Portfolio — 15 July 2026

The Assistant Minister for Foreign Affairs and Trade, Mr Thistlethwaite, used a ministerial address to announce the signing of the Australia–Indonesia Treaty on Common Security, which he described as the most significant bilateral step to date between the two countries [TA-260714-dfat-4c899a6ddb19]. The Treaty establishes regular consultations on defence, maritime, cyber and economic security, and introduces concrete defence cooperation measures: joint military exercises, the development of defence training facilities in Indonesia, an embedded position for a senior Indonesian officer within the Australian Defence Force, and an expanded Junior Leaders' Forum military education exchange [TA-260714-dfat-4c899a6ddb19].

The government is investing more than $33 million to implement the Treaty and support shared economic security and resilience.

Mr Thistlethwaite grounded the announcement in supply-chain terms before turning to the strategic picture. He reported that the bulk carrier Medi Luna had delivered approximately 47,000 tonnes of urea to the Port of Brisbane under a deal between PT Pupuk and Incitec Pivot, arranged after Middle East supply disruptions [TA-260714-dfat-4c899a6ddb19]. He noted that urea is critical to Australian wheat, barley and oat production, that more than 60 percent of Australia's wheat is exported, and that over three million tonnes have been shipped to Indonesia in the past five years — framing the bilateral fertiliser and flour trade as a live demonstration of the mutual dependency the Treaty formalises.

He also pledged to double Australian LPG supplies to Indonesia between 2025 and 2026 to meet cooking fuel demand, adding an energy dimension to the economic resilience argument.

The strategic rationale drew on a pointed regional assessment. Mr Thistlethwaite warned of the largest post-World War II military buildup in the region, a recent submarine-launched ballistic missile test, climate change pressures and rapid technological change, while pointing to Southeast Asia's weight — 60 percent of global population and GDP, projected to become the fourth-largest economy by 2040 — as the reason the relationship demands sustained investment [TA-260714-dfat-4c899a6ddb19].

Australia's commitment spans security, maritime, trade, investment, ASEAN engagement, development and education.

People-to-people and institutional dimensions accompany the defence and trade measures. Additional funding will expand the Australia–Indonesia Institute's capacity to teach Indonesian language and country expertise, and a new leadership dialogue will connect parliamentary, business, government and media figures across the two countries. The continuity thread is clear: the address builds directly on the Katalis 2.0 launch in Jakarta, extending that economic cooperation framework into a broader security and strategic partnership.