This paper examines Indonesia's vulnerability to climate change, and her position in the global climate change mitigation effort as a significant emitter with large potential for reducing emissions from forestry. It highlights the scope for Australia and Indonesia - both large emitters, one a developed country and potential buyer of emissions permits, the other a developing country and potential seller of permits - to play complementary roles in the global effort. The discussion outlines ways in which the two countries can cooperate with each other and with regional neighbours in mitigation initiatives and climate change adaptation. It suggests that their efforts could serve as a model for cooperation between developed and developing countries. The paper notes that the current global financial crisis is a short-term problem, while climate change has its effects over the long term. The recessionary effect of the financial crisis is not a good reason for delaying climate change mitigation efforts by Indonesia and other countries.