The trilateral defense and security pact between Australia, the United Kingdom, and the United States has strong impact to the security dynamics in the Indo-Pacific area. This agreement entails a strengthened alliance between Australia and enhanced military collaboration with the United States and the United Kingdom resulting in regional volatility. This paper aims to examine the AUKUS (Australia–United Kingdom–United States Partnership) agreement and the resulting ensuing instability in the Indo-Pacific region, specifically from Indonesia’s perspective. The focus of the research is on the interplay between Indonesia’s diplomacy capability and the military functions of the Indonesian Navy as security policy. This study employs a qualitative approach to delve into in-depth insights into the evolution of AUKUS in the Indo-Pacific region, which triggered a series of responses from many countries subsequent to the announcement of the establishment of the AUKUS Defense Pact. The AUKUS establishment simply reinforces the notion that geopolitical tensions are pulling the area apart. The influence of the AUKUS-China war can jeopardize regional stability since the US and China continuously demonstrate the supremacy of their armaments in order to dissuade one another. The AUKUS-China contest has had a highly adverse impact on Indonesia. This article argues that the Indonesian Navy’s diplomatic prowess is crucial because it has the potential to play a big influence in the Indo-Pacific region’s international political dynamics concerning the South China Sea. Furthermore, the Indonesian Navy must proactively prepare for potential armed conflicts in Indonesian territorial seas by developing a comprehensive maritime policy during times of peace, leveraging its geographical advantages.

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