Gillard considers her dealings with Indonesia are Diplomatic negotiations, however, all she is managing to do is make Indonesia wealthier and Australia deeper in debt
29 June 2012 – The Indonesian government announced it would pledge as much as $1 billion in an effort to boost the International Monetary Fund (IMF) resources following the G20 summit in Los Cabos, Mexico.
“This move is to show our commitment as part of the global community to strengthen world financial institutions, such as the IMF,” Agus said after a plenary session of the House of Representatives in Jakarta.
Indonesia is Southeast Asia’s largest economy and the sprawling, resource-rich archipelago has been one of the hottest investment destinations in a world buffeted by Europe’s debt crisis and slowing growth elsewhere.
That’s excellent news for the people of Indonesia. However, why is the Australian government still committed to giving Indonesia $1 billion in foreign aid by 2016. And to make matters worse the $1 billion we give we will need to borrow ourselves? Although it is not unusual for some countries to make investments with borrowed moneys, we have taken stupidity to a entirely new level
- We are giving Indonesia $1 billion in money we are borrowing.
- Indonesia has pledged $1 billion to boost the IMF,
therefore in effect we have given an additional $1 billion of borrowed money to the IMF.
Indonesia is a G20 country with an annual GDP of nearly $1 trillion USD.
Things are so good for Indonesia they recently just purchased 6 brand new Russian Sukhoi Su-30MK2 jet fighters for a cool $470 million.
3 July 2012 - Australia will contribute A$1 billion ($1.0 billion) to a contingency loan program for Indonesia, joining Japan, the Asian Development Bank and the World Bank for the stand-by loan facility, Prime Minister Julia Gillard said on Tuesday.
Gillard said the contribution will be part of an international package of contingency loans to Indonesia worth $5.5 billion, which can be accessed if Indonesia’s circumstances deteriorate markedly.
Again this money is borrowed money, we are putting aside to help a Country that is capable to look after itself.