President Joko Widodo is not crying over cuts to Australian aid for Indonesia. AAP Image/Eka Nickmatulhuda

How will a 40% cut in Australian aid affect Indonesia?

Australia has cut aid to Indonesia by 40%. That may cause diplomatic displeasure, but the country has restructured its development programs in recent years to be less dependent on foreign money.
Prime Minister Tony Abbott’s call for Indonesia to ‘reciprocate’ revealed the ugly side of Australian aid: politics. AAP/Lukas Coch

What do Indonesia and Australia expect and get from aid?

Australian aid to Indonesia, both in the form of loans and grants, is not independent of its political and economic interests.

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