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J

OINT

DECLARATION

ON

COMPREHENSIVE

PARTNERSHIP

BETWEEN

T

HE

REPUBLIC

AND

AUSTRALIA

Indonesia-Australia relations have come a long way. This relationship is one of the most far reaching, high level interactions between two countries in the Asia-Pacific region. As close neighbours and friends, Australia and lndonesia have a strong relationship, with substantial, longstanding and wide-ranging links between our Governments, peoples and business communities.

We are strongly committed to strengthening this cooperation in all areas by building a Comprehensive Partnership to take lndonesia and Australia's bilateral relationship into a new era. lndonesia and Australia are not just close neighbours but fellow democracies with shared interests and a common future.

We are countries with different cultures and traditions, but we share many common objectives. As sovereign nations, we each respect the territorial integrity and unity of the other. Australia does not support separatist movements in any part of Indonesia. Indonesia's unity, stability and prosperity is vital for Australia's own security and well-being and Australia's security and prosperity similarly is important to lndonesia a united, strong, stable, prosperous, and democratic lndonesia can be a model for successful democratic transition for the world.

All Australians were overwhelmed by the terrible earthquake and tsunami, an unprecedented disaster that occurred on 26 December 2004 in Aceh and North Sumatra and further deeply saddened by the earthquake and loss of life in Nias and neighbouring islands on 28 March 2005. The generous and heartfelt response of the Australian people and the Government to the tsunami tragedy underlines the deep sympathy and affinity Australia and Australians feel for their neighbour, Indonesia. lndonesia extends its gratitude for the expression of sympathy and generous support by the Government and people of Australia for the emergency relief as well as the rehabilitation and reconstruction phases to the devastated areas. lndonesia also greatly appreciates the cooperation extended by the Australian Defence Force (ADF) which worked closely with the Indonesian Armed Forces (TNI) in responding to the emergency in the immediate aftermath of the tsunami as a psychological breakthrough.

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established the guiding principles of implementation and priority activities for funding. lndonesia will finalise its plan for reconstruction, development and rehabilitation of Aceh and North Sumatra in May 2005. Considerable financial support will be necessary to support the plan. Key priorities for action under the partnership would include the rehabilitation of health, education and government services in Aceh and improvement of Indonesia's disaster management capabilities.

We believe that this Comprehensive Partnership that promotes bilateral cooperation between the two countries could cover cooperation in the field of economic and technical cooperation, security cooperation and enhanced people-to-people interaction.

Economic and Technical Cooperation

Australia and lndonesia share a fundamental commitment to economic growth and development. Australia welcomes Indonesia's efforts to reform its economy, build strong institutions, improve and tackle corruption. The Indonesian government has sent a clear signal that it wants to create an environment that is essential to achieve the level of growth that will ensure employment and prosperity for all Indonesians. Australia's companies are already active in lndonesia and Australia is an important investor. Indonesia's investment in Australia is growing.

There have been frequent business dialogues between our two countries and there remain substantial opportunities for expanding business relationships in both directions. Services trade is a priority area for further growth especially in the education and health sectors. We also hope for an increased flow of tourists between our two countries. We are both committed to maintaining open markets, reassessing non-tariff barriers and creating certainty for investors and business. Both countries also recognised the need to provide market access to small and medium enterprises.

To promote further trade and economic relations, both sides will intensify consultation and cooperation to produceahigh quality agreement which serves the national interest of both countries best, between the ASEAN Free Trade Area (AFTA) and the Closer Economic Relations between Australia and New

Security Cooperation

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