PM Transcripts

1. During President Widodo’s state visit to Australia, Prime Minister Turnbull and President Widodo met for the annual Indonesia-Australia Leaders’ Meeting with other Australian and Indonesian Ministers in Sydney on 25–26 February 2017.
2. Leaders acknowledged the deep historical ties between Australia and Indonesia as a foundation for a strong 21st Century partnership. Leaders reaffirmed their commitment to the Lombok Treaty, signed in 2006, which is the bedrock for Indonesia and Australia’s defence and security relationship. Our relationship continues to evolve, reflecting the strength of the partnership between our two dynamic and growing countries.
3. To seize the opportunities before us, Leaders agreed to draw on the strengths of each country to create jobs and investment and raise living standards; to harness a shared strategic vision for our region to safeguard sea lanes, fight terrorism and deter transnational crime; and to celebrate our diversity, through deeper community understanding of our neighbouring societies, languages and cultures.
4. The Australia-Indonesia relationship has the potential to bring enormous benefits to our peoples and to be one of the most consequential in our region. Our common interests mean we will be much stronger if we work together in our rapidly changing region. Risks and uncertainties only make it more critical we have a strong partnership that enables us to tackle challenges and seize opportunities together.
5. Leaders reaffirmed Australia and Indonesia’s mutual commitment to each other’s prosperity and security, underpinned by an extensive framework of cooperation spanning political, economic, security, development, education and people-to-people ties.

Enhanced Economic Partnership

6. As the two largest economies in the region, Australia and Indonesia have shared interests and a common future. Leaders noted trade links are strong, but have not yet reached their full potential. They recognized that as close neighbours in the world’s most dynamic region opportunities are on our doorstep.
7. Leaders committed to intensify our efforts to achieve a high-quality Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) to transform our economic partnership. The two Leaders’ commitment on IA-CEPA reflects our shared determination to demonstrate regional leadership in support of trade to drive growth and prosperity. IA-CEPA will improve on commitments under our existing free trade agreement, the ASEAN-Australia-New Zealand Free Trade Agreement. It will create new openings for trade and investment to ensure the economic relationship can flourish into the future.
8. Our vision for IA-CEPA goes beyond a traditional free trade agreement. It will face the challenges and seize the opportunities of the current trading environment building on the special Indonesia–Australia relationship. Accordingly, IA-CEPA will deliver on trade and investment, and also drive cooperation and support greater partnership.
9. Negotiations are progressing well, with the last round of talks held just last week. Leaders recommitted to concluding a comprehensive deal this year.
10. Leaders discussed the importance of infrastructure to fulfilling economic potential. Leaders noted that a new Australian-funded 10 year $300 million program in Indonesia was due to commence in April. This program will support the development of high quality infrastructure.
11. Leaders agreed on the importance of maintaining stable food supply and affordability and reaffirmed their commitment to build cooperation in the beef and cattle industry. Leaders recognised the progress made so far through the Partnership on Food Security in the Red Meat and Cattle Sector and the focus on building a strong integrated supply chain in cattle and beef products between the two countries. They agreed that market-based solutions and building capacity are the best means to ensure strong and productive industries, stabilise prices and grow markets.
12. Leaders discussed the importance of embracing culture, arts and creative industries to support economic growth and investment. Leaders witnessed the signing of a Declaration of Intent to pursue greater cooperation on creative economies.
13. Recognising Surabaya’s vital importance as Indonesia’s second largest city and a key logistics, manufacturing and services hub, Australia announced that it would establish a new Consulate-General there to boost trade and investment links with the growing and dynamic East Java region and beyond.

People-to-People Links

14. Leaders noted the successful hosting of the 3rd Indonesia Australia Dialogue in Yogyakarta, in August 2016. The dialogue promotes mutual understanding between our two countries by facilitating productive and interactive discussions between participants from a broad range of fields, including business, science, education and media. Leaders acknowledged the role of civil societies in helping to shape bilateral relations and welcomed their recommendations as part of the solution to responding to challenges faced by the two countries. They encouraged the convening of the fourth Indonesia Australia Dialogue in Australia in 2017/2018.
15. Leaders supported the establishment of Indonesian language centers in Darwin, Brisbane and Sydney in addition to the existing centers in other parts of Australia. Such language centers aim to promote the study of Bahasa Indonesia and culture across Australia. Leaders agreed that the more Australians and Indonesians who can speak each other’s languages, the more we can increase mutual understanding, respect and friendship between our peoples.
16. Leaders recognised that innovation, science and technology, media and cultural exchange are vital to promote mutual understanding and respect between the two societies. Therefore, they committed to increase those areas of cooperation. In this context, Leaders welcomed the success of the New Colombo Plan. Since 2014, over 2000 Australians have studied in Indonesia under the Plan.
17. Innovation and science were highlighted as new areas for bilateral collaboration that were crucial to economic development. Leaders welcomed the inaugural Australia-Indonesia Science Symposium held in Canberra from 28 November to 1 December 2016 that brought together over 100 leading scientists from Australia and Indonesia to consider innovative research in health, marine science, agriculture, and big data.

