Indonesia is the third-largest greenhouse gas emitter on the planet - after China and the United States. The vast bulk of its emissions are caused by deforestation of its tropical rainforests - particularly in central Samatra. Deforestation emissions in Indonesia are about half the total emissions of China.
Australia has an interest in reducing these emissions if only because this might help forestall the arrival on our doorstep of millions of impoversished environmental refugees generated by climate change. In addition, Indonesia has 120 million hectares of rainforest and 10% of the world's biodiversity that people around the world value as public goods.
Australia does have an aid scheme to help Indonesia limit deforestation but the amounts involved are of the order of tens of millions of dollars when billions are required.
There are huge potential climate change mitigation as well as biodiversity conservation benefits from limiting this deforestation. Integrating forestry into Clean Development Mechanism arrangements would be a low cost way of reducing global emissions.