Australia - Indonesia

Links & Relationship

Euro Ruangvanish
Yr. 10 Mrs Foster


GeographyYr10
AustraliaLinkswithothercountries

Introduction
Australia,thebiggestcountryintheOceaniaregion,activelyinteractswith
othernationsaroundtheworldinordertoformlinksandrelationshipswiththe
neighborcountriesandothersfaraway.MostoftherelationshipsthatAustralia
hadformedwiththepastdecadesorsoaremostlyintheASEANandAPECgroup
andaroundtheAsiaPacificregion.However,thisreportisgoingtobefocusingon
oneofAustraliasoldestlink,Indonesia.ThesecurityandwealthifAustralians
increasinglydependsonthestrengthofthelinksandpartnershipwithIndonesiain
particularlytheareaofTradeandAid.

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Indonesia

IndonesiaisacountryintheSouth-EastAsiaregion.Withmorethan13,000
volcanicislands,ithasearneditsplaceastheworldsbiggestislandcountry.The
countrysharesitsborderswithPapuaNewGuinea,EastTimorandMalaysia.
NeighborscountriesarePhilippines,Singapore,Australia,PalauandIndianTerritory
ofAndamanandNicobarislands.TheIndonesianeconomicsareranked16thinthe
worldusingthenominalGDPand8th
usingGDPbyPPP.Indonesiaalsohasupto
300distinctethnicgroupsand742differentlanguagesanddialects.
OfficialName:RepublicofIndonesia
Capital:Jakarta
Population:255,461,700(estimatedin2015)
PopulationDensity:124.66/km2
Area:1,904,569km2(4.85%Water)
GDP(total):$2.840trillion
GDP(percapita):$11,135
Currency:IndonesianRupiah(IDR)
TimeZone:Varies(UTC+7to+9dependingonlocation)

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Australia
Australiaistheworlds6th
largestcountrybytotalarea.Beforethearrivalof
British,AustraliawasinhabitedbytheIndigenousAUstralian,dividingintogroups
withmorethan250spokenlanguagegroups.Federatedin1st
January1901,thesix
coloniesbecametheCommonwealthofAustraliawiththepopulationgrowing
increasinglytoaround24millionpeople(estimatedin2016).Ithasdevelopedinto
oneoftheworld'slargesteconomy,ranking12thintheworld.
Capital:Canberra
Population:24,163,600(estimatedin2016)
PopulationDensity:2.8/km2
Area:7,692,024km2
GDP(total):$1.137trillion
GDP(Percapita):$51,642
Currency:AustralianDollar(AUD)
TimeZone:Various(UTC+8to+10.5dependingonlocation)

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Australias Link with Indonesia

AustraliaslinkwithIndonesiastartsallthewaybacksince1640sduringthe
contactbetweentheIndigenousAustraliansandtheMacassanTrepangersfrom
SouthwestSulawesi,upuntilAustraliasrecognitionoftheRepublicofIndonesiain
1949.Themainareasthatthetwocountrieshadbeenmutuallyworkingtogether
areTradeandAid.

Indonesia-AustraliaComprehensiveEconomicPartnershipAgreement
(IA-CEPA)wasreactivatedagaininMarch2016.Thetwocountriesstrademinister
metearlierthisyearinordertoreactivatetheC
omprehensiveEconomic
PartnershipAgreementlaunchedbyLeadersin2010.Theagreementwasaimedby
thetwoministerstobeahighqualityagreementandascomprehensiveas
possible.ItwassaidthatIA-CEPAwouldseektobuildonexistingmultilateraland
regionalagreementsincludingAANZFTA(ASEAN-Australia-NewZealandFree
TradeAgreement).

