Chapter 3 Indonesia
Country overview
3.1
The Republic of Indonesia is an archipelago located in South-East Asia, straddling
the equator and comprising 17,508 islands (6,000 of which are inhabited), which
cover 1.9 million square kilometres and three time zones. Indonesia
occupies a strategic location astride or along major sea lanes from the Indian
Ocean to the Pacific Ocean. A map of Indonesia is at Appendix B.
3.2
Indonesia is the world’s fourth most populous country with 242 million
people, and is the largest Muslim-majority nation (over 86 per cent of the
population are adherents of Islam).
Political overview
3.3
Indonesia is a unitary state, headed by a President and Vice President
who are directly elected for a five-year term by popular vote. The President
and Vice President govern with the assistance of an appointed Cabinet.[1]
3.4
Indonesia’s 692-member People’s Consultative Assembly (Majelis
Permusyawaratan Rakyat or MPR) is the primary national representative body
and is comprised of two houses:
n a 560-member House of
Representatives (Dewan Perwakilan Rakyat or DPR), elected by
proportional representation for five-year terms, with the authority to make
legislation, determine the budget and oversee the implementation of legislation
by the Cabinet; and
n a 132-member Regional
Representative Council (Dewan Perwakilan Daerah or DPD), with four representatives from each of Indonesia’s 33
provinces, and responsibility for the oversight of regional matters.
3.5
Indonesia is the third most populous democracy in the world, after India
and the United States. A robust media and civil society, combined with direct
and fair elections, are at the heart of Indonesia’s maturing political
institutions. Since Indonesia’s transition to democracy began in 1998, more
than 600 direct popular elections have been held in 450 provincial and local
governments. Direct elections are now held at all levels of government — sub-district,
district, provincial and national levels. Indonesia has also undergone a process
of decentralisation since 1999, which has seen control of large amounts of
public expenditure and service delivery transferred from the central government
to provincial and local governments.
3.6
The President, His Excellency Dr Susilo Bambang Yudhoyono, was elected
to a second and final five-year term in presidential elections held in July
2009. Receiving around 61 per cent of the national vote and winning
ballots in 28 of 33 provinces, President Yudhoyono was the first Indonesian
president to be re-elected to office in free and fair elections.
3.7
Indonesia held parliamentary elections on 9 April 2009 for the DPR, DPD,
provincial legislatures and district councils. President Yudhoyono’s Democrat
Party received the largest share of the vote, with approximately 21 per cent of
the national vote, and secured 26 per cent (148) of DPR seats. The Golkar Party
and the Democratic Party of Struggle (PDI-P) each won around 15 per cent of the
popular vote—107 and 94 seats respectively. Islamic-oriented parties, though
their overall share of the national vote continued to decline, took the next
four places, with the Prosperous Justice Party (PKS) winning around eight per
cent (57 seats). New parties, Gerindra and Hanura, led respectively by former
generals Prabowo Subianto and Wiranto, won approximately 5 per cent (26 seats) and
4 per cent (17 seats) each.[2]
3.8
Voting in Indonesia is non-compulsory but voter participation is among
the highest in the world. Democratic elections would seem to be ushering in
generational change, with 63 per cent of Indonesian parliamentarians now under
the age of 50, and some 18 per cent of parliamentarians are women, up from 10
per cent in 2004.
3.9
The 2009 elections took place on a vast scale. There were 171,068,667
registered voters from 33 provinces, 489 districts and 77 electoral districts.
The elections were widely judged to be free and fair, and were largely free of
violence. The elections are said to have marked another important milestone in
Indonesia’s successful transition to a vibrant, open democracy. The next round
of national and presidential elections will be held in 2014.
Economic overview
3.10
In 2012 Indonesia’s Gross Domestic Product (GDP) was estimated to be US$878
billion. Indonesia’s GDP per capita rose from $922 in 2002 to $3,563 in 2012. Indonesia
grew by more than six per cent annually over 2010-13 and is forecast by the World
Bank to grow by 6.5 per cent in 2014. The inflation rate in 2012 was 4.3 per
cent.[3]
3.11
The Indonesian Government plays a significant role in the economy. There
are some 139 state-owned enterprises and the Government administers prices for
several basic goods, including rice, fuel and electricity.
3.12
Indonesia’s main industries include petroleum and natural gas, textiles,
automotive, electrical appliances, apparel, footwear, mining, cement, medical
instruments and appliances, handicrafts, chemical fertilizers, plywood, rubber,
processed food, jewellery and tourism.
3.13
Indonesia’s main exports include oil and gas, electrical appliances,
plywood, textiles and rubber. Imports include machinery and equipment,
chemicals, fuels and foodstuffs.
3.14
Indonesia’s principal export destinations in 2011 were Japan, China,
Singapore, the US, South Korea, India and Malaysia. The principal import sources
were China, Singapore, Japan, South Korea, the US, Thailand and Malaysia.[4]
In 2012, Indonesia experienced a current account deficit of 2.7 per cent of GDP
or US$24.2 billion. This compared with a 0.2 per cent surplus in 2011.
3.15
The 2013 Budget, which was passed by the Parliament in October 2012, committed
to expenditure of US$181 billion, an increase of 13.5 per cent on 2012. A
budget deficit of 1.7 per cent of GDP was forecast and Government debt was
predicted to be 25 per cent of GDP. The Budget featured a significant increase in
infrastructure spending, to US$23.2 billion. However, fuel subsidies (petrol,
diesel, and LPG) accounted for $20.8 billion, or 11.5 per cent, of the Budget.[5]
3.16
President Yudhoyono’s Administration has managed to achieve many of its
fiscal targets. These include a significant drop in debt-to-GDP from 61 per cent
in 2003 to 24 per cent in 2012, a budget deficit below three per cent of GDP,
and historically low rates of inflation.
3.17
During the global financial crisis Indonesia outperformed other regional
countries and, in 2009, was the third fastest growing economy in the G20. Fitch
and Moody’s upgraded Indonesia’s credit rating to investment grade in December
2011.
3.18
The Government has developed a Master Plan for the Acceleration and
Expansion of Indonesia’s Economic Development 2011-2025, which aims for
levels of growth that will allow Indonesia to become one of the ten largest
global economies by 2025. The Master Plan, which envisions the creation of a
‘self-sufficient, advanced, just, and prosperous Indonesia’, targets
investments of $468 billion over the period to 2025, of which 45 per cent is
intended to be in infrastructure. One-fifth of the total investment is expected
to come from Government, with the rest funded through private investment or by
foreign direct investment through public private partnerships.[6]
3.19
The Master Plan consists of three principle strategies, listed below,
and requires sustained annual growth rates of between seven and nine per cent
in order to achieve the overarching objective:
n developing the
regional economic potential in six Indonesia Economic Corridors: Sumatra
Economic Corridor, Java Economic Corridor, Kalimantan Economic Corridor,
Sulawesi Economic Corridor, Bali – Nusa Tenggara Economic Corridor, and Papua –
Kepulauan Maluku Economic Corridor;
n strengthening
national connectivity locally and internationally; and
n strengthening human
resource capacity and national science and technology to support the
development of main programs in every economic corridor.
