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How to deal with a big neighbour

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The relationship between Australia and Indonesia is one of the most complex in the Asian region. The aftermath of the most recent terrorist attack in Bali, in which four Australians were killed and 100 people injured, has further illustrated that complexity.

Australians are Janus-faced in their attitude to Indonesia, and the Australian government is similarly disposed. Whereas it perceives China as a land of opportunity both in a strategic and economic sense, Indonesia is not nearly so straightforward.

A survey commissioned this year by a leading foreign-policy think-tank in Sydney, the Lowy Institute, found that just 52 per cent of Australians view Indonesia positively. This compares to 69 per cent who see China in a good light.

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The brittleness of Australian attitudes towards Indonesia has been underscored this year by the extraordinary outpouring of goodwill after the Boxing Day tsunami, followed by the racism-laden hostility after a young Australian woman, Schapelle Corby, was found guilty in Bali of drug trafficking in May. Today, while some holidaymakers have said they will avoid Bali, others are determined to continue to support the local tourism industry, despite the most recent bombing.

Many of those Australians who contributed money for tsunami relief, only a few months later, were cheering a Sydney media commentator who called Corby's judges 'monkeys'. And thousands more Australians were preparing to boycott Bali as a holiday destination.

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At a government-to-government level, the administration of Australian Prime Minister John Howard and that of Indonesian President Susilo Bambang Yudhoyono have an extraordinarily robust relationship.

Since the 2002 Bali bombing, security co-operation between the two governments has been stepped up, and Australia's aggressive and speedy response to the tsunami helped to strengthen trust. But Australia's participation in the war in Iraq as a member of US President George W. Bush's 'coalition of the willing' is deeply unpopular in Indonesia, as Richard Woolcott, a former Australian ambassador to Indonesia, and one of Australia's most experienced Indonesia watchers, said in a speech last month.

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