More Than Words: Australia-Indonesia Strategic Relations

Australia-Indonesia Joint Patrol

By Natalie Sambhi

Australia’s leaders from both sides of politics have been paying greater attention to Indonesia; there’s been more official engagement, as well as new diplomatic and defence initiatives in the past year. And we’ve been describing Indonesia, as our Defence Minister has during his Jakarta visit last week, in more important terms like ‘strategic partner’.

But it looks like that there’s some way to go before ‘strategic partner’ becomes more than just a term of endearment. If we look at the 2009 Defence White Paper (for the time being still the government’s defence strategic policy), we find a curious ambivalence towards Indonesia. According to the White Paper, we have a ‘fundamental interest in controlling the air and sea approaches to our continent’ (paragraph 5.5). But in reference to a secure immediate neighbourhood, it says we should prevent or mitigate ‘nearby states [from] develop[ing] the capacity to undertake sustained military operations within our approaches’ (paragraph 5.8). There’s a contradiction there; as Hugh White notes in his Security Challenges essay (PDF), it may very well be those same capabilities Indonesia requires to ensure its own security in its northern approaches that could be instrumental in both Indonesia and Australia securing their strategic interests.

In short, the language of the 2009 Defence White Paper simply doesn’t match our statements of Indonesia as a strategic partner. And although there are asymmetries in our capabilities, a strategic partnership means allowing and encouraging Indonesia to grow in a way that complements our strengths and compensates for our weaknesses so that we can work together; if Indonesia is to play an important role in our strategic future, then actively mitigating or preventing particular capacities isn’t the way to go.

This position might have been justifiable in white papers released after Konfrontasi (during which Australia and Indonesia found themselves on opposing sides of the conflict) or shortly after the 1999 East Timor intervention, during which relations with Indonesia were more fractious and the military (TNI) was only just exiting Indonesian politics. But times have changed.

On the domestic front, Indonesia is a much more stable, democratic state. In economic terms Indonesia is now starting to flex its muscle. Its GDP grew by an annualised 6.4% in the second quarter of 2012, its economy is now larger than Australia’s in purchasing power parity terms, and its middle class is larger than Australia’s population. TNI no longer exerts the same level of direct influence on politics and there’s a greater commitment to crack down on corruption. In regional terms, Indonesia enjoys greater clout and has attracted the attention of international partners such as the United States, the United Kingdom and China. Recent participation in RAAF-hosted Exercise Pitch Black 2012 (see image) shows Indonesia’s willingness to engage with partners such as Australia by sending their newest aircraft to build person-to-person ties and to dispel doubt as to their military intentions.

Barring a significant change in Indonesia’s trajectory of growth and domestic transformation, this is likely to become an enduring externality for Australian policy. Nonetheless, it’s worth thinking through the factors that could cause problems for Indonesia down the track: these include slowed growth, a change of leadership to one that is more internally focused, and deteriorating domestic stability. The question is whether these eventualities would adversely affect the Indonesia–Australia relationship in the long-term or would merely slow the engagement temporarily. That said, the relationship between Indonesia and Australia seems to be on an unstoppable path of growth. A nationalist President of Indonesia would be a concern but wouldn’t necessarily require a radical rewrite of Indonesia’s place in our strategic interests. In any case, as one RSIS commentator notes (PDF), nationalism at present is not a call for concern.

Likewise, Australia can cause ructions over livestock, people smuggling or the incarcerations of Australians, but the fundamental shared interests should ultimately prevail. In terms of shifting regional geopolitics, Australia and Indonesia might have more in common in the future Asia as we both navigate China’s rise and the US rebalance. A Defence Cooperation Agreement signed recently between Australia and Indonesia provides a framework for practical cooperation on common security matters, but it’s time to work together as well on bigger, long-term strategic questions about the region.

Indonesia demands different handling in the next Defence White Paper, which is as much an opportunity as the Asian Century White Paper to correctly recognise Indonesia’s place. Language matters, because it sends a strong signal to both the Australian and Indonesian people about how we see each country’s place in the region. And while the majority of everyday people in each country may not delve into the pages of the White Paper, setting the tone for political interaction as well as doing away with ambiguous language remains important. Hopefully the 2013 White Paper will articulate Indonesia’s importance and elevate it to partner status rather than a subordinate. That sort of constructive language would remove the disparity between language of the 2009 White Paper and the increasing importance of close defence relations and alignment of strategic interests between the two nations.

The White Paper might start by recognising the complementarity across our capabilities, strengths and weaknesses. Or it could, as Hugh White suggests, create a heading for Indonesia separate from the rest of ‘our neighbourhood’ to recognise the important role it plays in our strategic environment. While there’s no prospect of an alliance between our countries in the foreseeable future, it would provide a more robust basis in our national policy to give a broader context to initiatives such as the recently signed Defence Cooperation Agreement.

