Australia to cut aid to Indonesia, African nations

Aid to Indonesia will be substantially slashed by the Australian government in next week's budget, despite fears it could be seen as direct retribution for the execution of Bali Nine ringleaders Andrew Chan and Myuran Sukumaran, local media reported on Wednesday.

Assistance to Indonesia and a number of African nations will be slashed as part of a 790 million U.S. dollar cut to Australia's foreign aid, Fairfax Media reported.

Last year, Indonesia - Australia's largest aid beneficiary - was given 478 million U.S. dollars in assistance.

However, tensions between the two neighbors have risen due to the executions of convicted drug smugglers Chan and Sukumaran, with Australia's ambassador to Indonesia called home in the wake of Indonesia carrying out the death sentences.

The director of the Australian Council for International Development, Marc Purcell, told Fairfax Media the government needs to be careful how it presents the aid cuts, particularly to Indonesia.

Purcell said that despite current public sentiment wanting Indonesian aid to be cut in retribution, the cuts were always going to be made by a government seeking cost-saving measures.

"There is a segment of the public baying for retribution by cutting the aid," he said. "But it could also risk diplomatic relations with Indonesia if it is misjudged." Endi