Australia is a former British colony. From its first establishment as a federal colony in 1901 to 1942 Australian foreign policy was still governed by the British. Until World War II when Japan began to intensively attack the countries in Asia Pacific, Australia began to feel threatened in addition to Singapore, the British colony that fell into the hands of Japan. As Britain withdrew from Singapore and began to engage with war in Europe, Australia began to align itself with the United States to prevent attacks from Japan. Post-World War II Australia began to realize that its interests were different from the western countries and began to realize its geographical position is different from the western countries, therefore Australia has a different enemy from the western countries. Since then Australia began to focus on the its neighbors countries. Until 1997 Autralia with India, Kenya, Mauritius, Oman, Singapore and South Africa established a regional cooperation, the Indian Ocean Rim Association (IORA). Australia and other countries in the Indian Ocean region saw the potential of the Indian Ocean, until finally they decided to establish IORA. IORA was formed to enhance economic cooperation in the Australian region. This study discusses Australia's interests in the IORA. Australia's interests eventually decided to establish IORA influenced by domestic conditions, economic and military conditions, and international contexts.