Let's Make Sure We Help

The Bali massacre highlights once again the deep importance of Indonesia to Australia.

Indonesia is not only our largest neighbor but a major trading partner, a major destination for Australian investment and our largest off-shore tourist destination.  It is also the largest Moslem nation, the linchpin of ASEAN and one the largest oil producing nations.

It has embarked on the difficult and risky but necessary transition from military dictatorship to democracy and an open society.  It began the transition with its economy still in tatters from the Asian crisis of 1997 and on the brink of further decline -- largely as a result internal institutional failure.  Even before the Bali tragedy, foreign investors were exiting Indonesia in large numbers and investment and foreign direct investment was down by two-third on the levels of previous year.

It is vital therefore that Australia assist Indonesia to make this difficult transition.  In truth our ability to do so is limited.  As a result of our support for East Timor, many Indonesian regard Australia with suspicion.  Moreover, the history shows that to be successful nations must do the hard yards themselves.

Nonetheless, there is one thing we can do.  The Australian Government can stop funding activists operating who are undermining the transition process under the guise of civil society.

For example APHEDA or Union Aid Abroad campaigns against free trade, privatisation, foreign investment by multinational corporations (including Australian firms) and deregulation.  It also "campaigns in support of independence for West Papua ..."  In short it promotes values and policies that are diametrically opposed to those of the Australian and Indonesian Governments and to Indonesia's economic and political recovery.

Of course, APHEDA should be free to pursue its views within the laws of the land and with its members' own resources.  APHEDA however is not an independent NGO.  It receives $3.1 million from AUSAid -- the Australian Aid Agency -- which represents 70 per cent of its total income.  In 2000, at least, its operations in Indonesia were in part funded by the Australian government.

AUSAid does not fund APHEDA to promote independence movements or to campaign against economic reform in Indonesia.  However it does help fund its overall capacity to pursue its extra curricular activities.  Moreover to Indonesians APHEDA quite understandably appears to be an official Australia organisation.  Not only is it largely funded by the Australian Government but has direct links to the Labor Party with the President of the ALP Greg Sword and Federal Member for Reid, Laurie Ferguson on its management committee.

APHEDA is not the only government funded aid organisation which gets involved in local politics and pursues policies antithetical to the Indonesia.  A number of Australian aid agencies have led the campaign against Nike's operations in Indonesia.  This campaign has contributed to Nike's recent decision not to renew its contracts with Indonesian shoe manufacturers.  The decision is expected to cost the jobs of 7,000 mostly young Indonesian women from poor families.  As Nike is expected to move its contracts to China or Viet Nam, the anti-Nike campaign has also not improved the position of workers generally.

Making foreign aid work is a difficult task.  So at least let's ensure that it is not counter productive.

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