3.20
The Plan will seek to encourage large scale investments in 22 main economic
activities, which include transportation equipment, shipping, ICT, tourism, fisheries,
steel, coal, defence equipment and timber.
3.21
Impediments to the Plan’s achievement that have been identified include
the following: there are currently only a limited number of domestic industries
which focus on products with added value; significant regional inequalities; the
provision of adequate infrastructure across the archipelago; and the challenges
presented by rapid urbanisation.
3.22
In addition to imbalances in the economic performance of the regions and
the need for improved infrastructure, two other significant economic challenges
include:
n continuing Government
spending on fuel subsidies, which as noted above consume some 12 per cent of
the Budget; and
n poor standards of
governance and continuing corruption which inhibit the climate for domestic and
foreign investment and thus limit growth.
Australia–Indonesia trade relationship
3.23
Two-way trade in goods and services between Australia and Indonesia was
valued at $14.8 billion in 2011, making Indonesia the 12th largest trading
partner for Australia and 11th largest export market. Australian investment in
Indonesia was worth an estimated $5.4 billion in 2011. Austrade estimates that
there are more than 400 Australian companies operating in Indonesia, in sectors
including mining, agriculture, construction, infrastructure, finance, health
care, food and beverage and transport.
3.24
Australia’s major exports to Indonesia include wheat ($1.1 billion in
2010-11), live animals ($291 million) and aluminium ($288 million). Major imports
from Indonesia include crude petroleum ($2.9 billion), gold ($433 million) and
wood ($149 million). Australia’s major services export is education-related
travel ($604 million in 2010) and the major services import is personal travel
($1.5 billion in 2010).
3.25
In November 2010 the Australian and Indonesia Governments announced that
negotiations would commence on an Indonesia-Australia Comprehensive Economic
Partnership Agreement (IA-CEPA). This followed the release of a Joint
Feasibility Study on an Indonesia-Australia Free Trade Agreement in April 2009
and the entry into force of the ASEAN-Australia-New Zealand Free Trade
Agreement (AANZFTA). It is expected that the IA-CEPA, which is still under
negotiation, will build on the outcomes of the AANZFTA.
3.26
The IA-CEPA is intended to address impediments to bilateral trade,
impediments to increasing Australian investment in Indonesia and Indonesian
investment in Australia, and ways to enhance economic cooperation in specific
sectors identified as key drivers of economic growth. The first round of
negotiations took place in September 2012.[7]
Development context
3.27
Notwithstanding its significant economic growth and progress in reducing
poverty, Indonesia has a range of significant development challenges. These
include inadequate infrastructure, corruption, a complex regulatory environment
and disparities in human development across the regions.
3.28
Indonesia ranked 121 out of 186 countries in the United Nations 2013
Human Development Index.[8] Twenty-nine million
people (12 per cent of the population) live below the national poverty line,
which was 249,000 rupiahs (A$27) per month in 2012, and some 120 million
Indonesians live on less than $2 per day.[9] Indonesia aims to bring
the poverty rate down to 7.6 per cent by 2015, in line with the UN Millennium
Development Goals.
3.29
Various indices illustrate the development challenges in Indonesia. More
than 61 per cent of the total population experiences undernourishment. The
maternal mortality rate is 228 deaths per 100,000 live births, which is some 30
times the equivalent rate in Australia. One in three children in Indonesia under
the age of five suffers 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. About half of all workers in Indonesia
only have a primary school education.[10]
3.30
Although classified as a middle-income developing country, many of
Indonesia’s provinces and districts are on par with low-income developing
countries. Economic and human development disparities remain across the
archipelago between provinces, between districts within provinces, and between
rural and urban areas. For example, per capita incomes are three to four times
higher in resource-rich regions such as Kalimantan, Sumatra and Papua compared
to resource-poor areas like Nusa Tenggara and Maluku.
Australian development assistance
3.31
Australia’s development assistance to Indonesia is the largest bilateral
program for the Australian Government and Australia is Indonesia’s largest
grant-based donor.
3.32
Australia will provide $2.5 billion in development assistance to
Indonesia over the period 2008 to 2013, including an estimated $541.6 million
in 2012–13. Estimated funding for 2013–14 will be $646.8 million. Most of
Australia’s Official Development Assistance is provided by AusAID ($508 million
in 2012–13), with the remainder ($32 million) provided by a range of other
Government Departments and agencies including Immigration and Citizenship,
Foreign Affairs and Trade, the Australian Centre for International Agricultural
Research, Infrastructure and Transport, Customs and Border Protection and the
Australian Federal Police.
3.33
Australia’s aid program in Indonesia has been guided by an Australia
Indonesia Partnership Country Strategy 2008–13.[11]
The Australian and Indonesian governments have agreed to extend the country
strategy until the end of 2014. This will allow the next strategy to align with
Indonesia’s Medium Term Development Plan. The Strategy’s outcomes are
consistent with the targets set under the Millennium Development Goals.
3.34
Some highlights of the program include:
n a $500 million Education
Partnership with Indonesia program, which is detailed further below;
n some 300 scholarships
a year (rising to 500 per year by 2014) for Indonesians to study in Australia;
n a $328 million
project to improve the national road network and bridges in eastern Indonesia;
n the provision of $215
million to support the Indonesian Government’s National Program for Community
Empowerment, which is aimed at reducing poverty by providing grants to
communities for high priority local projects;
n $180 million over the
next four years towards improving water and sanitation, which is detailed
further below; and
n initiatives to foster
people-to-people links and technical support to the Indonesian Government.
3.35
Among the achievements of the development assistance that has been
provided to date, AusAID lists the following:
n approximately 510,000
people have been provided with increased access to safe water, and around
110,000 additional people have been provided with access to basic sanitation or
a public toilet;
n more than 330,000 new
school places have been created by building or extending 2,000 junior secondary
schools; and
n access to
agricultural technologies has been provided to over 46,000 poor women and men.
