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For reasons of geography and demography, Indonesia is no less important to Australia in Asia than China, India and Japan.

With almost 2 million square kilometers of area, Indonesia is the largest and most populous country in Australia’s neighborhood, occupying a strategic position astride its northern approaches through which much of Australia’s trade passes. It is also the world’s 15th biggest economy in purchasing power parity (PPP) dollars with a GDP of $1.2 trillion. Indonesia’s GDP has overtaken Australia’s and its population (237 million) is now more than 10 times bigger.

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