Australia -- Indonesia relations refers to the foreign relations between Australia and one of its few neighboring countries, Indonesia. Relations began as early as 1640 with contact between Indigenous Australians and Makassan trepangers from southwest Sulawesi and formalised with Australia 's full recognition of the Republic of Indonesia in 1949. In recent years, the relationship has been characterised by growing mutual trade of $14.9 billion in 2011 -- 2012, an increase of 8.3 % on the previous year, in addition to close links in government, education, and defence under the Lombok Treaty. Both nations are members of the G20, ASEAN Regional Forum, and the Australia - New Zealand - ASEAN Free Trade Agreement. Indonesia received $541.6 million in Australian development aid in 2012 -- 2013.
where is indonesia located in relation to australia
neighboring