Overview of Australia’s aid program to Indonesia

2016-17 Total Australian ODA Estimated Outcome
$357.0 million

2017-18 Bilateral Budget Estimate
$296.0 million

2017-18 Total Australian ODA Estimate
$356.9 million


The Australian Government will provide an estimated $356.9 million in total ODA to Indonesia in 2017-18, including an estimated $296.0 million in bilateral funding managed by DFAT.

  • How we work together:
    We work in an economic partnership, supporting Indonesia’s efforts to leverage its own resources to generate growth and distribute those benefits to a larger number of its people. We provide policy and technical advice that will improve the quality of Indonesia's investments in infrastructure, economic governance, human development and social policy, including in the area of law and justice.

  • Why our work is important:
    While Indonesia has experienced steady economic growth in recent years and achieved substantial development progress, growth is now slowing and inequality is high. At least 100 million people in Indonesia continue to live on $2 or less per day. This context makes our work in Indonesia all the more important, because sustainable and inclusive economic growth in Indonesia benefits Australia and contributes to regional growth and stability.

  • Policy framework:
    Australia’s Aid Investment Plan 2015/16-2018/19 aligns with the priorities of Indonesia’s National Medium-Term Development Plan 2015-19 (RPJMN). This plan sits under the country’s National Long-Term Plan 2005-2025 (RPJPN) and sets out the Government’s vision and priorities for the country. The nine priority areas include good governance, improved productivity and competitiveness, human resource quality and self-sufficiency. The 2015-19 plan has a focus on eastern Indonesia to help address regional disparities in development, whilst maintaining growth momentum in other parts of the country.

Our development cooperation program in Indonesia is structured around the three objectives of our Aid Investment Plan.


Our results

In 2017, Australia helped:

  • target electricity subsidies to the poorest 40 per cent of households, saving the Indonesian Government AUD 1.6 billion
  • expand financial services and increase financial inclusion for Indonesians not covered by major banks through new financial technology regulation
  • improve Indonesian Government budgeting, including through the introduction of multi-year budgeting in 87 agencies
  • establish a public-private partnership office in the Ministry of Public Works and Housing to accelerate the delivery of infrastructure
  • increase incomes for 44,000 small farming households
  • enable more than 50,000 women to contribute to policy and decision making in their communities
  • expand to 140 villages in 50 districts a program providing better services to migrant workers (mostly women) and their families.

Objective 1: Effective economic institutions and infrastructure

Improving economic institutions and infrastructure is essential to Indonesia's ongoing development.

Australia supports Indonesia's efforts to boost inclusive growth and productive jobs through refining its public policy and regulatory settings. We contribute to improved economic productivity by supporting financial sector stability, revenue mobilisation, improved government spending and tax collection.

We are also working to increase access to agricultural markets for poor farmers in Eastern Indonesia, driving economic growth and improving food security in the region.

We are helping drive infrastructure investment and growth through technical assistance and policy advice on regulatory provisions, planning and evaluation. A multifaceted approach, including more efficient use of government resources, careful project selection and preparation, and productive partnerships between the public and private sectors, will result in better infrastructure development all-round

Objective 2: Human development for a productive society

Indonesia needs to drive the development of human capital to create the conditions for higher growth. Our innovative education program works with schools to identify local challenges and opportunities to develop new approaches to tackle problems.

Our Australia Awards Scholarships deliver educational dividends for Indonesia's future leaders as well as valuable people-to-people linkages. Areas of study focus on a broad range of fields relevant to economic and development outcomes.

We are also working with Indonesia to prevent, detect and control emerging infectious diseases, a threat to Indonesian and Australian security, and we continue to prepare for and provide support to Indonesia during times of humanitarian need.

Objective 3: An inclusive society through effective governance

We work with Indonesia to ensure that the poor and marginalized in society benefit from economic growth, helping to meet Indonesia's poverty reduction targets by improving basic services and employment opportunities. We are helping develop better quality economic and social protection policies based on research and analysis. We are pursuing programs for women's economic and political empowerment, which help women gain jobs and other sources of financial security. Marginalised groups benefit from improved disability access and support as well as better local service provision. Having helped improve citizens' access to legal services, our law and justice work will shift to support for counter-terrorism and prison and court reforms.



Last Updated: 11 October 2017
Woman in hat on farm
Woman farm labourer in Blitar, East Java, Indonesia, supported through the Promoting Rural Incomes through Support for Markets in Agriculture program (PRISMA) tends to her chilli plants (credit: DFAT).
A woman sitting with baby in her arms
Umiyatun is breastfeeding her child in Ngawi, East Java, Indonesia. The Empowering Indonesian Women for Poverty Reduction Program (MAMPU) is currently supporting more than 210 women’s forums (Balai Sakinah Aisyiyah) as a crucial way to raise awareness among poor women of the importance of maternal and reproductive health (credit: DFAT).
Man smiling with thumbs up in front of water tap
A beneficiary of the Water and Sanitation Phase 2 program in Wonosobo, Central Java, Indonesia is happy to have access to clean water in his home for the first time (credit: DFAT).