A new centre at Monash University will investigate ways to strengthen Australia’s bond with Indonesia through research and business collaboration.

The Federal Government announced this week that it will put up $15 million over four years to start the Australian Centre for Indonesia Studies. It is hoped that the centre can create mutual research goals and positive professional business arrangements between the two nations.

The Centre will be based at Monash in Melbourne but will be extended to nodes at the University of Melbourne, the Australian National University and Australia’s peak scientific research agency, CSIRO.

The project will operate on both sides of the international line, aiming to update Australians’ perceptions to build trust and understanding of Indonesia. It will also work collaboratively with Indonesian institutions and companies on areas of shared challenge and mutual benefit.

Announcing the project after his visit with Indonesian President Susilo Bambang Yudhoyono, Prime Minister Tony Abbott said: “Indonesia is in many respects Australia's most important overall relationship. Strong relationships are based on mutual knowledge and understanding, which is why this centre will make such an important contribution. The centre's mandate will be to strengthen and deepen Australia-Indonesia business, cultural, educational, research and community links. The centre will also promote greater understanding of contemporary Indonesia and its growing importance to Australia. The Commonwealth will provide $15million over four years starting in 2013-14, funded from the Education portfolio and matched by partner institutions and private sector funding.”

Language and culture, food security, infrastructure, education, resources and health will be among the themes for studies at the Centre.

Professor Ed Byrne, Vice-Chancellor and President of Monash University said: “What is really exciting is that this new national centre will foster high-value linkages between government, business and academia. This is the best way to develop big, high-impact innovations. It is also the best way to build trust and create an environment for genuine partnerships.”

Chief Executive of CSIRO, Dr Megan Clark, said: “CSIRO is delighted to join Monash and our Indonesian and Australian partners in this centre, which will be vital to the future of our region... CSIRO brings its global networks and track record for delivering economic development in agriculture, fisheries, telecommunications, mining... expertise in biosecurity, water and climate adaptation to help address national challenges in Indonesia and the region.”