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Australian support for Indonesia

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AA57 10 July 1998


I am pleased to announce that during my visit to Jakarta, I have concluded several aid agreements which further underscore the close development cooperation relationship between Australia and Indonesia.

At this time of significant economic reform in Indonesia, I am pleased also to announce that Australia and Indonesia have agreed to introduce into Australia’s bilateral aid arrangements, a major program of activities to promote economic management capacity and reform.

The program of new and some ongoing activities will involve assistance worth up to $70 million over three years and, in close consultation with Indonesian authorities, will seek to enhance Indonesia’s capacity to meet the economic challenges it faces, especially in implementing economic reforms and achieving rapid economic recovery.

I have signed the General Agreement on Development Cooperation which will provide an enduring framework for development cooperation between our two countries, and two further specific agreements. These are:

• the Memorandum of Understanding for phase two of the Indonesia-Australia Specialised Training Program, which covers a five-year, $45 million program of short-term training focused on good governance and community development;

• the Memorandum of Understanding on Australian Development Scholarships, covering a $25 million annual program of tertiary scholarships for study in Australia.

I am pleased also to announce a package of 60 additional tertiary scholarships for study in Australia related to economic reform. This will bring the number of Indonesian students in Australia studying under aid scholarships to around 700.

The scholarships provide further evidence of Australia’s commitment to tertiary education in Indonesia at a time when economic circumstances make it difficult for many Indonesians to undertake higher education.


Australia’s general bilateral aid program in Indonesia, developed in cooperation with the Indonesian Government, has a particular emphasis on addressing the severe social and economic impact of the East Asian financial crisis and the drought on Indonesia’s poor. Assistance includes both immediate humanitarian aid and longer-term support

for governance aimed at strengthening Indonesia’s institutions.


Media Contacts: Innes Willox (Jakarta) 0811 993308 Keith Scott (AusAID) (02) 6206 4971

Media releases and speeches are available from AusAID via the Internet.