We had our chance to help shape Indonesia when they came to us for help during their war of Independence from the Dutch. The Government of the day turned their backs on Sukarno and Co. The end result was the creation of his regime and Konfrontasi. We turned our backs on the West New Guineans when the US and the Dutch pulled the carpet from under us and we had no means to back our threats against the Indonesian Konfrontasi against the Dutch. We stood up to the Indonesians in Borneo 'cause the British backed us and the Malaysians (who weren't without fault either). We turned our backs on the East Timorese in 1975 'cause the US had backed Suharto and didn't want a Communist state created on our back door step. Something often forgotten is that Fretlin had backing from Vietnam and was an avowed Marxist organisation. We didn't turn our back in 1999 when the Indonesians held a plebiscite in East Timor and were forced to pull out.
Now, what did we get from turning our backs? Well, quite a few more Australian citizens who weren't sent off to die in a war with Indonesia. We also gained respect from the Indonesians, both before but more particularly after the Boxing Day Tsunami. Yes, we purchased that respect and we continue to pay for it. However, it has meant that the boats have stopped. It has also meant that the drug trade has been disrupted. Terrorism on our doorstep has been disrupted. We have saved millions of dollars n defence expenditure.
Of course, to some, to save such money rather than "thrust their hands, wrist deep into the blood of Australia's young..." (a quote from a rejoinder during the 1966 Election campaign about Vietnam). What is also forgotten that in 1975 Australian society was disunited because of the Vietnam War. Australia wasn't interested in another war. Also we were basically broke. The resources boom which never came, never came. Our economy was in tatters and it remained in tatters until the ALP was election 1983. Thanks Tories.
Bad luck for the West New Guineans and the East Timorese but in reality, neither were our responsibility. In RealPolitik, it is much better to look after your own citizens than the citizens of another nation or colony. If they were anyone's responsibility they were the Dutch and the Portuguese's (respectively). They decided to pull out. In the first case, the UN moved in. Blame the UN for the Indonesians taking over. You're all usually good at blaming the UN for all the world's calamities. In the latter case, the Indonesians invaded after a civil war where their proxy lost.
Now, instead of carping over lost opportunities, how about we build a bright, new future, with a democratic Indonesia? They kicked their last dictator out 20 years ago, remember. How about we help them rein in their military? And how do we do that? By teaching them how to be responsible. Tsk, tsk.