Indonesia

Contact //Tel: +61 2 6178 4000
Fax: +61 2 6178 4880 // Post: GPO Box 887, Canberra, ACT 2601, Australia
 
 

heading foldHow we are helping

Estimated funding for 2013/14

$646.8 million


Our funding for 2012/13

$541.6 million*

Strategic goals

Priority Spend (%)
Total 100
Saving lives
View all initiatives
16
Promoting opportunities for all
View all initiatives
30
Sustainable economic development
View all initiatives
28
Effective governance
View all initiatives
18
Humanitarian and disaster response
View all initiatives
5
Cross cutting
4

*2012-13 Estimated Outcome ODA funding breakdown and graphs will be updated from 15 May 2013.

 

Australia and Indonesia have an effective development partnership that is changing millions of lives by 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.

Australia has invested $1,378.2 million in Indonesia over the previous three years. Our investment has contributed to important development results including:

  • providing approximately 510,000 people with increased access to safe water
  • creating around 330,000 new school places by building or extending 2,000 junior secondary schools
  • providing access to agricultural technologies for over 46,000 poor women and men.

More on results can be viewed under the ‘See our results’ tab above. 

Following the Government’s announcement on 17 December 2012 to reprioritise resources within the aid budget, the 2012–13 budget estimate for the Indonesian AusAID bilateral program was reduced by $33.5 million.This comprises:

  • a deferral of payments for school construction grants from March 2013 to July 2013 under the Indonesia Education and Scholarships program ($23.1 million)
  • deferral of funding for the new Women in Leadership Program from 2012–13 to 2013–14 ($2.0 million)
  • a cut to funds yet to be committed for climate change projects under the Indonesia Climate Change and Environment program ($8.4 million).

Australia expects to provide $541.6 million in development assistance to Indonesia in 2012–13. Australia remains committed to delivering results in Indonesia and our development assistance is expected to have a resounding impact in future years. We will:

  • support Indonesia’s efforts to reduce deaths from pregnancy complications
  • provide 250,000 new water and 9,000 new sewerage connections
  • provide 300,000 new junior secondary school places
  • assist around 1 million poor farmers lift their incomes
  • help Indonesia to address poverty and critical infrastructure needs.

More on expected outcomes can be viewed under the ‘See our results’ tab above.

Saving lives

Results 2011–2012

  • Australia is helping to improve maternal and neonatal health in East Nusa Tenggara, one of Indonesia’s poorest provinces. Since 2010, the program has trained more than 27,315 health workers and volunteers (approximately half of health workers and volunteers in the province), and renovated 24 birthing wards, which has contributed to twice the number of births taking place at the clinics where data has been collected. This has helped save the lives of many women and babies.
  • Australia supports community health centres to deliver comprehensive HIV prevention services. More than 650,000 needles and almost 500,000 condoms were distributed and 1000 people referred to methadone treatment.
  • Approximately 510,000 people with increased access to safe water, and around 110,000 additional people with access to basic sanitation or a public toilet as a result of Australia’s program in Indonesia.

Commitments 2012–2013

  • Australia will support Indonesia’s efforts to reduce deaths from pregnancy complications.
  • We are expanding our assistance in the provision of HIV testing and treatment in Papua and West Papua, estimated to result in over 20,000 people receiving HIV treatment in these provinces by 2016.
  • Additional investment in Water and Sanitation Hibah program over 2011–15 will result in 250,000 new water and 9000 new sewerage connections.

More information about saving lives

Promoting opportunities for all

Results 2011–2012

  • Since 2006, Australia has built or extended over 2000 junior secondary schools, creating around 330,000 new school places in some of Indonesia’s poorest and most remote areas.
  • Increased access to schools for children with disabilities by providing ramps, handrails and disabled toilets.
  • Offered a total of 636 Australia Awards in 2011.
  • Australia’s support has helped to deliver financial management, planning and school quality improvement training to approximately 596,000 school officials and community members across Indonesia.

Commitments 2012–2013

  • Australia will provide more Indonesian children with a good education by establishing around another 300,000 new junior secondary school places by 2016.
  • By 2016 we will develop and roll out a national system that will facilitate professional development for around 293.000 school and district government education officials.
  • For the 2013 intake 571 new Australia Awards were accepted in Indonesia, comprising 472 long-term and 99 short-term awards.