Jakarta — Meetings and issues discussed
3.36
The delegation’s program commenced with a comprehensive briefing provided
by the Ambassador, His Excellency Mr Greg Moriarty, the Deputy Head of Mission,
Mr Paul Robilliard, Minister Counsellor (Political Economic), Mr Michael
Bliss, and Minister Counsellor (Development), Ms Jacqui De Lacy.
3.37
Issues discussed included Indonesia’s impressive record of economic growth,
the country’s development challenges, Australia’s aid program, climate change, the
Indonesian Government’s attitude towards various foreign and domestic policy
issues, negotiations for the Comprehensive Economic Partnership Agreement and a
possible prisoner exchange agreement, and the irritants which currently exist in
the relationship. Current challenges in the bilateral relationship were said to
include certain consular matters, people smuggling and the number of Indonesian
minors detained in Australia.
3.38
It was emphasised that Australia and Indonesia now enjoy a historically strong
and productive relationship. Comment was made on the highly constructive role
played by President Yudhoyono and Foreign Affairs Minister Natalegawa in
particular.
3.39
It was noted that Australia has a very substantial diplomatic presence
in Indonesia, with some 150 Australian and 450 locally engaged staff. Some 15
Australian Government departments and agencies are represented in the country. It
was pointed out that Australia makes a conscious effort to be a genuine partner
with Indonesia rather than to give ‘lectures’.
Committee for Inter-Parliamentary Cooperation
3.40
The delegation’s engagement with Indonesian parliamentarians commenced
with a discussion with the Committee for Inter-Parliamentary Cooperation (BKSAP)
of the DPR, which was chaired by Dr Muhammad Hidayat Nur Wahid. Dr H. Atte
Sugandi, a member of the BKSAP, also participated.
3.41
The functions of the BKSAP are to promote and develop friendly relations
between the DPR and parliaments of other countries, and the DPRs engagement
with multilateral institutions.
3.42
Dr Wahid commented that, while located in Asia, Australia can bring
valuable Western perspectives on issues and help show how the West and East can
work together. He complimented the Australian Parliament on its legislative
productivity.
3.43
Dr Wahid noted that consular matters were the issue in the foreign
affairs portfolio that most concerned Members of the DPR at present. It was
explained that this issue had traditionally been associated with Indonesian
unskilled workers overseas and Indonesians under sentence of death,
particularly in Saudi Arabia and Malaysia. The delegation was advised that, more
recently, Indonesian minors in detention in Australia had become a sensitive
issue among Indonesian parliamentarians.
3.44
The delegation expressed the view that the bilateral trade relationship
should be expanded and welcomed the views of Indonesian interlocutors on the
matter of Indonesians in detention in Australia.
3.45
The delegation noted that some improvements had been made to expedite
the processing of minors in detention, but that the Australian Government was
in discussions with the Indonesian Government to improve the process further.
It was suggested that Indonesia could assist by improving processes for
sourcing detainees’ identity documents.
3.46
The delegation offered to assist Indonesia by lobbying countries in
which Indonesians were on death row, to impose a moratorium on the death
penalty. It was argued that this could be in both countries interests.
Dr Wahid suggested that the delegation’s proposal be put through the
Speaker and the Inter-Parliamentary Friendship Group.
Figure 3.1 The delegation and Australia’s Ambassador, His Excellency
Mr Greg Moriarty, with the Chairman and members of the Committee for
Inter-Parliamentary Cooperation
![Photo of the delegation and Australia’s Ambassador, His Excellency Mr Greg Moriarty, with the Chairman and members of the Committee for Inter-Parliamentary Cooperation](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image001.jpg)
Commission VI
3.47
The delegation held discussions with the Chairman and members of
Commission VI, the Indonesian Parliament’s Committee on Trade, Investment and
Industry.
3.48
The members of Commission VI present for the discussion with the
delegation were:
n Mr Airlangga
Hartarto, Chairman of Commission VI (Golkar)
n Mr Ferrari Roemawi
(Democrat)
n Mr Emil Abeng
(Golkar)
n Dr Ir. H. Atte
Sugandi (Democrat)
3.49
Commission VI is one of 11 such commissions in the DPR and, as with the
others, its responsibilities include preparing the draft Budget in its
portfolio area in conjunction with the Government, determining the allocation
of the Budget for programs and activities for relevant departments and
institutions, and conducting inquiries and hearings.
3.50
Chairman Hartarto commenced his remarks by noting that Australia and
Indonesia were complementary economies and were not in direct competition. He
noted that Indonesia is resource rich and that economic growth is driven
primarily by domestic consumption. The Chairman noted that the pattern of
spending in Indonesia is quite different to other countries in that domestic
consumption doesn’t change markedly depending on the level of employment. It
was also noted that some 90 per cent of economic activity in Indonesia is
classed as non-formal.
3.51
The Chairman observed that the Indonesian economy had major
infrastructure challenges, required foreign investment and was facing
competition from Chinese products that had flooded the Indonesian market after
the signing of the China-ASEAN Free Trade Agreement (CAFTA). He remarked that
Indonesia had benefitted from economic instability in the United States and
Europe because investors were looking for opportunities in other markets,
including in Indonesia.
3.52
Mr Emil Abeng noted that several major Australian companies were
investing in Indonesia, particularly in the resources and finance sectors, but
small and medium sized enterprises (SMEs) less so. He noted that SMEs were the
backbone of the Indonesian economy, with almost 54 million non-formal
businesses in operation in Indonesia.
3.53
Mr Abeng explained that a focus for Commission VI was to enhance the
productivity of SMEs in order to fight poverty through entrepreneurship. He
hoped more Australian SMEs would look to invest in Indonesia, noting that
Indonesia is a large market for consumer goods, but acknowledged that legal
certainty and investment protection were essential for attracting investment.
Figure 3.2 The delegation
with the Chairman and members of Commission VI
![Photo of the delegation with the Chairman and members of Commission VI](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image002.jpg)
Figure 3.3 Mrs Joanna Gash
MP with a member of Commission VI, Dr H Atte Sugandi
![Photo of Mrs Joanna Gash MP with a member of Commission VI, Dr H Atte Sugandi](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image003.jpg)
3.54
The delegation agreed with the sentiment expressed by Commission
members, noting that the bilateral trade relationship appears to be
significantly underdone. Chairman Hartarto responded that once the AANZFTA was
complete, negotiation could commence on the Comprehensive Economic Partnership
Agreement with Australia which he hoped would facilitate knowledge and
technical transfers.
3.55
Mr Abeng noted that state-owned enterprises (SOEs) comprised 28 per cent
of GDP but need further reform to compete with the private sector. The
delegation was advised that Indonesia was focussed on ‘profitising’ its SOEs
through restructuring ahead of possible further privatisations.
