Economic Partnership Agreement

December 2006 | Ratings Update

In a bid to mend turbulent relations, Indonesia and Australia have signed a treaty that provides greater security co-operation while recognising Jakarta's sovereignty over its extensive archipelago. The new pact hit a stumbling block earlier in the year after Australia granted protection visas to 43 Papuan asylum-seekers, who claimed they were being persecuted by Indonesian authorities. The 'Lombok Treaty', which also presents the possibility of co-operation in civilian nuclear research and the sale of Australian uranium to Indonesia, has attracted much criticism from those who fear that the pact will leave Indonesia free to suppress groups seeking Papuan independence.

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