The question is though what has the EU ban achieved? While Garuda may have passed an IATA safety audit last year the safety record of the industry as a whole is still appalling. Look at the accidents that have already occurred this year and it is clear that there is still a desperate need for regulatory reform.
If Australia were to put in place a ban it would not have any affect on Australians traveling within Indonesia. Of course the risk analysis would need to focus on the potential danger of Garuda aircraft flying into Australian airports but I think there is more to be gained by CASA and the like trying to assist the Indonesian Government/DGCA effect real change in oversight and the regulatory environment.
The status quo is not acceptable, even if life is cheap.