3.56
Responding to the delegation’s question as to whether corruption and
legal uncertainty was deterring investment, Chairman Hartarto said
perception-based indices that rate Indonesia poorly on corruption and
ease-of-doing-business were misleading and do not reflect reality. He
acknowledged that corruption was an important issue for Indonesia to overcome,
but was not of such magnitude as to deter investors. The Chairman said the
proof of this was that many Australian companies that had invested in Indonesia
were doing well. He encouraged the delegation to speak to Australian businesses
operating in Indonesia, such as Newcrest Mining, Rio Tinto, Elders and the ANZ
Bank, on the realities of doing business in Indonesia. Chairman Hartarto stated
that Indonesia was committed to establishing a one-stop service for investors
to shorten investment lead times and to assist with overcoming government red
tape. He encouraged the delegation to promote investment in Indonesia among the
Australian public.
3.57
Delegation members indicated that while there is bipartisan support in
Australia for the live cattle trade to Indonesia, there is also a significant
level of public opposition to the trade and widely held concerns about animal
welfare. Members expressed the view that it was in both countries’ interests to
improve practices and standards at Indonesian abattoirs so as to ensure the
trade could continue. The Chairman remarked that he was glad that both
governments had cooperated to ensure the live cattle trade resumed quickly. The
delegation also noted that there clearly needs to be better communication and
dialogue by Australia with Indonesia in the future on such vital and sensitive
matters.
3.58
Chairman Hartarto said that Indonesia has a policy of attaining food
self-sufficiency, with sugar and rice being priorities, but noted that this was
not realistic for all products. The Chairman remarked that Indonesia
understands that food security and food self-sufficiency are two separate
issues. He noted that the Government is working to prevent agricultural land
from being built-out by factories and townships and was also seeking to
establish locations outside of Java for food production.
3.59
The Chairman noted that limited domestic salt production had become a
difficult issue for Indonesia. While there are many local suppliers, production
levels were low and they could not compete with large industrial producers
mainly in Australia. This was said to have negatively affected poor coastal
communities in East Nusa Tenggara (NTT) and East Java provinces. Staff from
Australian Embassy advised that a major Australian company was close to
finalising a salt mine in the NTT which, once established, would provide
opportunities for technology transfer and would increase domestic production of
salt.
3.60
It was noted that Australia and Indonesia would have an opportunity to
use capacity building efforts under the IA-CEPA to pursue the type of
assistance requested by Indonesia, particularly in the agriculture sector.
Commission I
3.61
The delegation held discussions with the Chairman and members of Commission
I, the Indonesian Parliament’s Committee on Foreign Affairs, Defence and
Information.
3.62
The members of Commission I present for the discussion with the
delegation were:
n Dr H Mahfudz Siddiq, Chairman
(PKS)
n Mr H Hayono Isman,
Vice Chairman (Democrat)
n Mr Muhammad Najib
(PAN)
3.63
Chairman Siddiq stated that while Indonesia’s democratic transition was ongoing,
the country was proud of its ‘journey of democracy’. He indicated that although
the elections in 2014, in which President Yudhoyono could not stand again, may
be more of a test for Indonesia’s nascent democracy than other recent
elections, there was ‘no road back’ to the authoritarian past. The Chairman
remarked that Indonesia’s democratic transition was still a work in progress,
noting that the country is still searching for the right balance on the extent
of freedom of expression, arguing that this issue has implications for the
integrity of the Indonesian state.
3.64
Chairman Siddiq observed that the recently passed State Intelligence Law
would support democratisation in Indonesia and help confront radicalisation.
The Law had been designed to make Indonesia’s intelligence agencies more
accountable and professional. Under the Law, Commission I would play a critical
oversight role of agencies’ activities and budgets. The Commission will
establish a select committee of 13 members to monitor and evaluate the
performance of the agencies. The select committee will have the power to summons
any person to account for their activities.
3.65
Comment was made on terrorist groups operating within Indonesia and
across the region that were radicalising followers, including in Indonesian
gaols. The Chairman stated that the Intelligence Law will enhance Indonesia’s
ability to counter terrorism, particularly through de-radicalisation. Chairman
Siddiq stated that mitigating the spread of terrorist ideology was a key
component of any sensible counter-terrorism strategy.
Figure 3.4 The delegation
with the Chairman and members of Commission I
![Photo of the delegation with the Chairman and members of Commission I](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image004.jpg)
3.66
The delegation enquired about Indonesia’s position on Myanmar and its
leadership in ASEAN. Chairman Siddiq responded that Myanmar had indeed been a
significant foreign policy challenge for Indonesia, particularly in its year as
ASEAN Chair.
Figure 3.5 Mr Michael Danby
MP with a member of Commission I, Mr Muhammad Najib
![Photo of Mr Michael Danby MP with a member of Commission I, Mr Muhammad Najib](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image005.jpg)
Figure 3.6 The Hon Laurie Ferguson MP with the Chairman of
Commission I, Dr H Mahfudz Siddiq
![Photo of Hon Laurie Ferguson MP with the Chairman of Commission I, Dr H Mahfudz Siddiq](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image006.jpg)
3.67
Indonesia believes there has been significant and genuine change in
Myanmar. Foreign Affairs Minister Dr Marty Natalegawa visited Myanmar recently
and had provided Commission I with a positive assessment of developments in the
country. Indonesia hoped that Myanmar’s turn to host ASEAN in 2014 could be an opportunity
to consolidate reforms. Chairman Siddiq noted that Myanmar’s transition was not
for ASEAN alone to manage. In particular, China had a critical role to play.
Other regional countries, including Australia, could also play an important
role in encouraging further progress and this would be welcomed by Indonesia.
3.68
Mr Najib stated that Indonesia aspired to play a positive role in
developments in the Middle East by providing an example of a successful
political transition to democracy. He noted that Indonesia’s links with
Middle-Eastern countries were reasonably strong, particularly with Egypt, where
many Indonesians had studied over the years. The delegation was informed that
the Indonesian Parliament has established a caucus of members interested in the
‘Arab Spring’. Indonesia was aware that its involvement in the political
transition in that region was less sensitive than that of Western countries,
which are often distrusted.
Australia-Indonesia Facility for Disaster Reduction
3.69
The delegation visited the Australia-Indonesia Facility for Disaster
Reduction (AIFDR), which was announced by former Prime Minister Rudd and
President Yudhoyono in 2008. The AIFDR is a $67 million five-year initiative
and represents Australia’s largest bilateral investment in disaster mitigation
and preparedness, and compliments Australia’s humanitarian response
commitments.
