Dutch Developmental Aid to Indonesia – Moral Obligation or Self–Interest

This paper examines why the Netherlands and other donors continued to provide official development aid (ODA) to Indonesia between 1965 and the early 1990s despite ongoing human rights violations. Using qualitative desk research and theoretical analysis, it finds that two key factors—donor self-interest and moral obligation—best explain aid decisions. While theories of liberal internationalism and humanitarian duty played a role, economic and political interests were the dominant drivers. For the Netherlands, ODA initially served to restore international political influence and secure economic benefits, later incorporating humanitarian rhetoric while maintaining commercial priorities, and eventually functioning as a domestic economic tool during recession. Similarly, Japan’s aid was strongly tied to securing resources and investments. Overall, the study concludes that a recipient country’s strategic importance outweighs human rights concerns in determining aid allocation. Although...Show moreThis paper examines why the Netherlands and other donors continued to provide official development aid (ODA) to Indonesia between 1965 and the early 1990s despite ongoing human rights violations. Using qualitative desk research and theoretical analysis, it finds that two key factors—donor self-interest and moral obligation—best explain aid decisions. While theories of liberal internationalism and humanitarian duty played a role, economic and political interests were the dominant drivers. For the Netherlands, ODA initially served to restore international political influence and secure economic benefits, later incorporating humanitarian rhetoric while maintaining commercial priorities, and eventually functioning as a domestic economic tool during recession. Similarly, Japan’s aid was strongly tied to securing resources and investments. Overall, the study concludes that a recipient country’s strategic importance outweighs human rights concerns in determining aid allocation. Although human rights can influence ODA decisions, this occurs mainly when aid is substantial, donors act collectively, and political actors are committed to enforcing such standards.Show less

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Dutch Developmental Aid to Indonesia – Moral Obligation or Self–Interest