While Indonesia’s economic and diplomatic orientation may be tilting eastward, its military and defence policy tells a more complex story—one of deliberate balance rather than allegiance.
Strategy
The changes, announced on Monday, are small. The main feature is a modest increase in the government’s target maximum number of new international students. This will see the target go from 270,000 in 2025 to 295,000 in 2026.
Japan is advancing a layered maritime security strategy in the Indo-Pacific by combining defence cooperation, capacity building, and strategic financing with key partners such as India, Indonesia, and Australia.
It is pumping hundreds of millions of dollars into KINETIK, that’s the Indonesian acronym for the Australia Indonesia Climate, Renewable Energy and Infrastructure Partnership program. The Electrum loan is part of KINETIK’s portfolio.
Indonesia and Australia reaffirmed their commitment to combating terrorism and violent extremism during the 10th Bilateral Consultation Meeting on Countering Terrorism and Violent Extremism, held in Jakarta on July 24.
Professor Jennifer Westacott AC, Australia’s Business Champion for Indonesia shares what it means for Indonesia not just to be Australia’s neighbour, but also a partner of choice.
This is the foundation for regional security and sustainable development. It is also the best hope we have for meeting the challenges of the future, from the clean energy transition to digital disruption, and from sustainable cities to public health.
Indonesia has inaugurated a National AI Centre of Excellence in Jakarta in partnership with Indosat Ooredoo Hutchison, NVIDIA and Cisco. The centre is designed to fast-track the adoption of AI and build digital talent to support Indonesia’s ambitions for its 2045 digital vision.
US President Donald Trump says he has struck a trade pact with Indonesia resulting in significant purchase commitments from the south-east Asian country, after negotiations to avoid steeper tariffs.
Meaningful trilateral security cooperation between Australia, India and Indonesia may not be feasible. Indonesia’s strategic culture is a significant reason.
Indonesian President Prabowo Subianto has voiced his support for Brazilian President Luiz Inácio Lula da Silva’s call to reform the United Nations, advocating for greater representation of emerging countries on the global stage.
Saudi Arabia and Indonesia signed several deals and memos of understanding worth around $27 billion between private sector institutions in several fields including clean energy and petrochemicals.
Indonesia’s decision to acquire 48 KAAN fifth-generation fighter jets from Türkiye marks a major leap in its defence modernisation and airpower ambitions. Signed during the Indo Defence Expo and Forum held in Jakarta in June 2025, the agreement includes technology transfer and domestic production collaboration, potentially transforming Indonesia’s aerospace ecosystem.
Indonesian President Prabowo Subianto will visit Vladimir Putin in Russia next week, skipping an in-person gathering of Western leaders at the Group of Seven (G7) summit in Canada.
At Indodefense 2025, held in Jakarta and gathering key defense industry players from Asia and beyond, Indonesia unveils a new stealth missile boat designed to meet operational demands in complex maritime environments.
Indonesia and Australia will hold joint military exercises on a strategic eastern island in the archipelago as the two neighbours seek to strengthen defence co-operation.