3.70
The AIFDR is co-managed with the Indonesian Disaster Management Agency
and focuses on enhancing Indonesia’s capacity to identify, mitigate and respond
to natural disasters.
3.71
As one of the most hazard-prone and densely populated countries in the
world, and with high levels of poverty, Indonesia faces a significant risk of
loss of life and economic impact from natural disasters. For these reasons
disaster risk reduction has been recognised by the Indonesian Government as one
of its top 11 priorities in the country’s Medium-Term Development Plan
(2010-14).
3.72
The delegation was informed that the AIFDR has four work streams:
n Training and outreach
— developing and delivering training materials to build the capacity of national
and sub-national governments to manager disaster risks;
n Risk and
vulnerability — facilitating partnerships between Australian and Indonesian
scientists to develop and demonstrate risk assessment methods, tools and
information for a range of natural hazards;
n Partnerships —
supporting key risk reduction partners of Indonesia and the Southeast Asian
region; and
n AIFDR grants — promoting
a culture of disaster risk reduction research and innovation in Indonesia and
the region.
Figure 3.7 The delegation and Australia’s Ambassador, His Excellency
Mr Greg Moriarty, with staff of the Australia-Indonesia Facility for Disaster
Reduction
![Photo of the delegation and Australia’s Ambassador, His Excellency Mr Greg Moriarty, with staff of the Australia-Indonesia Facility for Disaster Reduction](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image007.jpg)
Muhammadiyah
3.73
The delegation met Professor Din Syamsuddin, the President of Muhammadiyah,
which was established in 1912 in Yogyakarta as a reformist religious movement and
has grown to become Indonesia’s second largest Muslim mass-based organisation, now
claiming 35 million members.
3.74
Professor Syamsuddin highlighted Muhammadiyah’s historic role as an
important part of the fabric of Indonesian society. He explained that Muhammadiyah
remains a key voice for moderate Islam and is a regional leader in interfaith
dialogue. Muhammadiyah has branches in 18 countries, including Australia, and
sister organisations in five countries. Professor Syamsuddin said that Muhammadiyah
has been granted official observer status by the United Nation’s Economic and
Social Council.
3.75
It was explained that Muhammadiyah is active in providing social
services in education, health and disaster relief. The organisation operates
14,000 schools, 8,000 kindergartens, 132 tertiary education institutions, 180
hospitals and 60 midwifery clinics across Indonesia. Funding is provided predominantly
by members through almsgiving. The Government donates some funds but this was
said to be irregular.
3.76
The President explained to the delegation that although Muhammadiyah
does not have structural links to political parties, more than 100 Members of
Parliament claimed Muhammadiyah heritage and, in the previous Parliament, 161
Members across all parties belonged to Muhammadiyah.
3.77
The delegation explored with Professor Syamsuddin the differences
between Islam as it is practised in Indonesia and Middle Eastern countries. It
was explained that while there is ‘one Islam’, there are many cultural manifestations
and interpretations of the faith, and that Islam in Indonesia tends to be quite
liberal.
3.78
Professor Syamsuddin commented that Indonesia is an example to countries
of the Middle East. He stated his belief that modern and moderate Islam will continue
to dominate in Indonesia while Muhammadiyah and Nahdlatul Ulama (NU) continue
their work. He noted that Muhammadiyah and the United States Embassy will
jointly fund a conference to be held in December on the lessons learned from
the Arab Spring. Muhammadiyah will fund Muslims from Middle Eastern countries
to attend.
3.79
The delegation raised the attacks on Ahmadiyah adherents and Christians
in recent years. Professor Syamsuddin responded that the recent attacks were a
law enforcement issue more than a social issue. He stated his belief that
Indonesia remained at heart a moderate society and that Muhammadiyah would
continue to be at the forefront of advocating tolerance and inter-religious
dialogue in Indonesia and the region. He noted, for example, that Muhammadiyah works
with World Vision, Catholic Relief Services and the Catholic Bishops Conference
in Indonesia, and that it participates in an annual inter-faith dialogue
conference involving representatives from Indonesia, New Zealand, Australia and
the Philippines. Professor Syamsuddin noted that he is the Moderator of the
Asian Conference of Religions for Peace.
3.80
On the issue of corruption, Professor Syamsuddin said that corruption
was tantamount to a crime against humanity and that it had proliferated in the
post-Soeharto era. He made some critical observations on the Anti-Corruption
Commission but also noted that Muhammadiyah and NU had established an
anti-corruption movement among their memberships, which had now extended to
other faith leaders.
3.81
Professor Syamsuddin said Muhammadiyah was proud of the Memorandum of
Understanding (MOU) entered into with Australia in 2008, which is a unique
agreement between a key civil society organisation and a government.
Figure 3.8 The delegation with the President of Muhammadiyah, Professor
Din Syamsuddin
![Photo of the delegation with the President of Muhammadiyah, Professor Din Syamsuddin](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image008.jpg)
3.82
The MOU was signed by then Prime Minister Rudd and Professor Syamsuddin
and covers cooperation on disaster management, education, strengthening
democracy and cultural activities. The President noted that some work had taken
place, particularly in disaster management, but hoped more could be done.
Professor Syamsuddin indicated that one area for possible further cooperation
is education. He noted that Muhammadiyah is a major education provider,
operating as it does some 14,000 schools across Indonesia, and poorer
Indonesians tend to enrol at Islamic schools.
3.83
Noting the existence of academic centres in Australia such as the Centre
for Arab and Islamic Studies at the ANU, the President indicated that
additional scholarships for Indonesians to study in Australia would be welcome.
