About AusAID
in Indonesia

What is AusAID

The Australian Government's overseas aid program is a Federal Government funded program that reduces poverty in developing countries.

The program is managed through the Australian Agency for International Development (AusAID) which reports directly to the Minister for Foreign Affairs. The overall aim of Australia's aid program to Indonesia is to serve Australia's national interest through assisting Indonesia reduce the incidence of poverty and achieve sustainable development.

AusAID's assistance in Indonesia is primarily distributed through projects managed by contractors selected competitively using the Commonwealth Procurement Guidelines.

It is a Government to Government (G to G) program, with the National Development and Planning Agency (BAPPENAS) as our main counterpart.

The program uses a variety of delivery approaches. We have bilateral projects, we also channel funds through United Nations agencies, International Financial Institutions (IFIs) and International Non-Government Organisations (INGOs). We also directly support local Civil Society Organisations (CSOs) and other community groups. All activities require the Indonesian Government's endorsement.

AusAID's History in Indonesia

Australia-Indonesia have been development partners for many years. In some areas, like education, the Development Cooperation Program association stretches back to the early 1950s. Commencing with scholarships, funded through the Colombo Plan. The program has, over the years, continued to grow, shifting and adapting to the changing needs and priorities of Indonesia.

The tsunami which struck north-western Sumatra on 26 December 2004 illustrated dramatically and tragically Indonesia's vulnerability to natural disasters. Australia, a major donor of humanitarian assistance to Indonesia since the economic crisis of the late 1990s, responded immediately to this disaster including by agreeing with the government of Indonesia to form a A$1 billion, five-year, Australia Indonesia Partnership for Reconstruction and Development (AIPRD) to support Indonesia's reconstruction and development efforts, both in and beyond tsunami-affected areas.

From 1 May 2006, the Australian bilateral aid program in Indonesia will be promoted under the brand Australia Indonesia Partnership (Kemitraan Australia Indonesia): a whole of government aid program encompassing expenditure of around A$2 billion over five years. This includes the A$1 billion Australia Indonesia Partnership for Reconstruction and Development (AIPRD), the single largest aid package in Australia’s history.

Australia's aid to Indonesia is delivered by a range of Australian Government departments in partnership with the Indonesian Government. This needs to be reflected in our brand. The Australia Indonesia Partnership (AIP) brand reflects the very strong emphasis on partnership, in other words, the strong senior-level engagement in the program by both governments. The brand has been approved by both governments.

Please see information on AIP branding for further details.

Australia's Aid Program in Indonesia

Estimated Official Development Assistance (ODA) to Indonesia: 2010-11

Country program estimate	A$325.4 million
Australia-Indonesia Partnership for Reconstruction and Development (AIPRD)	A$73.7 million
Estimated Total ODA	A$458.7 million

See Australia's International Development Assistance Program Budget 2010–11. Full Ministerial Statement [external site].

Estimated Official Development Assistance (ODA) to Indonesia: 2009-10

Country program estimate	A$284.4 million
Australia-Indonesia Partnership for Reconstruction and Development (AIPRD)	A$111.9 million
Estimated Total ODA	A$452.5 million

See Australia’s Overseas Aid Program Budget 2009-10 [external site].

Australia's development assistance strategy in Indonesia

The long-term goal of Australia's development assistance program with Indonesia is to assist the country to reduce poverty and achieve sustainable development. It aims to:

support improved economic management through support for key structural reform measures
help strengthen the institutions and practices of democracy through assistance for legal and judicial reform and democratic institutions
improve security and stability through support for counter-terrorism, conflict prevention and humanitarian assistance
help increase the accessibility and quality of basic social services, particularly in education and health.

In responding to the challenges facing Indonesia in the medium term, and in seeking to support Australia's national interests, the aid program will:

continue to expand assistance to governance through support for economic reform, legal and judicial reform, the promotion and protection of human rights and on-going support for counter-terrorism initiatives
increase the impact of poverty-focused programs intended to improve education, health, water supply and sanitation services to the poor.

The Australia Indonesia Partnership

The Australia Indonesia Partnership reflects Australia's national interest in Indonesia's stability and prosperity by helping Indonesia improve governance, reduce poverty and achieve sustainable development.

Poverty in Indonesia is heavily concentrated among those with little or no formal education. A major program in basic education is being implemented to assist the creation of a well-resourced mainstream education system.

Australia continues to support democracy in Indonesia through an expanded program of assistance for legal reform and human rights focusing on judicial reform, the promotion and protection of human rights and public accountability, electoral and parliamentary processes and institutions, and support for community legal organisations and anti-corruption measures.

Development programs continue to support measures for economic reform. These include financial sector restructuring and supervision, debt management, revenue enhancement and audit capacity building. Programs build on existing support for the government bonds management centre, further assisting the Indonesian tax office to streamline and improve processes and help with a major restructure of the Indonesian Ministry of Finance.

An integrated approach to poverty reduction in Indonesia is also being adopted, with this including helping the Government of Indonesia develop new approaches to poverty reduction and better district level governance.

Australia Indonesia Partnership (AIP) Branding

Information on branding Australia's aid program to Indonesia

About AusAID in Indonesia