leaders reaffirmed the importance of working together to promote peace and stability across the Indo-Pacific region, reiterated their opposition to any unilateral changes to the status quo, and emphasised the importance of diplomacy to avoid the risks of miscalculation.

28. Leaders highlighted the strength of the Australia-Indonesia defence and security relationship and welcomed progress towards developing a Defence Cooperation Agreement, demonstrating Australia and Indonesia's commitment to work together to contribute to regional security and stability. Leaders reiterated their commitment to continued cooperation to counter transnational crime, trafficking in persons and people smuggling, terrorism, and violent extremism in our region.

29. Leaders noted with deep concern the worsening crisis in Myanmar, and called on the Myanmar military to cease violence, engage in dialogue, and allow unimpeded access for humanitarian assistance. Leaders urged the Myanmar military to engage meaningfully with ASEAN to urgently implement the ASEAN Five Point Consensus.

30. Leaders discussed the deeply concerning war raging in Ukraine. They strongly deplored the aggression by the Russian Federation against Ukraine. They continued to reaffirm their respect for sovereignty, political independence, and territorial integrity, and reiterated their call for compliance with the UN Charter and international law. Leaders also denounced the prolonged war and stressed it is causing immense human suffering and exacerbating existing fragilities in the global economy - constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risks. They also urged all parties to work towards a peaceful resolution through diplomacy.

Contributing to Indo-Pacific Stability and Prosperity

31. Leaders reiterated their commitment to the principles underpinning the ASEAN Outlook on the Indo-Pacific (AOIP), as outlined in the November 2022 ASEAN-Australia Joint Statement on Cooperation on the AOIP. Leaders highlighted that openness, inclusiveness, transparency and respect for international law, rules and norms form the foundation of a region where we can advance our shared interests, and where each country can pursue its own aspirations and prosperity while remaining committed to maintaining peace and stability in the region, including through the existing ASEAN-led mechanisms. Leaders looked forward to the finalised documents of Secretariat-to-Secretariat cooperation between ASEAN and the Indian Ocean Rim Association (IORA) and between ASEAN and the Pacific Islands Forum (PIF), as concrete implementation of the AOIP. Leaders welcomed the Quad's support for ASEAN centrality and the ASEAN Outlook on the Indo-Pacific.
32. Leaders highlighted their ambition for a world without nuclear weapons and their commitment to strengthening the global nuclear non-proliferation and disarmament regime, including its cornerstone, the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Australia and Indonesia were founding members of the International Atomic Energy Agency (IAEA) and remain steadfast supporters of its vital role and mandate in upholding the NPT. Leaders welcomed cooperation in the context of the Asia-Pacific Safeguards Network to build practical safeguards capabilities in the region.
33. Leaders discussed the vital importance of deepening regional economic integration, particularly through strengthening cross-border trade and investment in Southeast Asia. Leaders welcomed Indonesia's priority economic deliverables as Chair of ASEAN in 2023, including developing regional economic corridors and strengthening connectivity and seamless logistics for enabling international commerce. Leaders looked forward to discussing ASEAN as An Epicentrum of Growth at the 43rd ASEAN Summit in September 2023 and considering practical actions to future-proof the ASEAN Economic Community.
34. Leaders noted progress in implementing the ASEAN-Australia Comprehensive Strategic Partnership, including through the Australia for ASEAN Futures Initiative, practical projects in line with the ASEAN Leaders' Declaration on Mainstreaming Four Priority Areas of the AOIP Within ASEAN-led Mechanisms, and the ASEAN-Indo-Pacific Forum: Implementation of the AOIP. Leaders looked forward to the Special Summit to commemorate the 50th Anniversary of ASEAN-Australia Dialogue Relations, to be held in Australia from 4-6 March 2024.
35. Leaders reaffirmed their commitment to positive cooperation between Australia and Indonesia to support the priorities of Pacific island countries, under the Australia-Indonesia MOU on Trilateral Cooperation with the Pacific, including the UN Global Pulse Lab - Asia Pacific. Recognising Indonesia's status as a Forum Dialogue Partner, Leaders reaffirmed their commitment to broad-based engagement with the region and the centrality of the Pacific Islands Forum (PIF) and the importance of coordinating efforts to respond to the Pacific's priorities for a peaceful, prosperous and resilient region.

Maritime Cooperation

36. Leaders recalled their nations' unique bond as neighbours at the maritime crossroads of the Indian and Pacific Oceans, and the shared challenge of managing expansive maritime jurisdictions. Leaders reaffirmed their commitment to strengthen cooperation in maritime security and marine resource management.
37. Leaders reaffirmed their shared commitment to maintaining and promoting security and stability in the South China Sea and underscored their strong support for freedom of navigation and overflight and unimpeded trade, and emphasised the need for the peaceful resolution of disputes in accordance with international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS).

A Stronger Strategic Partnership

38. Leaders welcomed momentum in two-way high-level visits over the past year. Leaders noted the Special Envoy for Southeast Asia's visit to Indonesia in February and looked forward to the release of Australia's Southeast Asia Economic Strategy to 2040. Leaders also welcomed the increased tempo of two-way trade and investment-related visits.
39. Leaders asked Foreign Ministers to renew the Plan of Action for the Indonesia-Australia Comprehensive Strategic Partnership (2020-2024).
40. President Joko Widodo expressed his sincere gratitude to Prime Minister Anthony Albanese and the Australian Government for the warm welcome and hospitality accorded to him and the Indonesian delegation during the State Visit.