Unfortunately this thread (and the debate more broadly) is replete with generalisations and misrepresentations. A couple of facts might help clarify some of the issues:
The cruise missile purchase is known as Project Air 5418. The project's year of decision, budget, and an explanation of the capabilities sought are outlined in the Defence Capability Plan 2004-14. This 10 year plan provides a level of transparency in Defence procurement not found anywhere else in the region. Our regional neighbours were briefed on the plan by our respective embassies (including the Jakarta post) at the time of its public release. There can be no suggestion that the purchase was sprung on our neighbours - they have a 10 year blueprint for every major piece of Defence equipment that we intend to acquire.
In any case, all that was announced was that a tender process would be conducted, during which the capabilities of the respective missiles would be evaluated. There is no decision yet on type (and therefore range / payload capabilities.)
Obviously the missiles can be used defensively or offensively - the same can be said of just about any piece of military equipment.
When commenting on the reaction by Indonesia, one should not lose sight of the domestic politics involved. Foreign Affairs spokesman Marty Natalagawa criticised the purchase - this plays to his particular core constituency where anti-Australianism is popular. The head of the TNI, General Sutarto, was much more measured - saying that Indonesia was comfortable with the purchase and that it was Australia's right to choose whatever weapons it liked. Long story short - just like here, politicians in Indonesia will choose their message to appeal to their audience!
In short, this is a normal step on the road to acquiring a capability that has been publicly foreshadowed for some time. It isn't about appeasement or anything of the sort. Our defence force is prudently acquiring new capabilities to replace those that are ageing or becoming obsolete- just like every other country with a modern defence force does.
It's that simple........
SW