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Humiliation on the high seas

By Murray Hunter - posted Friday, 15 November 2013


The actions taken by Indonesia are only of a low level, with the nation's top leadership largely silent over the matter. There have been no demonstrations outside the Australian Embassy, unlike the Malaysian Embassy where crowd gathered and burnt the Malaysian flag, when Indonesian maids were mistreated in Malaysia. So the positive side is that this 'spat' between Australia and Indonesia is not a major one. Only the Indonesian leadership felt it was necessary to draw a line with Australia.

There is deep frustration in Jakarta that the Australian Government still doesn't have a fundamental understanding of Indonesia.

Damage to the relationship is currently minimal, as both countries know that there is a need to improve bilateral relations. However there is now a special onus upon the Abbott Government to show in some way that the relationship has a high priority and is truly valued.

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Indonesia is on its way to becoming a major power in the region. Indonesia's GDP (PPP) is already larger than Australia at USD 1.212 Trillion, the 16th largest economy in the world. This growth is occurring through the whole archipelago of Indonesia rapidly transforming the country into a much more advanced economy. With a consistent annual growth rate of around 6% Indonesia's influence within the region will grow dramatically.

Former Prime Minister Paul Keating in his delivery of the Keith Murdoch Oration Lecture in November 2012 stated "Policy towards our nearest, largest neighbor Indonesia has languished lacking framework judgments of magnitude and coherence. It's as if Indonesia remains as it was before the Asian financial crisis, before its remarkable transition to democracy, and before the refiring of its wealth machinery".

At face value, it appears that Australian policy makers still have a lot of thinking to do about the Indonesian relationship. Although the "Australia in the Asian Century" white paper calls on Australians to learn more Indonesian language at school and more cultural exchanges between the peoples of the two countries, the Department of Foreign Affairs and trade (DFAT) regularly issues travel warnings about Indonesia, effectively telling Australians not to visit Indonesia. In addition the halting of live exports of cattle to Indonesia and stationing of 2,500 US marines in Darwin without first advising the Indonesian Government does little to develop trust and openness between the two countries. Aid is also not the answer. Australia's relationship with Indonesia must go far beyond aid to build up any much deeper understanding.

Indonesia has a much more sophisticated view of the world than Australian policy makers have given credit for. The Indonesian view of the world sees the issues of energy, food, and water security becoming paramount concerns when the world's population approaches 9 billion people. SBY speaks of the need for a new global architecture, seeing China and the US as rivals who need each other. Regional powers, of which Indonesia s one must play a role along with both China and the US in promoting and maintaining peace and cooperation. In terms of the China-US rivalry, Indonesia is pursuing a policy of dual co-existence where the legitimacy of both powers in the region is recognized and respected. Consequently Indonesia doesn't see itself as having any foreign policy obstacles in dealing with both powers. Indonesia is interested in developing the 'rules for the road' in managing conflicts and disputes in the South China Sea. In picking up this role as an indirect conduit between Beijing and Washington, Indonesia sees this as the most productive role it can take in maintaining a peaceful region.

Australia must recognize the emergence of Indonesia as a new power in the region and treat it as such, understanding that Indonesia has its own view of the world. The strong Australia-US relationship as we have seen with the spying revelations, sometimes gets in the way of other bilateral relationships just as important to Australia.

A paradigm of change has taken place in Indonesia where Australia must see that it needs Indonesia more than Indonesia needs Australia. This needs to be understood in Canberra. This 'stand-off' was not just about negotiating a fair and equitable agreement about the handling of asylum seekers, but a message that a new understanding is required for the relationship between Australia and Indonesia to progress.

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Finally, the latest episode in conducting both foreign policy and playing to the domestic electorate at the same time, has proved to be a very dangerous game. The pandering to domestic electors is now holding back both parties from forming a genuine partnership and moving forward. Premier Abbott must also ensure that his neighbor has room to move.

Let's hope that the Abbott Government has learnt this lesson early in its first term as government and will be aware of this trap in future.

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About the Author

Murray Hunter is an associate professor at the University Malaysia Perlis. He blogs at Murray Hunter.

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