Advancing Indonesia Malaysia Ties In Pivotal Asean Year

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In 2025, Indonesia and Malaysia are celebrating 68 years of diplomatic relations – a relationship characterised by profound historical, cultural, and economic ties.
The anniversary also coincides with Malaysia's Asean chairmanship, providing a strategic opportunity for the two nations to enhance collaboration, strengthen mutual interests, promote regional stability and work towards common goals within Asean.
Economic and labour relations: Strengthening foundations
Labour cooperation remains an important sector between the two countries. In 2022, the two governments signed a memorandum of understanding on the Placement and Protection of Indonesian Domestic Workers, highlighting a significant step in labour relations.
It created the One Channel System for proper recruitment and placement of domestic workers as well as transparency and accountability in the recruitment and placement process.
In 2022, the two governments signed a memorandum of understanding on the Placement and Protection of Indonesian Domestic WorkersThis new system encourages a minimum wage and minimum working hours with days off; it prohibits the withholding of passports, decreasing avenues for abuse while increasing avenues for successful placements.
The next crucial step is to finalise a second MOU aimed at formal-sector employment, currently in progress, to further solidify labour relations and enhance opportunities for both nations. The legal protections for workers in all sectors, including construction, manufacturing, and services, are essential as demand for Indonesian workers continues to increase in Malaysia.
For instance, these efforts include enforcing labour laws more stringently, enhancing access to housing and healthcare, and creating grievance redressal mechanisms. It is imperative to address the root causes of irregular migration through inclusive economic development and fair recruitment systems, underscoring the critical need for sustainable solutions in labour practices.
This cooperation must prioritise sustainability and equity, hinging on a balanced approach that upholds human dignity while meeting the demands of labour markets, ensuring ethical practices, and mutual benefits for both countries.
Asean leadership and regional vision
As founding members of Asean, Indonesia and Malaysia have always been in the nexus of Southeast Asia's regional architecture. Thus, with Malaysia slated to lead Asean in 2025, the two countries can work together towards Asean's digital transformation agenda, food security, intra-Asean trade, and green economic recovery.
For example, the Indonesia Digital Roadmap is aligned with Asean's Digital Master Plan. In addition, Malaysian Prime Minister Anwar Ibrahim experienced that with increasing geopolitical tensions and complications - especially regarding the South China Sea - strengthening Asean centrality is important.
Indonesia has backed Malaysia's chairmanship, demonstrating support for a more unified Asean stance on critical issues such as the humanitarian crisis in Myanmar.
In tandem, Indonesia and Malaysia can help catalyse consensus on conflict resolution, humanitarian assistance, and political reform, cementing Asean as a credible force for peace and diplomacy.
Navigating complexity amid opportunity
Specific challenges, including occasional maritime border disputes, persistent environmental issues like transboundary haze, and cultural controversies, pose complexities to the bilateral relationship.
In addition, a shifting political and economic agenda with new leaders in both countries from time to time, as well as a change in focus from economic integration, suggests that future relations could be on shaky ground.
Thus, consistent negotiation and the need for powerful institutions to facilitate partnership remain.
The strong personal bond between President Prabowo Subianto and Anwar establishes a positive foundation for bilateral progress and collaboration. Prabowo's two highly publicised visits to Malaysia in January 2025 are a testament to mutual commitment towards bilateral development and regional solidarity.
To conclude, as Indonesia and Malaysia celebrate 68 years of diplomatic relations, both countries find themselves at a pivotal moment of opportunity. With Malaysia as Asean chair, both countries have a unique platform on which to deepen strategic alignment, strengthen labour reforms, and strengthen peace in the region.
By fostering trust, promoting inclusive dialogue, and implementing people-centred policies, Indonesia and Malaysia can exemplify a model of enduring partnership for the rest of Southeast Asia.
For example, the success of the Joint Border Development Programme in Kalimantan will foster peace and cooperation between the two countries, while the Asean Youth Forum could serve as a dialogue platform for the next regional leaders.
Additionally, enhancing economic cooperation through initiatives like the Asean Economic Community can further solidify the relationship between Indonesia and Malaysia. By prioritising sustainable development goals and addressing common challenges together, both countries can set a positive example for the entire region. - Mkini
JOPKIE KURNIAWAN is minister counsellor for political affairs at the Embassy of the Republic of Indonesia in Kuala Lumpur.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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