In Southeast Pacific，Australia and Indonesia are two of the most important countries. The relationship between the two countries have great influence on the security and stability of the Asia-Pacific area. The prosperity and stability of Indonesia is of great importance to Australia. Thus，Australia’s aid to Indonesia serves the interests of Australia，and meets the demands of a developing Indonesia. In the 21st century，Australia constantly expands the aid to Indonesia，the amount of which exceeded that of Japan in 2011，making Australia Indonesia’s largest donor. Under the new circumstances，there are several new features of Australia’s aid to Indonesia. Priority has been given to social infrastructure and public service，especially education，establishing the three-level evaluation system. However，considering problems such as cultural difference，inexperience，mistakes in planning，there is a lot left to accomplish. For example，it still stings in Australia’s foreign aid system that the single aiding form，the imbalance between areas in geographical terms and in social or economic term，and lack of evaluation criterion. Nevertheless，Australia have been adjusting its foreign aid policy，and most of the aiding resources has been used in the Indo-Pacific. So，despite all above，there are much brighter prospects for Australia’s aid to Indonesia.