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If the press release of the Indonesian Foreign minister is any indication, Bishop is clearly in denial and not on the same page, so they have a lot of back room discussions to go to get something going again.
Although I agree that the policy of buying particular boats to deter specific asylum operations and indicating that they will pay Indonesians for information that might deter boat passages was stupid, the fact that the Indonesian Foreign Minister was not on board with what Bishop had to say is not necessarily a bad thing. It might simply indicate that an Australian Foreign Minister is finally willing to stand up against Indonesia when it comes to AUSTRALIAN SOVEREIGN RIGHTS rather than kowtowing to them as they have in the past in case they might be offended. We have already seen Indonesian ministers (or perhaps just MPs) telling us that they want us to abandon our plain label packaging of cigarettes because apparently Indonesia is where much of our cigarettes are imported from and it might impede their exports, and just yesterday we had another Minister/MP suggest that the Indonesian Navy should help refugees travel to Australia.
I don't know who has the most to lose if our relationship sours, but there are times when we must stand up for ourselves no matter what the risks. I think we will earn more respect in the long run.