Defence Minister Smith assures us that he is ‘committed to regular, open and transparent discussions with Indonesia on the development of Australia’s 2013 Defence White Paper’. Let’s hope the final cut pays them the same due respect.

Image courtesy of Department of Defence.

Natalie Sambhi is an analyst at the Australian Strategic Policy Institute, editor of The Strategist and co-editor of Security Scholar. She is also a Hedley Bull Scholar and graduate of the Australian National University.

This article appeared in its original form and was cross-posted by permission from The Security Scholar.

CIMSEC’s DC End-of-Year/Holiday Meet-Up

Actual attendees and location not picture above.

Help us celebrate our first holiday season and the end of the year with our final 2012 DC meet-up. The crowd will be heading to the bar area of the District Chophouse at the Gallery Place/Chinatown metro stop.  We hope you’ll join us to meet some interesting people, discuss our forthcoming end-of-the-year predictions, and just generally have a good time.

Time:   Wednesday, 12 Dec, 5:30-9pm            Happy hour lasts til 7:00pm

Place:   District Chophouse, Bar Area

509 7th St NW, Washington, DC

All are welcome and no RSVP is required, but if you’re planning on coming please drop me a line so we have an idea of how many seats to reserve: director@cimsec.org

Rough Waters For the Canadian Navy?

The first batch of the Arctic Offshore Patrol Ships (AOPS) is expected in 2018.

By Milos Zak

The Canadian navy’s recent rebranding back to its “royal” roots constitutes one in a series of initiatives best described as a “renaissance” for the Canadian armed forces. The navy is set to replace aging vessels and fundamentally alter Canada’s power projection on the high seas – most notably, taking a definitive step into the mineral and energy-rich – and increasingly accessible – High Arctic.

With one the longest navigable coastlines of any other nation, a changing climatic reality in the North, bold moves challenging Canada’s sovereignty from maritime neighbours, and increased interest in northern development makes the timing and scale of Ottawa’s move hardly a coincidence.

The Background

On October 19th, 2011, the Harper Government announced a 35-billion dollar plan to revamp Canada’s naval hardware as part of the “National Shipbuilding Strategy”, with around 25 billion going to Halifax’s Irving Shipbuilding for twenty-one combat vessels, and an 8 billion going to Vancouver’s Seaspan Marine for eight non-combat vessels.

The losing party is Davie Shipbuilders located in Lévis, Québec, marred by bankruptcy protection well before the October 2011 announcement.

Initially, focus fell on the supposedly politics-free pledge for awarding the contracts (which turned out to be merit-based and transparent according monitors) accompanied by demands for more information from the NDP opposition critic Peter Stoffer, few could deny that the announcement was also very favourable for CEO Jim Irving and Defence Minister Peter MacKay.

2012 is the year in which each of the shipbuilders finalize their contracts with Ottawa. Without a doubt, those same businessmen and politicians which celebrated in October of 2011 are now faced with a belt-tightening reality in Ottawa which could delay the delivery of Canada’s new fleet of combat ships. This makes 2012 the year in which the greatest revisions to the deal could occur.

The Ships

Arctic offshore patrol ships, the first scheduled to be completed under the contract are seen as critical to securing Canada’s Arctic security and sovereignty. Melting sea ice and increased traffic in Canada’s arctic is a key catalyst for the move.

The ships will help enforce laws, and above all, will constitute a very real practice of territorial sovereignty challenged by other custodians of the high Arctic. Patrol craft, new coast guard vessels, and a new polar icebreaker constitute only a small part of the grand total, the replacement of aging destroyers and frigates is expected to consume the lion’s share of the money.

However, timeline projections have already been beset by a series of revisions, with the first announcements pegging the arrival of the first batch of ships first for 2015, then moved to 2016, and now expected three years after that, for 2018.

The Burn of the Not-too-Recent Past

While it may be easier to buy military hardware than actually building it, the Royal Canadian Navy has had to face disappointment and moves for trans-Atlantic litigation stemming from past procurement deals – best exemplified by the United Kingdom’s sale to Canada of four Upholder/Victoria Class diesel-electric submarines in a 1998 deal, for a supposed bargain of $750 million.

The F-35 jet deal is another example of procurement policies gone awry, according to the Parliamentary Budget Officer Kevin Page. However, the F-35 deal was likely informed by overriding continental strategic considerations, pressure and geographic proximity to the United States. In the end, both the Harper Government and the Canadian public continue to watch closely as the issue develops, each hoping that the jets will live up to their high promises at, or at least near, to their productions, delivery, outfitting and servicing costs.

The procurement policies of the F-35 aircraft have also faced setbacks.

Financing

The procurement policies of the F-35 aircraft have also faced setbacks.

In July of 2012, Ottawa announced an initial 9.3-million dollar contract for Irving Shipbuilder to undertake the initial steps of ship design as part of a related “Canada First” defence strategy.

