Aid to Indonesia

Why we give aid to Indonesia

  

Australia is supporting Indonesia's national efforts to alleviate poverty.

Photo: Josh Estey, AusAID

Indonesia is one of Australia’s closest neighbours and continues to face increasingly complex development challenges. Like other developing countries, Indonesia has had recent success achieving economic growth but is still afflicted by poverty. An Indonesian woman is 30 times more likely to die in childbirth than an Australian woman and one in three children under the age of five suffer from stunting, caused by malnutrition. About 120 million Indonesians do not have access to safe drinking water while about 110 million do not have adequate sanitation.

More than 120 million Indonesians live on less than $2 per day. Indonesia remains vulnerable to shocks, like a natural disaster or an economic downturn, that could have devastating effects. Much more work needs to be done to open up opportunities for the poor, ensure all children receive a basic education, drive health care reform and create key infrastructure.

Australia and Indonesia have an effective development partnership that is improving health and education outcomes, boosting economic growth, providing support to protect the poor and vulnerable and strengthening democracy, justice and governance. Maintaining and growing this partnership remains a high priority for Australia. Owing to Indonesia’s size and proximity to Australia, increased prosperity, stability and growth in Indonesia are in the interests of both our nations as well as the broader region.

The close partnership between the two countries guided the development of the Australia Indonesia Partnership Country Strategy 2008–13, which plans for the future by consolidating past achievements and looking at lessons learned.

The Country Strategy, a comprehensive plan of Australia’s support for Indonesia, follows the $1 billion Australia Indonesia Partnership for Reconstruction and Development program (AIPRD), which articulated Australia’s long-term commitment to Indonesia’s development. The AIPRD funding supported not only tsunami-devastated Aceh, but also large-scale development programs in other parts of Indonesia. As agreed between the Governments of Indonesia and Australia, there will be a single framework for all programs under the Australia Indonesia Partnership.

The goal of Australia’s partnership with Indonesia is to work towards achieving sustainable poverty alleviation by contributing to development outcomes outlined in Indonesia’s Medium Term Development Plan (Rencana Pembangunan Jangka Menengah—RPJM) 1.

Last reviewed: 21 June, 2012