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Foreign Aid In Australia And Indonesia

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Introduction In today’s society, International Relations is prime to the economic, social and political development and stability of nations - especially relations with political neighbours. Australia and Indonesia are two such countries - two major political powers in the Asia-Pacific region. One of the key areas of interest in international relations is the imperative issue of foreign aid - important to both Australia and Indonesia to maintain such a large country both in terms of size and population. However, recent diplomatic conflicts have tested relations between the two countries and have created a range of problems, particularly in the area of transfer of foreign aid. On this episode of Investigation Pacific, we will discuss …show more content…

Through this international exchange of aid, both countries can benefit greatly in terms of sustaining its economy and delivering to its peoples interests. Assistance to Indonesia So what actually makes up the foreign aid that is transferred to Indonesia? Australian aid to Indonesia is predominantly based on its economic and political interests – rather than the interests of the Indonesian public. This choropleth map shows the geographical allocation of Australian foreign aid in the year of 2012. As you can see, Indonesia marked in red is the largest recipient of Australia’s foreign aid program, receiving an estimated 137 million US Dollars of Official Developmental Assistance annually. The primary reason for this is the fact that Indonesia, while being one of Australia’s closest political neighbours, is also one the most populated countries in the developing world. Figure 1.1 – Percentage of Australian Foreign Aid given by Region to Indonesia Province/Region Approximate Percentage of Aid Jakarta 7.8 East Java 24.7 Yogyakarta 2.2 West Java 18.3 Bali 12.5 Sumatra 4.8 Other 30.7 As you can see in this set of data, a substantial portion of the aid given is linked to Australia’s economic interests in Indonesia – mainly in the provinces of Java and …show more content…

The issue of drug smuggling is a major cause of the conflict in international relations between the two countries. After nearly a decade of indecision over the fates of convicted heroin traffickers; Myuran Sukumaran and Andrew Chan, in February 2015, incumbent president Joko Widodo made the decision to refuse clemency of the two prisoners to create a ‘case’ for his ‘hard-line’ policies. As a consequence of the resulting executions of the prisoners, the Australian government has taken steps to breaking its international relations with Indonesia – largely as an emotional rather than political response. Secondly, people smuggling and refugees is a primary determiner of the conflict between Australia and Indonesia. From 2001 onwards, this has become a big issue in both countries, with the increased flow of migrants by boat trying to seek asylum in countries either for a better life or to avoid persecution in their countries of origin. In Australia, the problem has been that of determining between the statuses of the two types of asylum seekers. Since Tony Abbott came into power with his ‘stop the boats’ policy, he has mandated the strict enforcement of the detention of asylum

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