Economic, political and human rights
commentators
3.84
The delegation had the pleasure of holding discussions with a group of
esteemed Indonesian economic and political commentators. The experts who
attended a lunch event with the delegation included:
n Mr Meidyatama
Suryodiningrat, Chief Editor, Jakarta Post
n Professor Juwono
Sudarsono, Former Defence Minister
n Ms Retno Ruwyastuti,
General Manager News, MetroTV
n Dr Jamhari Makruf,
Vice Rector (Academic), State Islamic University
n Dr Clara Juwono, Centre
for Strategic and International Studies
n Ms Retno Shanti
Ruwyastuti, Assistant to the President Director, MetroTV
n Dr Siti Zuhoro,
Senior Researcher, Indonesian Institute of Sciences
n Ms Ima Abdurahim,
Executive Director, Habibie Centre
n Mr Goenawan Mohammed,
Founder of Tempo
Figure
3.9 Mr Nick Champion MP with Dr Jamhari Makruf of the State Islamic
University at an event with Indonesian economic and political commentators
![Photo of Mr Nick Champion MP with Dr Jamhari Makruf of the State Islamic University at an event with Indonesian economic and political commentators](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image009.jpg)
Figure 3.10 The Hon Philip Ruddock MP with the Chief Editor of the Jakarta
Post, Mr Meidyatama Suryodiningrat
![Photo of Hon Philip Ruddock MP with the Chief Editor of the Jakarta Post, Mr Meidyatama Suryodiningrat](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image010.jpg)
Figure 3.11 Delegation members with (L to R) Ms Rahimah Abdulrahim (Executive
Director, Habibie Centre), Dr Clara Juwono (Centre for Strategic and
International Studies) and Professor Juwono Sudarsono (former Indonesian Minister
for Defence)
![Photo of Delegation members with (L to R) Ms Rahimah Abdulrahim, Dr Clara Juwono, and Professor Juwono Sudarsono](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image011.jpg)
3.85
The delegation completed its engagements in Jakarta with a roundtable
meeting with commentators on human rights and religious tolerance issues,
listed below. The candour and dynamism of the commentators impressed the
delegation:
n Ms Poengky Indarti,
Executive Director, Imparsial
n Ms Indria Fernida,
Deputy Coordinator, KontraS
n Ms Erna Ratnaningsih,
Chairperson, Indonesian Legal Aid Foundation
n Mr Fajar Riza Ul Haq,
Executive Director, Ma’arif Institute for Culture and Humanity
Surabaya — Briefings and site visits
3.86
In East Java, the delegation had the pleasure of having dinner with
leading Surabaya-based Alumni of Australian universities and other educational
institutions.
3.87
The delegation also observed Australian development projects on Madura
Island, including clean water supplies to villages provided under a $25 million
Water and Sanitation Hibah scheme that has benefited more than 77,000 households
across Indonesia, and an Islamic school funded under the $395 million Basic
Education Program.
3.88
These inspections were followed by a visit to attend the launch of the Deteksi
2011 Convention, which is Indonesia’s largest youth convention, and a lunch
hosted by Mr Azrul Ananda, the President Director of Jawa Pos, the largest
newspaper group by circulation in Indonesia and hosts of the annual Deteksi
convention.
Indonesian-based Alumni
3.89
The Surabaya-based Alumni who attended the dinner with the delegation
included:
n Mr Doddy Kosasih,
Advocate, H K Kosasih and Associates;
n Mr Peter Sheehan,
Business Development Director, PT Padma Graha Eksotika;
n Ms Nany Wijaya,
Director, Jawa Pos;
n Ms Herlina Yoka
Roida, Lecturer, Universitas Katolik Widya Mandala; and
n Ms Inge Christanti,
Researcher, Human Rights Study Centre, University of Surabaya.
3.90
The delegation was grateful for the attendance by the Alumni and
impressed by their abilities and achievements. The delegation was pleased to
note the evident good will they displayed towards Australia.
3.91
The delegation was informed that, since 2000, 509 people from East Java
have received scholarships for postgraduate study in Australia. The delegation
noted how important it is for Australia to maintain and foster the links with
Alumni on their return to Indonesia. It was a concern for the delegation to learn
that there may be some inadequacies in the coordination of Alumni in East Java,
which members were informed is primarily an Austrade responsibility.
3.92
Some Alumni pointed out to the delegation that Australia does not have a
consular presence in Surabaya and that for a number of reasons, not least that
the city is the second largest in Indonesia, establishing such a presence might
be justified. The Committee subsequently recommended that a diplomatic post be
established in Surabaya in the report of its Inquiry into Australia’s Overseas
Representation.[12]
Australian-funded aid projects
3.93
The delegation received a briefing from Embassy and AusAID officials on
Australian development projects in East Java. This was followed by a visit to development
projects on Madura Island, which is linked to Java by the recently opened
Suramadu Bridge and is a short distance from Surabaya. The briefing covered
education, water and sanitation, disaster risk reduction, poverty reduction and
health initiatives.
Support for water and sanitation
3.94
The delegation was advised that access to improved water and sanitation
in Indonesia is low compared to other South-East Asian countries:
n less than one third
of Indonesia’s urban households have a water connection;
n only 11 cities have
piped sewerage systems, representing just over one per cent of the urban
population; and
n only 12 per cent of
rural households have piped water.
3.95
The proportion of households with piped water systems in cities and
towns has also declined since 1998 due to reduced investment and rapid
urbanisation. Currently, most households provide their own sanitation
facilities. In urban areas, households and commercial and institutional
buildings often use septic tanks.
3.96
At the current rate of investment, Indonesia cannot achieve the
Millennium Development Goal of halving the number of people who do not have
safe water and basic sanitation.
3.97
The delegation was advised that, at the time of its visit, Australia had
invested $86.5 million towards improving water and sanitation in Indonesia. It
is estimated that this support will give nearly two million Indonesians better
access to clean water and sanitation.
3.98
Since the 1980s, Australia has assisted to improve Indonesia’s water and
sanitation sector through a number of bilateral and multilateral programs, as
follows.
n The three principle
bilateral programs have been:
§
Indonesia Infrastructure Initiative ($153 million, 2008–15)
supports a range of infrastructure investments, including some $50 million
devoted to water and sanitation projects;
§
Australia-Indonesia Infrastructure Grants Program ($190
million, 2012–15) will provide support to local government to undertake
improved water and sanitation management and infrastructure; and
§
Water and Sanitation Hibah Program ($25 million, 2008–11)
which used an innovative output-based approach to increase the number of poor
households with access to water and sanitation connections boosting local
government investment in these utilities (a grant is provided to local
governments after independent verification that each new connection made by the
water and sanitation utility has functioned for at least three months).
Thirty-seven local governments have participated in the program to date. By the
end of its first phase, the Hibah scheme had provided 77,000 water and 5,000
sewerage connections in mainly poor households, benefiting approximately
410,000 people.
n In multilateral
initiatives, Australia has worked with the World Bank to improve access and
policy for water supply and improved sanitation ($42.5 million over four
years). This support has benefitted 400 villages and approximately 220,000
people with improved water and 200,000 people with improved sanitation across
Indonesia.
3.99
The delegation had the opportunity to see Australia’s assistance to improve
Indonesia’s water and sanitation sector in East Java during an inspection of
the Water and Sanitation Hibah (which translates as ‘grant’ in Bahasa
Indonesia) Program in Dekok Kluangan Village of Bangkalan district on Madura
Island.