It should be emphasized that the 35-billion dollar figure is at best an estimate that will be subject to change and revision. The final monetary scale of the project could range from anything between 30 billion to the 35-billion dollar marked.

If the 1980s procurement for Halifax-class frigates is any indication of evolving shipbuilding deals (an original deal where twelve of eighteen frigates were built), the 35-billion dollar announcement is unlikely to remain without a downward reassessment.

British Columbia’s Seaspan Marine Corporation will construct vessels totalling 8-billion for eight non-combat vessels. On the other hand, Halifax’s Irving Shipbuilding was awarded about 25-billion of the total for twenty-one combat vessels; considering the history of shipbuilding financing and the post-2008 budget deficit reality, it is likely that of the two, it will be Irving Shipbuilders which will feel revisions most sharply.

Addressing Sector-Specific Boom-Bust Cycles and Investing in Skilled Jobs

Shipbuilding in Canada has experienced a classic boom and bust cycle since time immemorial. With the last national shipbuilding enterprise dating back to the 1990s, the 2012 announcement has been touted as an attempt to address swings in coastal economies and their respective labour markets. The Minister of Public Works and Government Services estimated that the deal should produce around 15,000 new jobs nation-wide over a period of twenty to thirty years. More importantly, the jobs will be of the high-skill variety, which more often than not, comes with a lot more than a living wage.

However, the supposed predictability of monetary inflows into the Maritime and coastal British Columbian communities is likely to turn out to be an illusion. Assuming that no external developments in the foreign affairs sphere spurs on a sudden expansion of the Royal Canadian Navy, thus sustaining the 35-billion mark if not resulting in new deals, the 35-billion deal will remain at the mercy of exogenous shocks in the world economy, the nation’s fiscal reality, and Ottawa’s political will.

It is in 2012, when the dividends of the October 2011 announcement have been cashed in, both for the Conservative Party and the affected politicians, the incentive to renege, renegotiate, and adjust – especially under conditions of uncertainty and weak growth – become increasingly greater. Although this dynamic does not guarantee downward adjustments, it does point out that robust, long-term national strategies are inevitably beset by an ever-changing fiscal and economic reality, to say nothing of developments in foreign affairs.

Milosz Zak is an MA ERES candidate at the University of Toronto’s Munk School of Global Affairs, with a BaH in Political Science from the University of Guelph and the Jagiellonian University in Krakόw, Poland. He works closely with the Toronto Chapter of the Canada Eurasia Russian Business Association, the Canada-Poland Chamber of Commerce of Toronto, and the G8/G20 Research Group, writing on financial and economic issues facing the G20, European Union member states, the Russian Federation and the countries of the CIS.

Any views or opinions expressed in this article are solely those of the authors and the news agencies and do not necessarily represent those of the Atlantic Council of Canada. This article is published for information purposes only.

This article appeared in its original form and was cross-posted by permission from The Atlantic Council of Canada.

Swarms at Sea and Out-swarming the Swarms?

The Swarming Synchronized Speedboats of Iran’s Revolutionary Guards Corps Navy Revue

This week Foreign Policy posted a new article by Navy Postgraduate School professor John Arquilla, in which he discusses the how “swarm” tactics employed by the Russians caused the failure of Napoleon’s 1812 invasion.

Arquilla is a prolific author who regularly writes about swarms and “net-centric” operations.  In the above piece he cites successful maritime employment of swarm tactics such as German submarine “wolf-packs” in the Second World War and the Sri Lankan Navy’s fight against maritime elements of the Liberation Tigers of Tamil Eelam (LTTE, or “Tamil Tigers”) earlier this decade.

It is unclear how Arquilla’s example of the Russian defeat of Napoleon is applicable to a broad range of operations at sea, however.  When swarms are discussed in terms of maritime operations, it is generally in the context of an asymmetric fight within a constrained body of water, such as Iranian plans to use swarms of small boats or the Chinese Type 22 Houbei fast attack craft.  Napoleon’s Grand Armee was vulnerable to Russian swarm attacks on the march back from Moscow because of its extended supply lines.  In contrast, one of the primary advantages of sea power is that it provides the space for strategic maneuver and the ability to avoid such exposure to swarms.  Swarms and Anti-Access/Area Denial (A2AD) weapons and tactics could still threaten naval forces within specific areas in which the ability to maneuver is restricted, or are within the range of weapons on land, but they do not take away one of the main advantages of sea power, the ability for a state to choose where to best deploy its forces.

Lieutenant Commander Mark Munson is a Naval Intelligence Officer and currently serves on the OPNAV staff. He has previously served at Naval Special Warfare Group FOUR, the Office of Naval Intelligence and onboard USS ESSEX (LHD 2). The views expressed are solely those of the author and do not reflect the official viewpoints or policies of the Department of Defense or the U.S. Government.

Fostering the Discussion on Securing the Seas.