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Australias Link with Indonesia - AID

Intheareaofaid,Australiahadinvestedanapproximateof$613.8million
intoIndonesiaseconomyin2014-2015.Accordingtothepiechartabove,itcould
beseenthatthemajorityofthemoneyinvestedintoIndonesiaistoimprovethe
Education,EffectiveGovernanceandInfrastructureandTrade

ThelinkwithIndonesiahasbeenimprovedevensincethestartofthe
relationshipbetweenthetwocountries.Australiahassentmanyaidsintothe
countrysuchasHumanDevelopmentforaProductiveSociety.Theaidprogram
thatwassentbyAustraliatoIndonesiawasaimedtohelpthecommunityidentify
andlocatethelocalproblemsandthencomeupwithanalternativesolutionasa
groupinordertogetthecommunitytobemoreeffectiveasawhole.

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ThesecondexampleofAustraliasaidtoIndonesiaistheInclusiveSociety
throughEffectiveGovernance.Thisprogramisaimedtogetthepoorand
unfortunatestobeapartandalsobenefitsfromtheeconomicgrowththatis
rapidlyincreasinginIndonesiaduringthecourseofthepastfewyear.

AnotherexamplethatwouldbeagoodlinkbetweenAustraliaandIndonesia
istheEffectiveEconomicInstitutionsandInfrastructure.Theaisprogramsmain
ideawastostabilizethefinancialsector,improvedmobilizationandalsoimprove
thegovernmentsspendingontaxandincomesothatthemoneyearnedisused
foragoodcauseandwouldthenreturntofurthermorebenefitsthecountrywhich
wouldthenhelpevenmorewiththerapideconomicgrowthinthecountry.This
programwasalsoaimedtoimprovethetradebetweenthetwocountrieswhich
wouldbementionedinsectionbelow.

Australias Link with Indonesia - TRADE

Asmentionedintheparagraphsabove,
IA-CEPAwasaimedtobringtogethertwoof
SoutheastAsiaslargesteconomiestogether,
formingatradinglinkbetweenthetwo
countries,AustraliaandIndonesia.Thereare
severalbenefitstotheIA-CEPAwithlinks
AustraliawithIndonesia;someofwhichgreatly
benefitstheeconomiesinbothcountries.

ThefirstbenefitofIA-CEPAisthat;Thecontractwouldreducetheadditional
costofgoodsandproductstoandfromIndonesiaandAustraliawhentradingwith
eachother.Thiswouldalsoreducetheadditionalcostforexportersandimporters,
reducingthepriceofgoodswiththemostefficientwaypossiblewhichwouldalso
impedeeconomiccompetitivenessbetweenthetwocountries.

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Also,theIA-CEPAwouldenhancethebilateraltradebetweenAustraliaand
IndonesiabecauseitwouldincreaseAustralianinvestmentsinIndonesiaandalso
IndonesianinvestmentsinAustralia.Thiswouldbeagreatwaytoenhancethe
bilateraltradelinksinmanydifferentaspectsthatwouldimprovetherelationships
andlinksbetweenAustraliaandIndonesia.

Intheareaoftrade,IndonesiaandAustraliahavehadagoodrelationships
witheachotherforalongtimeearningashighas$14.9Billioninthemutualtrade
relationshipin2011-2012,+8.3%fromthepreviousyear(2010).Indonesiaalso
received$541.6MillionforthepurposeofdevelopmentfromtheAustralian
governmentin2012-2013.

Lookingatthebarchartabove,itcouldbeseenthattheamountofimports
fromIndonesiaintoAustraliahasbeenincreasingatanalmostfixedrateof
approximatelyeverythreemonths.Thevaluesoftheseimportscouldbeevened
outtoabout600000AUDTHOwhichisahugeamountofmoneyfromjust
importsalone.Thiscouldbeassumedthattherateofimportsofproductsand
goodsandIndonesiaintoAustraliahasbeenatagoodamountwhichwould
improvetheeconomiesofbothcountriesifthiscontinuesforthefutureyears.