Maritime Cooperation

18. Australia and Indonesia share maritime boundaries. Leaders recognised the importance of maritime trade and the blue economy to Australia and Indonesia’s collective prosperity. They committed to developing maritime connectivity between markets in the region. Leaders also acknowledged that the two countries’ maritime cooperation was strong with over 40 standalone activities and that there were opportunities to enhance the partnership.
19. Leaders witnessed the signing by Foreign Ministers of a Joint Declaration on Maritime Cooperation to deepen further maritime cooperation and deliver mutual economic and security benefits. The Declaration focuses on achieving strengthened maritime security architecture and maritime border protection in our region, improved information sharing to combat transnational organized crime committed at sea, greater regional and coastal interconnectivity, improved reliability and efficiency of shipping in the region, and more sustainable management of marine resources. Australia and Indonesia further recognised that illegal, unreported and unregulated fishing is a complex and growing problem, and reaffirmed their commitment to support efforts to combat it. Leaders agreed the two sides would develop an Action Plan to implement the Joint Declaration.
20. Leaders acknowledged the 75th Anniversary of the sinking of the HMAS Perth on 1 March. They reaffirmed their commitment to work together to strengthen cooperation in the area of maritime cultural heritage in accordance with respective national policy, laws, and regulations.
21. The Leaders also underscored Australia and Indonesia’s joint commitment to enhancing regional cooperation in promoting maritime safety and security, including through the East Asia Summit (EAS) Maritime Security Cooperation Seminar in Sydney from 23 25 November 2016, co-hosted by the two nations. Leaders noted that the Seminar played an important role in strengthening the EAS’ mandate to address regional maritime challenges and to give effect to the three priorities of the EAS Statement on Enhancing Regional Maritime Cooperation: enhancing sustainable marine economic development; promoting peace, stability and security; and addressing transboundary challenges.
22. Recognising that stability and security supports an economically prosperous South East Asian region, the two Leaders underlined the importance of maintaining peace, security and stability, freedom of navigation in and overflight above the South China Sea. Leaders underscored the importance of respecting countries’ sovereignty, and for the states concerned to resolve disputes peacefully, with full respect for legal and diplomatic processes, and in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Leaders also emphasized the importance of non-militarisation and reducing tensions by refraining from conducting activities that would complicate or escalate disputes and affect peace and stability. Leaders underscored the importance of full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC) in its entirety. Leaders encouraged ASEAN Member States and China to work toward an early conclusion of an effective Code of Conduct in the South China Sea.

Counter-Terrorism and Transnational Crime Cooperation

23. Prime Minister Turnbull and President Widodo recognised the importance of wide-ranging bilateral cooperation on justice, law and security. They agreed the current partnership is achieving results and committed to strengthen cooperation further through the new Australia Indonesia Partnership for Justice-II, a five-year program valued at up to $40 million.
24. The partnership will draw on the robust relationships between Australian and Indonesian government agencies to continue to strengthen Indonesia’s law enforcement institutions and the overall security architecture. Leaders acknowledged the need for an increased focus on countering violent extremism, and committed to work together to prevent radicalisation, challenge extremist propaganda, and maintain strong, cohesive, and multicultural/multi-faith societies.
25. The two Leaders emphasised the importance of an open, free, and secure Internet to economic growth and innovation, and resolved to further deepen cooperation to deal with cyber threats. Leaders welcomed the two countries’ agreement to establish a strategic-level Australia-Indonesia Cyber Policy Dialogue.
26. Leaders acknowledged the important role of the Australia-Indonesia Ministerial Council on Law and Security, the third meeting of which was held in Jakarta on 2 February 2017, as a forum to discuss and agree closer cooperation on the evolving threats of terrorism, cyber security and transnational crime through our law, justice, and security agencies.
27. In the context of Co-Chairing the Bali Process, Leaders acknowledged the two countries’ constructive bilateral cooperation to combat and disrupt people smuggling and human trafficking in collaboration with regional partners. They emphasised their ongoing commitment to tackling the challenges posed by irregular migration and transnational crime, and welcomed the establishment of the Bali Process Consultation Mechanism. The Leaders announced the launch of the Bali Process Business Forum which will be held in Perth on 24 -25 August 2017 to engage the private sector in addressing trafficking in persons and related exploitation.
28. Leaders acknowledged the Jakarta Centre for Law Enforcement Cooperation will continue to be a centre of excellence for capacity building on law enforcement in combating transnational organised crimes.

Defence and international affairs

29. Prime Minister Turnbull and President Widodo agreed to strengthen cooperation to protect the two nations’ shared strategic interests. They highlighted the importance of bilateral strategic dialogue including through the annual 2+2 meetings held most recently in Bali in October 2016.
30. Australia congratulated Indonesia on its successful chairing of the Indian Ocean Rim Association (IORA), including its signature 20th anniversary initiatives. Australia looked forward to the Leaders’ Commemorative Summit and the signing of the IORA Concord to take place in Indonesia in March 2017.
31. Leaders agreed on the need to deepen our collaboration to continue to strengthen regional institutions, such as the East Asia Summit and ASEAN Defence Ministers’ Meeting (ADMM)-Plus. They looked forward to the Special ASEAN-Australia Summit in Australia in 2018 and saw it as an excellent opportunity to promote private sector business integration and to address security issues affecting the region.
32. The two Leaders acknowledged that the EAS continues to develop as the key Leaders led forum for discussing regional issues. In line with the Kuala Lumpur Declaration on the 10th Anniversary of the EAS, Leaders reaffirmed the EAS’s role in reinforcing habits of dialogue and consultation and respect for international rules and norms. They committed to working together to further bolster the EAS’ institutional foundations, including strengthening the role of EAS Ambassadors.
33. Leaders looked forward to Australia and Indonesia co-chairing the important ADMM+ Expert Working Group on Peacekeeping Operations 2017-2020, noting the region would benefit from Indonesia's significant peacekeeping experience.
34. Leaders committed to continuing strong collaboration through the G20, the premier forum for strengthening the world economy and global resilience. Leaders recognise that progress on this agenda is essential for achieving strong, sustainable, balanced and inclusive growth.
35. The leaders affirmed the continued importance of the Asia Pacific Economic Community (APEC) to continue as the premier economic forum for the Asia Pacific region. They agreed that APEC should promote sustainable development and resist all forms of protectionism.

Sydney

26 February 2017