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Australian foreign aid cuts have hit Indonesia deeply

Australian foreign aid cuts have hit Indonesia deeply

Indonesia will suffer the deepest cut from Australia's plans to slash foreign aid by almost 20 percent in the next fiscal year, according to the Jakarta Post.

Two weeks after recalling the ambassador from Jakarta in protest at the executions of two Australian drug traffickers, the government announced Tuesday it plans to cut Indonesian aid by 40 percent from 543 million Australian dollars (US$428 million) to AU$323 million. Some analysts had warned that the diplomatic rift between Australia and Indonesia over the executions could escalate if Australia withdrew aid in retaliation.

Aid to other East Asian countries such as Vietnam, the Philippines and Myanmar would be cut in similar proportions. But their losses are less in dollar terms because Indonesia receives the largest share of Australian aid.

Updated : 2021-09-24 00:10 GMT+08:00