3.100
Bangkalan is one of four districts in East Java province that has participated
in the Hibah program. The other districts are Malang, Sidoarjo and Jombang. In
Bangkalan district, Australia has supported 1,100 household piped water
connections for local residents. Across the four districts in East Java, the
program has connected approximately 11,300 households to piped water, which
equates to some 56,000 people.
3.101
The delegation was pleased to see first-hand how access to piped water
is easing the daily burdens on residents, saving time for villagers in
accessing and treating water, and improving the cost and quality of the water.
It was also pleasing to see how delighted the residents were with their piped
water access and with Australia’s assistance. The deputy leader of the
delegation, Mrs Joanna Gash MP, spoke to the assembled community leaders and
government officials at a ceremony to welcome the delegation.
Figure 3.12 Mrs Joanna Gash MP addressing community leaders at an
Australian-funded water project in Dekok Kluangan Village of the Bangkalan
district, Madura
![A photo of Mrs Joanna Gash MP addressing community leaders at an Australian-funded water project in Dekok Kluangan Village of the Bangkalan district, Madura](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image012.jpg)
3.102
The delegation was informed that Australia will continue to build on the
successes achieved in the water and sanitation sectors over the coming years.
3.103
AusAID plans to increase its support for water and sanitation
improvements by at least $180 million over the next four years, through a range
of bilateral grants in urban and rural water and sanitation and a
Figure 3.13 A resident showing delegation members the piped water for
households
![A photo of a resident showing delegation members the piped water for households](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image013.jpg)
Figure 3.14 Mrs Joanna Gash MP and the Hon Dr Sharman Stone MP meeting local
residents
![A photo of Mrs Joanna Gash MP and the Hon Dr Sharman Stone MP meeting local residents](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image014.jpg)
continuing co-financing of rural water
and sanitation projects with the World Bank and the Asian Development Bank:
n up to $95 million to
the water and sanitation sectors using the Hibah mechanism;
n up to $40 million in
grants to encourage district governments to invest in community sanitation
infrastructure and services; and
n up to $46 million in
project preparation assistance for the Indonesian Government to access bank
loans, include preparing detailed engineering designs and undertaking social
safeguard and environmental impact assessments for major infrastructure
projects (such as wastewater systems, treatment plants and solid waste transfer
stations).
Support for education
3.104
The delegation was informed that Australia’s engagement with Indonesia’s
education sector has extended from improving access to and the quality of basic
education to improving tertiary-level qualifications and providing
scholarships. The principle initiatives are as follows.
n Australia
Indonesia Basic Education Program ($395 million, 2006–11) was intended to
improve access to and the quality of junior secondary education services in the
poorest and most remote areas of Indonesia. The Program operated in 20 of
Indonesia’s 33 provinces. Schools were financed by Australia and constructed by
local communities using locally-procured materials and equipment, under the
direction of the Indonesian Ministry of National Education (for general
schools) and the Indonesian Ministry of Religious Affairs (for Islamic junior
secondary schools). The Program helped build or extend 2,074 schools (including
504 madrasahs or Islamic schools), creating around 330,000 new school places.
n Australia’s
Education Partnership ($500 million, 2011–16) builds on the Basic Education
Program and includes:
§
the building or expansion of up to 2,000 junior secondary schools,
creating around 300,000 new school places in disadvantaged districts;
§
developing and rolling out a national system for strengthening
the capacity of all 293,000 school principals, school supervisors and district
government officials; and
§
assisting some 1,500 Islamic schools to reach accreditation and
to meet national minimum service standards.
n Awards and
scholarships, such as the Australia Awards Program and the Australian
Leadership Awards. The Australia Awards are the largest and longest running
international scholarship program in Indonesia and 636 were provided in 2011.
Under the Program, the Australian Development Scholarships offered over 400
postgraduate awards to Indonesian students for masters or doctoral study in
Australia in 2012. These will be increased to around 500 scholarships per year
by 2014. The delegation was informed that many scholarship alumni have gone on
to hold positions of influence in Indonesia, strengthening the people-to-people
links between Indonesia and Australia. High-profile Alumni include
Vice President Boediono and the Minister for Foreign Affairs, Dr Marty
Natalegawa.
n Learning
Assistance Program for Islamic Schools ($35.3 million, 2004–11) supported
the 91 per cent of Islamic schools that are private and the various
non-government organisations that support and operate them. The program trained
junior secondary teachers in English language skills and strengthened their
English teaching capacity, provided text books, built school libraries and
promoted equal learning outcomes for girls and boys. Around 161,000 students
and 15,200 teachers benefitted from activities run in 983 Islamic schools.
n Building Relations
through Intercultural Dialogue and Growing Engagement project ($3.6
million, 2011–16) builds networks between Australian and Indonesian teachers
and students. Around 90,000 students in Australia and Indonesia have
participated in the project.
3.105
The delegation had the pleasure of visiting the Madrasah Tsanawiyah Darul
Munir, a private Islamic junior secondary school located in Separah Village,
Bangkalan and built in 2010 with Australian funding under the Basic Education
Program. As noted, Madrasah Tsanawiyah is one of 504 Islamic schools that were built
under the Program and one of 144 built across East Java, creating an estimated
21,800 school places and significantly increasing access to education.
3.106
The construction of Madrasah Tsanawiyah was financed through a block
grant equivalent to $77,449. In addition, Australian funding provided
engineering support, school furniture and some supplementary reading materials,
and training in school management to the principal and school committee. The
Madrasah is equipped with three classrooms, a resource room, a science
laboratory, a library and toilet block.
Figure 3.15 Students at an Australian-funded school, Madrasah Tsanawiyah
Darul Munir, greeting delegation members on their arrival
![A photo of students at an Australian-funded school, Madrasah Tsanawiyah Darul Munir, greeting delegation members on their arrival](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image015.jpg)
3.107
There are currently 169 students enrolled at the school, consisting of
104 boys and 65 girls, but demand has exceeded capacity at the school.
3.108
The delegation was informed that construction of the Madrasah has made
junior secondary education more accessible for the local community. Sixty per
cent of the Madrasah’s students come from the local community, where families
are typically farmers, agricultural or construction workers who cannot afford
the cost of transport to send their children to the nearest school, which is
around 15 kilometres away from the village. Many of the Madrasah’s third grade
students had previously stopped schooling for two or three years after
graduating from elementary schools. Before the construction of the Madrasah, it
was common that after graduating from elementary school, children were put to
work or married.
3.109
The delegation was pleased to note that despite being relatively poor,
the local community has demonstrated a strong engagement with the Madrasah,
providing funding and in-kind contributions so that additional facilities could
be built, such as a mosque and a dormitory for the students.
