Australia and Indonesia signed a new security agreement on Friday aimed at strengthening defense cooperation between Canberra and Southeast Asia’s largest economy. The deal includes plans to build new military training facilities and enhance joint operational capabilities. According to a joint statement cited from Jakarta, a senior Indonesian officer will be embedded within Australia’s defense forces as part of the collaboration. Australian Prime Minister Anthony Albanese described the agreement as a historic moment for bilateral relations.

Albanese said Australia would help Indonesia improve its military training infrastructure to make joint exercises more effective. He emphasized the countries’ shared maritime boundary as a natural foundation for close partnership. The agreement comes as Australia seeks to bolster its defense capacity amid China’s growing influence in the Asia-Pacific, while Indonesia maintains a balanced foreign policy to preserve ties with its key trading partner, China.

Indonesian President Prabowo Subianto said the pact reflects Indonesia’s “independent and active” foreign policy and commitment to good neighborly relations. The deal follows a 2024 defense agreement that led to large-scale joint military exercises in East Java.