Australia's defence co-operation with Indonesia spans some of the most controversial issues in domestic and international politics today, including the fight against terrorism, refugee and asylum seeker movements, the South China Sea and cyber security challenges.
Indonesia's move to suspend all military co-operation with Australia is the latest in a series of disputes between the two neighbours and risks the careful progress talked up by the Turnbull government and President Joko Widodo's administration.
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Strained relations
The Indonesians have suspended military co-operation with Australia over training posters deemed offensive and concerns Indonesian soldiers will be recruited in Australia. Courtesy ABC.
What is included in Australia's formal co-operation agreements with Indonesia?
The most recent 2+2 Dialogue with both countries' foreign and defence ministers in October 2016 highlighted a "comprehensive strategic partnership with the objective of ensuring economic development, prosperity, peace and security in the region."
![Foreign Minister Julie Bishop, Indonesian Foreign Minister Retno Marsudi, Prime Minister Malcolm Turnbull, Indonesian ...](/web/20170105090539im_/http://www.theage.com.au/content/dam/images/g/l/s/i/7/3/image.related.articleLeadwide.620x349.gtmbea.png/1483589764861.jpg)
As part of recent agreements, Australia has reiterated support for Indonesia's territorial integrity and sovereignty and agreed to work with Jakarta on maritime security, intelligence, humanitarian assistance and disaster relief as well as capability development and procurement.
Indonesia has welcomed Australia's recent white paper on the development of northern Australia and agreed to increased defence industry and military modernisation co-operation to promote peace, stability and security in the Indo-Pacific region.
The two countries complete regular military training together, with joint exercises and exchanges. They co-operate directly on controversial anti-people smuggling operations and on anti-radialisation efforts such as trying to stop foreign fighters joining overseas conflicts, including with Islamist groups in the Middle East.
The first joint training exercise on Australian soil since 1995 took place in Darwin last year. It was considered a landmark event in the repair of the relationship since the East Timor crisis.
The two countries have acknowledged a common threat from terrorism and established links between law enforcement and national security agencies, immigration and customs bodies and cyber security experts.
![Happier times: Indonesian military commander General Gatot Nurmantyo and Australian Defence chief Air Marshal in October.](/web/20170105090539im_/http://www.theage.com.au/content/dam/images/g/t/m/0/f/9/image.related.articleLeadwide.620x349.gtmbea.png/1483589764861.jpg)
In October Defence Force Chief Air Chief Marshal Mark Binskin hosted Indonesian National Armed Forces Commander, General Gatot Nurmantyo, in Canberra, as part of efforts to promote "mutual trust and cooperation".
On Thursday, Defence Minister Marise Payne said only some aspects of co-operation had been put on ice and negotiations about Indonesia's involvement in a multilateral military exercise planned for next month were ongoing.