More information about promoting opportunities for all

Sustainable economic development

Results 2011–2012

  • Australia provided access to agricultural technologies for over 46,000 poor women and men in 2011.
  • Australia is continuing to rehabilitate, upgrade and widen the national road network in Eastern Indonesia. This includes construction or rehabilitation of up to 400kms of roads and bridges.
  • Australia’s funding to Indonesia’s National Program for Community Empowerment (PNPM) has encouraged women to be involved in their local communities. Female participation in PNPM is high, with up to 60 per cent of sub projects funded in rural areas initiated by women.
  • Australia’s funding is also going to PNPM Generasi, a pilot program targeting health and education, reached an estimated beneficiary population of 4 million people in 3234 villages across five provinces in 2011. A recent evaluation has highlighted that over the long term the program will improve child malnutrition rates.
  • Australia is helping Indonesia tackle climate change under the Indonesia-Australia Forest Carbon Partnership (IAFCP).
  • For 2011, more than 1.2 million seedlings were raised in 35 community-based nurseries and planted in the Kalimantan Forests and Climate Partnership (KFCP) area as part of the ‘Reducing Emissions from Deforestation and Forest Degradation’ (REDD+) project.

Commitments 2012–2013

  • Australia will assist around 1 million poor farmers lift their incomes by at least 30 per cent by 2022.
  • Australia is helping Indonesia to address poverty reduction and critical infrastructure needs. By 2013 we will rehabilitate, upgrade and widen the national road network in nine provinces of eastern Indonesia.
  • In 2012–13, our climate change program will continue to support one of the world's most advanced large scale Reduced Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+) demonstration activities in Central Kalimantan.
  • Australia is providing world-leading expertise to help Indonesia develop its national carbon accounting system, an essential prerequisite of any REDD+ system.

More information about sustainable economic development

Effective governance

Results 2011–2012

  • Australia has helped to strengthen government-to-government partnerships and policy dialogue with Indonesian government agencies.
  • Australian assistance strengthened management of Indonesia’s electoral system, including training 1598 election officials on election operations in 2011–12.
  • In 2012, 600 court officials and prosecution officers were trained in bureaucratic and anti-corruption reform, to achieve fair proceedings for justice seekers.
  • The Australia Indonesia Partnership for Decentralisation (AIPD) is working to improve the way in which local governments (district governments) in Indonesia provide essential services such as schools, health centres, local roads, water and sanitation. AIPD delivered programs in ten provinces and more than 40 districts, including planning and budgeting consultations with more than 400 civil society organisations and almost 3000 community organisations.
  • In 2011 Australia helped improve Supreme Court case management practices, finalised service charters for the courts which set out justice seekers’ rights, and supported women’s civil society organisations to work with poor women to access justice.

Commitments 2012–2013

  • In 2012-13 Australia will train 1300 civil servants on better management of resources, in particular public financial management and planning.
  • We will also support 180 civil society organisations to track service provision by 2014, resulting in partner governments becoming more effective at providing basic services to the poor.

More information on effective governance

Humanitarian and disaster response

Results 2011–2012

  • The Australia – Indonesia Facility for Disaster Reduction (AIFDR) has helped the Indonesian Government establish a real time earthquake impact estimation system which enables rapid estimates of the number of people potentially affected in a disaster.
  • Australia has provided $2.2 million of disaster response equipment and training to help establish and strengthen Indonesia’s first National Disaster Rapid Response Team. This means that better equipped and trained disaster management professionals will help Indonesia more effectively assess and respond to future disasters.
  • In 2011, Australia assisted over 46,000 people to recover from two natural disasters which occurred in 2010: the Mt Merapi eruptions and the Mentawai Islands tsunami.

Commitments 2012–2013

  • The Australia – Indonesia Facility for Disaster Reduction is working with Indonesia's largest faith based organisation and local governments to develop new disaster management laws in East Java. This will provide more than 12 million people with an opportunity to be better protected from natural disasters by the end of 2013.
  • When disaster strikes the region, Australia will deploy assistance within 48 hours.

More information on humanitarian and disaster response

Australian ODA to Indonesia, 2002–03 to 2012–13 ($m)

Graph of the Official Development Assistance to Indonesia. Exact values are provided below. 

The graph above shows the Australian Official Development Assistance to Indonesia, including AusAID funding and funding by Other Government Departments (OGD).

The exact values are as follows:

  • 2002-03: AusAID $118,875,497. OGD $13,015,994
  • 2003-04: AusAID $144,795,211. OGD $13,717,125
  • 2004-05: AusAID $175,151,728. OGD $55,354,510
  • 2005-06: AusAID $257,907,676. OGD $17,895,447
  • 2006-07: AusAID $319,532,733. OGD $18,237,869
  • 2007-08: AusAID $391,410,465. OGD $32,963,652
  • 2008-09: AusAID $417,328,183. OGD $24,236,845
  • 2009-10: AusAID $417,830,638. OGD $39,660,104
  • 2010-11: AusAID $369,953,897. OGD $36,727,534
  • 2011-12: AusAID $470,143,967. OGD $43,877,684
  • 2012-13: AusAID $508,019,050. OGD $32,112,592

Australian ODA to Indonesia by strategic goal, 2009–10 to 2012–13 (%)

Graph of the Official Development Assistance to Indonesia by strategic goal. Exact values are provided below. 

