INDONESIA has hit back at reports Australia will slash its foreign aid program in next week’s budget, saying it doesn’t need our money and is not asking.
INDONESIA has hit back at reports Australia will greatly wind back its foreign aid program in next week’s budget, saying it doesn’t need our money and is not asking.
Speaking to reporters in Jakarta about the departure of ambassador Paul Grigson yesterday, Indonesia’s Foreign Ministry spokesman Arrmanatha Nasir said “it is what it is”.
“As I have said on many occasions, the Indonesia and Australia relationship is an important partnership, not only for Indonesia, but I believe for Australia,” he told AAP.
Mr Nasir said Indonesia would not be concerned if Canberra cuts aid in next week’s federal budget. “Indonesia at the moment is no longer a country that needs aid for development,” he said.
It comes as new polling commissioned by the Lowy Institute found Australians have a strong preference for a restrained diplomatic response from the Australian government to the executions of Andrew Chan and Myuran Sukumaran.
Only 28 per cent of those surveyed supported suspending Australian aid projects, and a minority (42 per cent) supported Australia recalling its ambassador.
The course of action most preferred was ‘private diplomatic protests’, with 59 per cent agreeing with this approach. Trade sanctions were the least supported action, with just 24 per cent agreeing.
The poll results also suggest that the executions will have little impact on Australians’ travel plans, buying habits or business dealings with Indonesia. More than three quarters (76 per cent) said business between the two countries should continue as normal.
Nearly three quarters (71 per cent) said it would make no difference on whether they bought Indonesian products, while 63 per cent said it would not affect their decision to travel to Indonesia.
Australia’s $600 million foreign aid budget to Indonesia is widely expected to face the axe in Treasurer Joe Hockey’s second budget next Tuesday. In 2013/14, Australia sent $581 million to Indonesia. The 2014/15 budget estimate puts that figure at $605.3 million.
Last week, Foreign Minister Julie Bishop did not rule out the prospect of reducing our contribution to Indonesia, which is the largest recipient of Australia’s foreign aid budget. Australia is the second largest donor behind Japan.
In his first budget Mr Hockey sliced $7.6 billion over five years, overturning Labor’s commitment to peg aid spending at 0.5 per cent of national income.
There was a second sting in December when the midyear budget review took another $3.7 billion over four years, including an unprecedented $1 billion cut for the 2015/16 financial year.
AAP reports the Department of Foreign Affairs and Trade is developing aid investment plans for all country programs by July. It is understood diplomatic posts have been asked to prepare both 40 per cent and 20 per cent aid cut scenarios.