I'd like to thank Sondang Sirait for her introduction and Minister for Foreign Affairs Dr Marty Natagelawa for his kind words.
Let me say first how saddened Australia was by the twin disasters that struck western Sumatra and Central Java in recent days - and by the devastating floods in Papua a few weeks ago.
Our thoughts are with all Indonesians at this time, particularly those who have lost loved ones.
We stand ready to contribute to Indonesian recovery efforts in every way we can.
Indeed, Australians and Indonesians are becoming used to standing by each other in good times and bad times.
And I also want today to acknowledge Australia's profound debt of gratitude to the Indonesian police and intelligence experts who have worked so hard to bring to justice the terrorists who have killed Australians holidaying and working in this beautiful country.
The same terrorists who have also killed many Indonesians.
Friends,
I would like to leave the present for a moment and go back in time.
In 1999, as a new member of the Australian Parliament, I was privileged to witness the birth of modern Indonesian democracy as an election observer in West Timor.
The enthusiasm of the Indonesian people as they patiently sat waiting to vote is a precious memory.
Eleven years later, I return to Indonesia for my first visit as Prime Minister of Australia, making this visit early in my tenure to signify the high priority I attach to our relationship with Indonesia.
The decade just passed has been a remarkable era of progress for the people of this nation.
Out of uncertainty you have created one of the world's great democracies. And in the process you have provided an inspiring example to emerging countries around the world.
When I look back on the optimism of those voters in West Timor, I know their trust in the Indonesian spirit was well placed indeed.
Our paths to democracy have been vastly different, but today
our relations are warmer and closer than ever.
President Yudhoyono's historic and successful visit to Australia earlier this year was a high point in the friendship between our two countries.
On that visit, His Excellency described the relationship as a strategic partnership.
And of course it is.
It is a partnership based on a shared interest in each other's progress, prosperity and security.
As a result, Australia and Indonesia now have annual Leaders' Summits and Foreign and Defence Ministers' meetings to drive even higher levels of cooperation between our two governments.
During his visit in March, President Yudhoyono also challenged us to reinvigorate the people-to people relationship.
Together we are working to do that.
Nearly 18,000 Indonesians are studying in Australia.
The number of tourists travelling between our countries is nearing record levels.
A recent survey revealed that links at the community level are widespread and growing.
I am also pleased that next year we will hold the first Australia-Indonesia leadership dialogue.
This dialogue will draw together public figures, business people, and academics on a regular basis - to share perspectives, build understanding and generate new ideas for strengthening ties between Indonesia and Australia.
Our economic relationship is one area where we can do more.
Today I had the opportunity to discuss with President Yudhoyono the next steps in our bilateral economic relationship and in particular our decision to launch negotiations for an Economic Partnership Agreement.
An EPA has been under discussion for some time because we recognise that while Australia-Indonesia trade and investment is substantial, it is smaller than it should be.
With an EPA, we could transform our economic relationship to the benefit of both countries.
Indonesia's economic growth is adding to its weight in global affairs.
We welcome that.
We share membership of the G20. We have worked together to ensure sustainable economic growth and to reform international financial institutions to give more weight to emerging economies.
We are partners in the East Asia Summit and we are working closely together in APEC.
Australia shares Indonesia's interest in making the East Asia Summit a forum which can make a real and positive contribution to regional stability.
In that regard, we have both welcomed the United States and Russia to the EAS.
I look forward to visiting Bali for next year's Summit.
Friends,
A strong and prosperous and democratic Indonesia is good for Australia and good for Southeast Asia.
Australia is committed to Indonesia's development - so much so that we are providing up to $2.5 billion over five years under the Australia Indonesia Partnership.
This partnership focuses on four major areas - education, health, infrastructure and governance.
Today I want to draw attention to our partnership around education, one of my absolute passions in public life.
I believe profoundly that education is the transformative experience that can uplift the horizons and prospects of every child.
That is why Australia is committed to helping Indonesia achieve its goal of providing nine years of quality basic education to all children by 2015.
Our commitment extends to the $387 million Basic Education Program, which is seeing more than 2000 schools built or expanded.
This morning I was pleased to discuss with President Yudhoyonoa new $500 million Education Partnership between Australia and Indonesia.
Under this Partnership, Australia will construct or expand up to 2000 more schools, which will create more than 300,000 new places for students wishing to attend junior secondary school.
In addition, we will work closely with the Government of Indonesia to improve school management by providing training for Indonesia's educational leaders.
And we will continue our support to Islamic education by helping around 1,500 Islamic schools to achieve accreditation against national education standards.
Australia is also working to support the higher education of Indonesians - over 300 scholarships are awarded annually to Indonesians to study at Australian universities.
Following these remarks it will be my very great pleasure to present scholarships to three such outstanding students.
Friends,
Visiting here today, I am reminded that Australia has a long history of friendship with Indonesia.
Just as I was witness to the birth of modern democracy in West Timor in 1999, Australia stood with the people of Indonesia in their struggle for independence six decades ago.
Our prime minister in those days - Ben Chifley - was much loved by the Australian people, and his support for Indonesia was deeply rooted in his values and his experiences.
In his earlier life Chifley had travelled to this archipelago where he promised that if he was ever in a position to help the Indonesian people, he would do his very best.
By a remarkable coincidence of history, Chifley became Australia's Prime Minister at precisely the time when Indonesia's fate lay in the balance.
At Chifley's repeated urging, the fledgling United Nations intervened to end colonialism and secure Indonesian independence.
And it was Australia, led by Chifley, that was the first government in the world to recognise the new Republic of Indonesia.
These events, and the support of ordinary Australians for Indonesia's independence, are recorded in a photo exhibition outside this room.
Why did Chifley do these things?
Because Chifley believed in the potential of the Indonesian people and saw great things for the future of this nation.
Like Chifley I too am an optimist.
I believe that for Indonesia, as for Australia, we can do great things and that our best days still lie ahead.
Let us build that future together.
Thank you.