The graph above shows Australian Official Development Assistance to Indonesia by strategic goal.

The exact values are as follows (%):

  • 2012–13
    Saving lives: 16
    Promoting opportunities for all: 30
    Sustainable economic development: 28
    Effective governance: 18
    Humanitarian and disaster response: 5
    Cross cutting: 4
  • 2011–12
    Saving lives: 19
    Promoting opportunities for all: 29
    Sustainable economic development: 24
    Effective governance: 19
    Humanitarian and disaster response: 7
    Cross cutting: 2
  • 2010–11
    Saving lives: 22
    Promoting opportunities for all: 27
    Sustainable economic development: 26
    Effective governance: 14
    Humanitarian and disaster response: 5
    Cross cutting: 6
  • 2009–10
    Saving lives: 16
    Promoting opportunities for all: 30
    Sustainable economic development: 28
    Effective governance: 16
    Humanitarian and disaster response: 6
    Cross cutting: 3

Other ODA in Whole of Government 2010–11 to 2011–12

Graph of Australian Official Development Assistance to Indonesia by Other Government Departments. Exact values are provided below. 

The graph above shows the Australian Official Development Assistance to Indonesia by Other Government Departments.

The exact values are as follows:

  • Agriculture, Fisheries and Forestry:
    2010–11: None. 2011–12: $44,300.
  • Attorney-Generals—Australian Federal Police:
    2010–11: $990,400. 2011–12: $2,869,600.
  • Attorney-Generals—Customs and Border Protection:
    2010–11: $2,914,100. 2011–12: $2,649,800.
  • Australian Centre for International Agricultural Research:
    2010–11: $7,021,200. 2011–12: $7,249,000.
  • Education, Employment and Workplace Relations:
    2010–11: $2,426,600. 2011–12: $1,224,900.
  • Foreign Affairs and Trade:
    2010–11: $8,222,600. 2011–12: $8,563,000.
  • Health and Ageing:
    2010–11: $12,100. 2011–12: $29,100.
  • Immigration and Citizenship:
    2010–11: $10,509,500. 2011–12: $15,399,100.
  • Industry, Innovation, Science, Research and Tertiary Education:
    2010–11: $526,700. 2011–12: $1,889,900.
  • Infrastructure and Transport:
    2010–11: $3,795,200. 2011–12: $3,809,200.
  • States and territories:
    2010–11: $187,400. 2011–12: $149,400.
  • Sustainability, Environment, Water, Population and Community:
    2010–11: $43,600. 2011–12: None.
  • Treasury:
    2010–11: $78,100. 2011–12: None.

Research overview

Good research can lead to positive change for the world's poorest by enhancing the design and implementation of development policies and programs. That's why AusAID is committed to an innovative research portfolio and funds research, including through:

  • competitive funding mechanisms (such as the AusAID Development Research Awards Scheme)
  • research partnerships with different Australian, international and developing country research institutions
  • commissioning research to address a specific question or clearly defined research gap
  • one-off research grants, when an existing program of research is relevant to the Australian aid program.

More information on how AusAID funds research

SMERU Research Institute

The SMERU Research Institute is an independent institution for research and public policy studies, focusing on various socioeconomic and poverty issues considered most urgent and relevant for the people of Indonesia. Since its founding in 1998, and with AusAID support, the Institute has been at the forefront of the research effort to highlight the impact of government programs and policies, and has actively published and reported its research findings. SMERU's research teams are formed by combining researchers from different disciplines.

In the social and economic fields, SMERU conducts studies on the impact and performance of government programs and policies related to poverty, health and education. SMERU also focuses its research on the implementation of regional autonomy and decentralisation policies, particularly their impact on the provision of public services.

For a history of SMERU (which also contributes to AusAID’s Knowledge Sector program), download The SMERU Research Institute: History and lessons learned [PDF 344kb].

SMERU Research Institute

Indonesia Project

The Indonesia Project is a major international centre of research and graduate training on the economy of Indonesia. Established in 1965 in the Australian National University's Division of Economics, now The Arndt-Corden Department of Economics, the Project monitors and analyses recent economic developments in Indonesia; informs Australian governments, business, and the wider community about those developments, and about future prospects; and stimulates research on the Indonesian economy.

