Australia's relationship with Indonesia is one of its most important and contentious bilateral relationships, characterized by sharply differing social and cultural mores and by periodic crises and mutual distrust, but also by significant person-to-person contacts in many fields. Recent developments, including the tsunami tragedy, the policies of a new Indonesian president and the Corby affair, have demonstrated both the best and the worst in the relationship. The Corby affair revealed high levels of igrance and prejudice about Indonesia in some quarters in Australia. On the other hand, the tsunami that wrecked Indonesia's Aceh province led to an outpouring of sympathy and support from Australia. Following President Yudhoyo's visit to Australia in early 2005, official relations, though fragile, were better than they had been for many years. Australia's management of its most important regional relationship also has implications for its relations with other countries in the region, through issues such as Australia's presence and role in regional organizations, and policy responses to the rise of China. This book examines the wide range of factors and approaches that are involved in meeting the bilateral and regional challenges, including government links, public images and mutual perceptions, regional organizations, the role of Islam, the aid relationship, security and counter terrorism, ecomic and business relations, and the student market. The articles by the authors in this book reflect a complex, many-sided relationship that is t susceptible to simplistic formulas or stereotypes. The contributors include former Australian ambassador to Indonesia Richard Woolcott; former Indonesian ambassador to Australia S. Wiryo; Noke Kiroyan, president of the Indonesia-Australia Business Council; K. Kesavapany, director of ISEAS; Paul Kelly of The Australian newspaper; Scott Dawson of the Australia-Indonesia Partnership for Reconstruction and Development; Hugh White and Jamie Mackie of the Australian National University; and David Reeve of the University of New South Wales.