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Concern over Indonesia aid cut

Experts have warned that foreign aid cuts to Indonesia in the upcoming federal budget will be seen as retribution for the execution of Andrew Chan and Myuran Sukumaran.

Assistance to Indonesia is expected to beĀ slashed in next week’sĀ budget as part of a wider $1 billion cut to foreign aid – the largest to the program in Australian history, according to a Fairfax report.

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Foreign Minister Julie Bishop warned on Monday last week’s executions would haveĀ ā€œshort, medium and long-term consequencesā€, but experts saidĀ theĀ planned aid cuts could be ill-received.

Australian Council for International Development directorĀ Marc Purcell said aid cuts to Indonesia were always going to beĀ part ofĀ the budget, but had placed Ms BishopĀ between a ā€œrock and a hard placeā€.

ā€œThere is a segment of the public baying for retribution by cutting the aid,ā€Ā Mr Pucell told Fairfax.

ā€œBut it could also risk diplomatic relations with Indonesia if it is misjudged.ā€

Indonesia is one of Australia’s largest aid recipients and was last year offeredĀ $605.3 million in assistance.

In Geneva, Graduate InstituteĀ of International and Development StudiesĀ research fellowĀ Robin Davies said theĀ cuts would be poorly-received by Indonesia.

ā€œIt will certainly be seen in some areas as retribution,ā€ Mr Davies said.

ā€œI’m not sure the government will be too concerned if it is seen as retaliation.ā€

According to theĀ report, the cut toĀ aid is understood to be so severe that ambassadors to African countries including Kenya, Botswana and Ethiopia begged the Department of Foreign Affairs at a meeting in March not to cut aid to their countries.

A Liberal MP at the meeting told Fairfax ambassadors addressed members of the DFAT joint standing committee and ā€œimploredā€ them not to reduce aid to the impoverished nations.

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