The Project is well known and respected in Indonesia and in other places where Indonesia attracts serious scholarly and official interest. The Project obtains its core funding from The Australian National University; since 1980 the Australian Government has provided an annual grant through AusAID.

For more details, visit the Indonesia Project website.

CSIRO AusAID Research for Development Alliance - Climate Adaptation Strategies for Rural Livelihoods in Indonesia

The CSIRO AusAID Research for Development Alliance - Climate Adaptation Strategies for Rural Livelihoods in Indonesia is a strategic partnership that aims to improve the impact of aid.

The Alliance aims to tackle important development challenges in the Asia-Pacific region through improved knowledge of climate, water and energy systems and by better understanding people’s vulnerabilities and options to adapt and manage their natural environment.

This CSIRO AusAID partnership provides an opportunity to introduce approaches to international aid delivery that better responds to the relationship between poverty and the environment. Alliance projects will achieve impact through influencing AusAID’s development policies, investments and projects, as well as informing international stakeholder policies and decisions.

CSIRO AusAID Research for Development Alliance - Climate Adaptation Strategies for Rural Livelihoods in Indonesia [external link]

Australia Indonesia Partnership for Pro-Poor Policy: Knowledge Sector Initiative (AIP4)

AusAID commissioned twelve research products to support the design of the Knowledge Sector program. The proposed 'Revitalising Indonesia's Knowledge Sector for Development Policy' program aims to enable Indonesian policy-makers to make evidence-informed decisions to meet its priority social development goals. The long term, comprehensive approach of the program comprises strategies to strengthen Indonesia’s domestic knowledge organisations to produce high quality, policy relevant research and analysis; enhance demands for analysis in policy formulation processes; and address the regulatory constraints that currently inhibit the growth of Indonesia’s knowledge sector – defined as the overall institutional landscape of government, private sector, and civil society organisations that provide knowledge to support the development of public policy.

Paul M. Sutmuller and Ivo Setiono contributed to the Knowledge Sector analysis with their report, Diagnostic on Evidence-based Public Policy Formulation under Decentralisation. The report looks into process of local public policy formulation and implementation in the context of ten years of regional autonomy in Indonesia. It questions the degree to which local public policies are evidence-based, what are the demands and supply of regional governments’ need for improved sources of policy knowledge and the incentives and disincentives for greater use of knowledge by policy makers.

Another research product, Knowledge for policy: Regulatory obstacles to the growth of a knowledge market in Indonesia, found that the level and quality of demand for knowledge emanating from government is a very powerful determining factor in the nature of the knowledge market. Current institutional arrangements for the application of knowledge to policy are uncoordinated and dominated by the vested interests of various agencies and powerful individuals within them. Within government, divisions between different categories of staff create barriers between policy expertise and the policy decision-making process. This hinders the capacity of government to formulate its knowledge needs, to develop evidence-based policy and to use outside sources of research and advice.

Australia Indonesia Partnership for Pro-Poor Policy: Knowledge Sector Initiative (AIP4)

Where is Indonesia?



View Where AusAID Works in Indonesia in a larger map

See Where We Work in the rest of the world

 

Demographic and development statistics for Indonesia

 
 

heading foldWhy we give aid

quote

Indonesia is an important neighbour in our region. More than 120 million Indonesians live on less than $2 per day. Australia is helping to save lives, opening up opportunities for the poor and promoting sustainable economic development, which is in the interests of both our nations as well as the broader region.

Find out more about why we give aid to Indonesia

 
 

heading foldHow we give aid

Australia is helping the Indonesian Government to better use its resources to assist the poor. Australia also works with several other partners in Indonesia including civil society, other donors, multilateral institutions and the private sector.

As Australia’s aid assistance to Indonesia grows, the education, infrastructure and social protection sectors will be priority areas for expansion.

Find out more about how we give aid to Indonesia

Read the Australia Indonesia Partnership Country Strategy 2008–14

 
 

heading foldIndonesia country strategy

Whole-of-Australia Indonesia country strategy—call for submissions

On 28 October 2012 the Australian Government released Australia in the Asian Century White Paper [external website] that will guide Australia’s engagement with Asia through to 2025. The Department of Foreign Affairs and Trade is now developing country strategies to deepen relations with regional partners, including Indonesia. DFAT welcomes public submissions and comments on country strategies until 31 May 2013.

More information or to make a submission [external website]

 
 

heading foldProgress Against MDGs

  • Eradicate extreme hunger & poverty
  • Achieve universal primary education
  • Promote gender equality and empower women
  • Reduce child mortality
  • Improve maternal health
  • Combat HIV/AIDS, malaria and other diseases
  • Ensure environmental sustainability

Demographic and development statistics for Indonesia

 
 

Last reviewed: 12 April, 2013