Indonesia will take a big step on the global stage this year - are Australians paying enough attention?
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20/02/2022, 08:50 Indonesia will take a big step on the global stage this year – are Australians paying enough attention?
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Tracey Nearmy/AP
Indonesia will take a big step on the
global stage this year – are Australians
paying enough attention?
Ian Kemish, The University of Queensland
January 20, 2022 10.49am AEDT
Many Australians are probably unaware that neighbouring Indonesia
has assumed the G20 presidency and will host the crucial meeting of
the world’s largest economies for the first time in October.
The theme for the summit in Bali will be “Recover Together, Recover
Stronger”. We can all hope this will more closely match global realities
by then.
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Indonesia is well-positioned to ensure the world focuses on the gap in
the global pandemic response between developed and lower-income
countries, which threatens to prolong the crisis. Its overall growth
trajectory has earned it international respect, and it has made solid
efforts to combat extremism and maintain a vibrant democracy at
home.
Jakarta has also showed diplomatic skill on the international stage, for
example, in mustering ASEAN support for the Regional
Comprehensive Economic Partnership – a free-trade agreement
among more than a dozen countries in the Asia-Pacific region.
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And it has carved out a potentially influential role in the region by
maintaining constructive relations with both China and the United
States.
Public disengagement
But this isn’t the way Australians tend to think about their next-door
neighbour. Australians seem little engaged in what is generally
considered a very important relationship for the country.
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The Lowy Institute’s poll of Australian attitudes to the world reveals
limited knowledge about Indonesia’s system of government and
national experience. Recent annual surveys indicate only 39% of
Australians agree that Indonesia is a democracy, and just 37% believe
its government has worked hard to fight terrorism.
Another sign of this disengagement is the steady decline in
Indonesian language enrolments in Australian universities. Only 178
university students were undertaking Indonesian language studies in
2019, down 63% from a peak of 503 in 1992.
Australian businesses also lack interest or capability when it comes to
Indonesia. There has been little evidence of change since an Asialink
business report in 2017 found 90% of the top Australian public
companies were not adequately equipped to do business in Asia.
Australia isn’t front of mind for many Indonesians, either. They are
naturally more focused on the pressing challenges and opportunities
in the rest of Asia, specifically Southeast Asia and China.
Bipartisan efforts to prioritise the relationship
It wasn’t always like this. Enthusiasm for Bahasa Indonesia grew
rapidly in the early 1990s when it became the third-most studied
language in Australian schools.
Its rise was spurred by a national languages policy introduced by the
Hawke government, which highlighted the importance of Indonesian.
The establishment of the New Colombo Plan by Foreign Minister Julie
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Bishop provided fresh momentum after 2013, supporting significant
numbers of Australians to study Indonesian and other regional
languages while extending their studies abroad.
Governments can clearly play a role in stimulating public interest.
Successive Australian administrations have certainly prioritised the
official relationship between the countries, with both the Keating and
Howard governments signing security agreements with Indonesia in
1995 and 2006, respectively.
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Prime Minister Paul Keating speaks with President Suharto during his visit to Jakarta in 1992. National
Archives of Australia
The Morrison government has joined its predecessors in prioritising
Jakarta as a destination for ministerial travel. During a recent visit by
Foreign Minister Marise Payne and Defence Minister Peter Dutton to
Jakarta last September, the two countries agreed to collaborate more
closely on defence training and efforts to combat terrorism and
cybercrime.
And a new trade agreement, called the Indonesia-Australia
Comprehensive Economic Partnership Agreement, came into force in
mid-2020, which built on a range of important economic and security
arrangements between the countries.
By reducing barriers to trade, this agreement provides the framework
to boost bilateral trading links – if business is willing.
Fresh opportunities for trade
Despite these efforts, the two countries are still “strangers next door.”
Australians stand to lose most if the two countries remain this way.
Indonesia is projected by some to be the world’s fifth-largest economy
by 2030, and fourth-largest soon after that. It is already host to many
mega-cities and a thriving digital economy. In fact, a number of tech
“unicorn” companies are developing relationships with the largest
global tech platforms.
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There are other areas of growth potential in the trade relationship,
including textiles, fashion, food processing, healthcare services and
infrastructure development.
But, overall, bilateral trade remains too skewed towards “traditional”
items, such as petroleum, minerals and live animals. The economic
relationship is under-performing as a result.
In fact, trade between the two countries has declined to the point
where Indonesia is now Australia’s 14th largest trading partner, behind
Thailand, Vietnam and Malaysia. This cannot be fully explained by
the pandemic’s impact on the tourism and education markets.
Indonesia should be factored into any Australian strategy to diversify
its trading links away from China. But Australians will be poorly
positioned to take advantage of these opportunities unless something
is done to address the lack of knowledge about Indonesia’s language,
culture and governance.
Greater public awareness is what’s needed
A truly mature relationship requires high levels of public participation
and awareness, and this needs work.
The challenge is for Australians to stay informed about what
Indonesia is becoming. This involves understanding the effort it has
made to put its security challenges in the past, while also recognising
there are some areas where we may differ. The death penalty is an
obvious case in point, and a really strong relationship should allow for
frank discussion on this and other human rights concerns.
While there’s a lot of ground to make up, there are some positive
ingredients to work with. The 2021 Lowy Institute poll indicates
Australian trust in Indonesia as a nation has lifted recently, even if
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Australian knowledge of the country and trust in its leaders remain
low.
Science and technology ties remain strong, with some exciting joint
research projects by Australian and Indonesian universities underway
through the Partnership for Australia-Indonesia Research. And
programs such as the Australia-Indonesia Youth Association indicate
growing interest by young people in both countries to learn more
about each other.
Before the last Australian federal election in 2019, there were calls for
any incoming government to stimulate fresh community
understanding and awareness of this important relationship. This case
remains strong. Indonesia is changing, and Australians need to keep
up.
Comment on this article
Ian Kemish
Former Ambassador and Adjunct Professor, School of Historical and
Philosophical Inquiry, The University of Queensland
Ian Kemish is a director of the Australia-Indonesia Centre and a senior adviser
with Bower Group Asia. He is also a nonresident fellow at the Lowy Institute and
an adjunct professor at the University of Queensland. He is a former Australian
diplomat who served as Head of DFAT's Southeast Asia Division, as Head of the
Prime Minister's International Division, and as an Ambassador in both the Asia
Pacific and Europe. After leaving government service he worked for several years
as a member of the leadership team at Newcrest Mining Limited, which had
operational interests in eastern Indonesia.
University of Queensland provides funding as a member of The Conversation
AU.
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