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Events regarding the

Relationship between
Australia and Indonesia
Lastyear,therewasan
eventthattriggeredaresponse
fromtheAustralianGovernment
abouttheIndonesian
Governmentactionregarding
theexecutionoftwooftheBaliNinedrugsmugglers;AndrewChanandMyuran
Sukumaran.Inresponsetotheexecutionofthetwodrugsmugglers,Australiawas
goingtowithdrawtheembassadorbackfromIndonesia.

ThetwoBaliNinedrugsmugglershadbeeninprisonsince2006after
receivingadeathsentencewhichwasdelayeduntil25thApril,2015whichwas
whentheyweresentencedtodeathbytheexecutionerattheprisonislandof
Nusakambanganat3:35AMAEST.Theywereimprisonedfor10yearssincethe
beginningoftheirsentence.

Regardingtheexecution,AustraliangovernmentrepliedthatIndonesia
shouldnothaveexecutedtheprisonersjusttoshowasanexampleofbadpeople
becausethesetwohadbeeninprisonforaslongas10yearswhichwouldprobably
alreadyhadbeenyearsoftormentandsufferingforthem,sotheyshouldn'thave
beenexecuted.Also,itwasaddedbytheAustralianGovernmentthatthe
Indonesiangovernmentshouldnotexecutethetwoprisonersbecauseofthe
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GeographyYr10
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amountofaidthatwasgivenbytheAustralianGovernmenttotheIndonesian
governmentinordertotryandimprovethateconomyandsocietyinIndonesia.
BecauseIndonesiaisoneofAustraliasmostimportantbilateraltradepartner,with
theamountofaidsenttoIndonesiasittingataround$365.7million,thelink
betweenthetwocountrieswouldstillneedtobestrongandexistasapartofa
goodrelationshipbetweenthetwo.

Anotherpointthathad
triggeredtheAustralian
Governmentintoorderinga
withdrawalofthe
embassadorfromthe
Australianembassyin
Jakartaisbecausethe
amountoftimethatthe
deathsentencewasdelayed
wassupposedlyanunfair
thingtodoagainstthose
twoprisonersbecauseitwouldonlycausemorelostandsufferingtothefamilies
ofthetwodrugsmugglers.Itwassaidthatthefamilyofthetwoprisonerswere
alreadyexpectingalifetimesentenceintheprisoninsteadofadeathsentence
becausetheyweredelayedforalmost10yearssincethesentencewasgivenout
andwerestartingtoacceptthefactthattheywouldbeinprisonforareallylong
time.Thisincidentthencausedthemtobeunawareofwhythesetwowere
executedandresultedingriefamongthefamilies.

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AustraliaLinkswithothercountries

What is ASEAN?
ASEAN(AssociationofSoutheastAsianNations)p
romotes
intergovernmentalcooperationandfacilitateseconomicintegrationamongstits
members.Consistingof10membernations,itisaregionalorganisationoriginally
formedbyMalaysia,Thailand,IndonesiaandSingapore.TheaimofASEANisto
promotesocialprogress,economicgrowthandsocioculturalevolutionamongthe
countries.Formedin8th
August,1967,ASEANsmotto,OneVision,OneIdentity,
OneCommunitywasaimedtocoporatethenationsinthesameareaof
SoutheastAsiatocollaborateandhelpeachotherswithaspectsthatwouldhelp
developthecountriessuchastrade,aidandeconomic.

Members:Malaysia,Indonesia,Thailand,Singapore,Brunei,Vietnam,Myanmar,
Laos,Cambodia,Philippines.
Area:4,435,618km2
Population:625millionpeople(2013estimate)
PopulationDensity:141perkm2
GDP(total):$7.6trillion(USD)
GDP(percapita):$12,160(USD)

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GeographyYr10
AustraliaLinkswithothercountries

What is APEC?
APEC(Asia-PacificEconomicCorporation)isagroupthatpromotesfree
tradeinehAsia-Pacificregion.Formedby21ofthePacificRimmembereconomies,
itwasformedtodefusefearthatthehighly-industrialisedJapanwoulddominate
theworldsmarket.Itwasalsoformedinordertoestablishnewmarketsforraw
materialsandagriculturalproductsinEurope.Thegroupwasestablishedin1989
withoriginally12economiesandthecurrentheadquarterisinSingaporewiththe
APEC2016economicmeetingsummitinPeruthisyear.

