Mark Forbes, Jakarta – Indonesia has praised Australia's new stance against Papuan asylum seekers, indicating a thaw in the diplomatic freeze imposed by President Susilo Bambang Yudhoyono after a boatload of 42 Papuans were granted asylum.
Ahead of a planned meeting with the Foreign Minister, Alexander Downer, in Singapore last night, his Indonesian counterpart, Hassan Wirajuda, said Australia had responded positively to the crisis by introducing a new "Pacific Solution".
Mr Wirajuda said Indonesia had dropped demands for the return of the 42 Papuans and that Australia had shown "goodwill" in its attempt to resolve the stand-off, in a marked change of tone. Both nations benefited from a strong bilateral relationship and the issue of the 42 was "solved", he said.
The meeting is expected to pave the way to restoring relations, which had sunk to their lowest ebb since East Timor's bloody independence struggle. Dr Yudhoyono had ordered a review of all co-operation with Australia and had recalled his ambassador from Canberra, claiming Australia was undermining Indonesia's sovereignty The results of the meeting will be referred back to Dr Yudhoyono and the Prime Minister, John Howard, who are planning a face-to-face meeting to mark the resolution of the issue.
Mr Wirajuda indicated the ambassador could be returned, although it could take some time and further negotiations.
Privately, both sides are hopeful the crisis will be resolved within the next few weeks, before a planned Australia-Indonesia forum to be attended by government leaders in Jakarta around the end of June.
Mr Wirajuda said Australia had committed to processing any future asylum seekers in the Pacific and "even if they would be classified as refugees they would not be accepted in Australia. This is positive for us for the future".
The new policy would help persuade would-be refugees from Papua to abandon plans to seek asylum in Australia, he said.
Although there was a need for further discussion on the policy, Australia's response to finding three Papuans on a Torres Strait island last week demonstrated its effectiveness, Mr Wirajuda said. "Australia did not allow them to land and to be processed but were returned to the country where they departed from, namely to Papua New Guinea.
"This is also positive. There is policy that we give positive appreciation to and there is implementation of the policy that we respect and we think it is goodwill on Australia's part to respond to our message and position."
Indonesia realised it was unrealistic to demand the removal of the visas already granted to the 42 Papuans, Mr Wirajuda said.