3.110
As with the visit to Dekok Kluangan Village, the delegation recieved a warm
welcome from the school community, which was clearly deeply appreciative of
Australia’s financial support for the construction of Madrasah Tsanawiyah Darul
Munir.
Figure 3.16 The Hon Laurie
Ferguson MP meeting students at the Madrasah Tsanawiyah Darul Munir
![A photo of Hon Laurie Ferguson MP meeting students at the Madrasah Tsanawiyah Darul Munir](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image016.jpg)
3.111
Delegation members were presented with scarves and treated to a display
of traditional dancing by the students on their arrival. The delegation then
had the opportunity to meet and speak to students in their classrooms and to
speak with the School principal, Mr Fandy Wijaya, the Head of the Darul Munir
Foundation, Mr Nurus Sholeh, parents, teachers and representatives of local
authorities. Students presented delegation members with handicrafts which they
had made.
Figure 3.17 The delegation
visiting a classroom at the Madrasah Tsanawiyah Darul Munir
![A photo of the delegation visiting a classroom at the Madrasah Tsanawiyah Darul Munir](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image017.jpg)
Figure 3.18 Delegation members presenting students with soccer balls
and books
![A photo of delegation members presenting students with soccer balls and books](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image018.jpg)
Education links — Deteksi Convention
3.112
The delegation completed its visit to East Java and to Indonesia by
attending a lunch hosted by Mr Azrul Ananda, President Director of the Jawa Pos
media group. Jawa Pos is Indonesia’s largest newspaper group by circulation and
revenue. Mr Ananda’s father, Mr Dahlan Iksan, the founder of Jawa Pos, was
recently appointed to Cabinet as the Minister for State-owned enterprises.
3.113
Following the lunch, the delegation attended the launch of the Deteksi
2011 Convention, including the opening speech by Ambassador Moriarty, the ‘Oz
Deteksi Challenge’ and the Ambassador’s Awards. The deputy leader of the
delegation, Mrs Gash, also spoke at the launch.
Figure 3.19 The delegation, Ambassador Moriarty and representatives of
the ANZ Bank and Commonwealth Bank at the Deteksi Convention with the President
Director of the Jawa Pos Group, Mr Azrul Ananda
![A photo of the delegation, Ambassador Moriarty and representatives of the ANZ Bank and Commonwealth Bank at the Deteksi Convention with the President Director of the Jawa Pos Group, Mr Azrul Ananda](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image019.jpg)
Figure 3.20 The Hon Dr Sharman Stone MP and Mrs Joanna Gash MP with
students at the Deteksi Convention
![A photo of the Hon Dr Sharman Stone MP and Mrs Joanna Gash MP with students at the Deteksi Convention](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image020.jpg)
Figure 3.21 Mr Nick Champion MP
with students at the Deteksi Convention
![A photo of Mr Nick Champion MP with students at the Deteksi Convention](https://aphref.aph.gov.au/House/committee/jfadt/timor_indo_del/report/Chapter3_files/image021.jpg)
3.114
Deteksi is the largest youth convention in Indonesia, and is hosted
annually by the Jawa Pos Group and supported by the Australian Embassy. The
2011 convention was sponsored by the ANZ and Commonwealth banks. The delegation
was pleased to meet the banks’ representatives, Mr Ian Phillip Whitehead,
Director of Retail and Business Banking, Commonwealth Bank Indonesia, and Ms
Leonie Lethbridge, Chief Operating Officer, PT Bank ANZ Indonesia.
3.115
The delegation had the pleasure of meeting groups of high school
students competing for the opportunity to participate in homestay programs in
Australia, supported by Queensland University of Technology (QUT), UNSW and
other educational institutions.
3.116
Since the delegation’s visit, Australia’s Embassy in Jakarta has
continued to support the Deteksi Convention by facilitating homestay programs
for competition winners. The Embassy, however, no longer offers financial
support as a sponsor of the Deteksi Convention because of funding constraints
and other priorities. Regrettably, the ANZ and Commonwealth banks no longer
sponsor the event either. The QUT has been involved in funding homestay prizes
and providing awards to several competition winners. However, QUT are currently
assessing their ongoing support for the Deteksi Convention.
Concluding comments
3.117
The delegation was pleased to see that the bilateral relationship with
Indonesia appears to be sufficiently robust and amicable as to withstand what
are at times quite serious challenges to the relationship. Irritants such as
the sudden suspension of the live cattle trade, the detention of minors from
Indonesian boat crews and various consular issues are handled without the
relationship being derailed. Nevertheless, the delegation is of the view that
Australian governments should at all times adopt a respectful mode of
communication and dialogue with Indonesia. An element of this should be,
wherever possible, a ‘no surprises’ approach towards our most important neighbour.
3.118
Of the themes which emerged in discussions in Indonesia it became clear
to the delegation that the bilateral trade relationship is widely considered to
be underdeveloped, and certainly doesn’t reflect the significance or maturity
of the broader relationship between our countries. It is hoped that
negotiations for the Indonesia-Australia Comprehensive Economic Partnership
Agreement can be expedited and additional steps taken to promote Australian
investment in Indonesia and vice versa.
3.119
As recommended in the Committee’s report for its inquiry into
Australia’s overseas representation, the delegation sees value in the
establishment of a consular presence in East Java, not least because Surabaya
is Indonesia’s second largest city and a significant economic and education
centre for Indonesia.
3.120
Surabaya is also the home of several hundred Alumni of Australian
educational institutions. The good will of the Alumni towards Australia was
pleasing to see. The delegation hopes that more can be done to coordinate the Indonesian-based
Alumni as a means of fostering the people-to-people links between Australia and
Indonesia.
3.121
While the principal purpose for the delegation’s visit was to hold
discussions with its counterpart committees in the DPR, the delegation was grateful
for the opportunity to visit Australian-funded aid projects in disaster
reduction, education and water and sanitation. These projects are manifestly
assisting Indonesia’s development and improving the lives of the Indonesian
people.
3.122
The delegation was very impressed by the Deteksi youth convention and
Australia’s involvement with the event. Members note the profile it gives to
Australia and the good will it evidently creates among large numbers of
students and their schools. The delegation urges that the Embassy and the
Australian Government to continue to sponsor the convention.
3.123
In addition to its meetings with parliamentarians and visits to
Australian-funded aid projects, the delegation appreciated the candour of other
interlocutors, particularly the human rights commentators, that members had the
opportunity to meet. These encounters underscored for the delegation the truly
vibrant democracy which is now emerging in Indonesia.
The Hon Michael Danby MP
Delegation Leader