Indonesia Foreign Relations - Australia
The most problematic of Indonesia’s neighborly relations are those with Australia. The tension inherent in the population differential between the two countries in such close geostrategic proximity is exacerbated by their very different political cultures. Criticism of Indonesia under Suharto in the 1980s and 1990s by the Australian press, academics, and politicians provoked angry retorts from Jakarta. More recently, East Timor and Papua have been the primary irritants in the bilateral relationship. Since 1975 Australia had served as one of the primary locations for the East Timorese diaspora, and many Indonesians suspected Australia of wanting to break up the country by supporting East Timor’s independence movement, including during the 1999 referendum.
For many Indonesians, these suspicions were confirmed when Australian troops were the first to arrive in Dili in September 1999 and made up the largest contingent within INTERFET, which was commanded by an Australian. Indonesian fears that Australian attention had turned to Papua once Timor-Leste achieved independence were heightened when Australia granted temporary protection visas to 43 Papuan asylum seekers who landed on Cape York Peninsula in northeastern Australia in January 2006, a decision denounced by Jakarta in harsh terms.
The victimization of Australians in the first Bali bombing in 2002 and the Australian Embassy bombing in Jakarta in 2004 did not elicit substantial Indonesian public sympathy, although the Indonesian government did allow for significant assistance by Australian crime investigators. Bilateral relations were particularly poor under Prime Minister John Howard because of his close relationship with President George W. Bush, illustrated by Howard’s strong support for the war in Iraq and the persistent misperception that he had once stated that Australia was America’s “deputy sheriff” in Asia. The implicit long-term Indonesian “threat,” as it appeared in Australia’s defense-planning documents, underlined a latent suspicion in Jakarta that Australian policy toward Indonesia was based on fear, not friendship. This perception had to be constantly allayed by official Australian visits to Jakarta, and it was the driving force behind the signing of a bilateral security pact in 2006.
Australian Prime Minister Rudd's 13-14 June 2009 visit to Indonesia highlighted the overall positive relationship between the two countries. PM Rudd and President Yudhoyono agreed on a broad range of political, economic and development initiatives. A few minor mishaps--including mistranslation of Yudhoyono's comments on Australia's travel warning--marred the otherwise successful visit. Australian Prime Minister Kevin Rudd visited Jakarta June 13 and met Indonesian President Susilo Bambang Yudhoyono and range of other government and civil society leaders. He also traveled to Aceh on June 14. This was his most extensive Indonesia trip since taking office.
On the economic front, Rudd and Yudhoyono agreed to promote Australian direct investment in Indonesia and signed a five-year development partnership. Rudd spoke of the shared goal of reducing trade barriers, and stated that concluding the Australia-New Zealand-ASEAN Free Trade Agreement is a priority for his government. The two leaders also inked an MOU establishing an Indonesia-Australia Forest Carbon Partnership. The Partnership will provide for cooperation and capacity building in forestry policy development. It will also assist Indonesia develop a national forest carbon accounting and monitoring system.
Indonesia and Australia signed a military cooperation agreement in 2009. Australian Defence Forces (ADF) Commander Air Chief Marshal Allan Grant Houston and Indonesian Armed Forces (TNI) Commander General Djoko Santoso signed the "Statement of Joint Understandings" at a ceremony at TNI headquarters in Cilangkap, located south of Jakarta, on January 12. Speaking to the press after the signing ceremony, Santoso and Indonesian Defense Minister Juwono Sudarsono said the agreement covered cooperation in counterterrorism, maritime security, intelligence, peacekeeping exercises and disaster relief. Activities provided under the agreement would include operations, training, personnel exchanges and surveillance. Houston said the statement supported the Lombok Treaty, a framework bilateral agreement signed in November 2006, and showed that Australia was "committed to working with Indonesia as a partner to build a secure and peaceful region."
Prime Minister Kevin Rudd launched the Indonesia Country Strategy in Jakarta on 05 July 2013. This country strategy takes forward the objective of the Australia in the Asian Century White Paper: for Australia to build stronger and more comprehensive relationships with countries across the region. Indonesia has always been strategically important to Australia. However, in an increasingly multi-polar world, where large regional powers will grow in political and economic significance, Indonesia’s strategic importance is set to increase. Indonesia is a valued partner for Australia in negotiating the global economic agenda of the G20. It is an important fellow player in the United Nations and in the region, including in the East Asia Summit and APEC. Indonesia continues to play a strong regional leadership role in ASEAN.
Australia’s aid program, delivered primarily through the Australian Agency for International Development (AusAID), will help Indonesia strengthen its national systems and invest in services and infrastructure. Australia is a long-term partner for Indonesia and is committed to helping the country achieve its development objectives. In 2012–13, we provided $541.6 million in aid to Indonesia; this figure would grow to $646.8 million in 2013–14.
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