Members:Australia,Brunei,Canada,SIngapore,Philippines,Japan,Thailand,
Indonesia,SouthKorea,NewZealand,UnitedStates,China,Taiwan,HongKong,
Mexico,Chile,Peru,Russianfederation,Vietnam.
Establishedin:November,1989

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Source/Bibliography:

ABCNews.(2015).A
mbassadororderedhomeinwakeofBaliNineexecutions.[online]Availableat:
http://www.abc.net.au/news/2015-04-29/australia-to-withdraw-ambassador-to-indonesia-bali-nine-de
aths/6429510[Accessed9Aug.2016].
ABCNews.(2015).C
hanandSukumaranaskedformercy,butgotnone:families.[online]Availableat:
http://www.abc.net.au/news/2015-04-29/andrew-chan-and-myuran-sukumaran-executed/6426654
[Accessed9Aug.2016].
Austrade.gov.au.(2016).M
arketprofileIndonesiaForAustralianexporters-Austrade.[online]Available
at:http://www.austrade.gov.au/Australian/Export/Export-markets/Countries/Indonesia/Market-profile
[Accessed9Aug.2016].
Davies,R.(2015).A
ustraliasbillion-dollaraidcut:Indonesiagetsit,oreverybodydoes-DevpolicyBlogfromthe
DevelopmentPolicyCentre.[online]DevpolicyBlogfromtheDevelopmentPolicyCentre.Availableat:
http://devpolicy.org/australias-billion-dollar-aid-cut-indonesia-gets-it-or-everybody-does-20150211/
[Accessed9Aug.2016].
DepartmentofForeignAffairsandTrade.(2016).Indonesia-AustraliaComprehensiveEconomicPartnership
Agreement.[online]Availableat:
http://dfat.gov.au/trade/agreements/iacepa/pages/indonesia-australia-comprehensive-economic-partn
ership-agreement.aspx[Accessed9Aug.2016].
DepartmentofForeignAffairsandTrade.(2016).Indonesia.[online]Availableat:
http://dfat.gov.au/geo/indonesia/pages/indonesia.aspx[Accessed9Aug.2016].
TheConversation.(2013).A
ustraliantradewithIndonesia:what'sreallyatstake?.[online]Availableat:
http://theconversation.com/australian-trade-with-indonesia-whats-really-at-stake-20889[Accessed9
Aug.2016].
Topsfield,J.(2016).IndonesiatoimportcattlefromothercountriestoreducerelianceonAustralia.[online]The
SydneyMorningHerald.Availableat:
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http://www.smh.com.au/world/indonesia-to-import-cattle-from-other-countries-to-reduce-reliance-onaustralia-20160128-gmg96a.html[Accessed9Aug.2016].
Tradingeconomics.com.(2016).A
ustraliaImportsfromIndonesia|1988-2016|Data|Chart|Calendar.
[online]Availableat:http://www.tradingeconomics.com/australia/imports-from-indonesia[Accessed
9Aug.2016].
Wikipedia.(2016).A
ustralia.[online]Availableat:https://en.wikipedia.org/wiki/Australia[Accessed9Aug.
2016].
Wikipedia.(2016).A
ustraliaIndonesiarelations.[online]Availableat:
https://en.wikipedia.org/wiki/Australia%E2%80%93Indonesia_relations[Accessed9Aug.2016].
Wikipedia.(2016).Indonesia.[online]Availableat:https://en.wikipedia.org/wiki/Indonesia[Accessed9
Aug.2016].

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