Australia's relationship with Indonesia hit new lows under former prime minister Tony Abbott, says the head of the Australia-Indonesia Institute.
In February, Mr Abbott infamously linked cuts to Australia's tsunami aid to Indonesia to the execution of Bali 9 pair Myuran Sukumaran and Andrew Chan, prompting a strong backlash - including the burning of effigies of the then-Liberal leader.
Mr Abbott's comments were unfortunate, foolish and a huge mistake, institute chairman Tim Lindsey told a function in Perth on Tuesday.
Much work is needed to manage the fragile and volatile relationship between the two neighbours, Professor Lindsey said.
"Politicians know the relationship matters a great deal for Australia's future and they keep saying it, but they walk away from it as soon as talkback radio gets the bit between its teeth," he said.
Prof Lindsey said polls show most Australians do not realise Indonesia is a democracy, they believe it sympathises with Islamic extremism and they rate it more negatively than any other country other than North Korea, Iran, Afghanistan and Saudi Arabia.
The Indonesian public are also ill-informed about Australia, but with much less hostility, he said.
"This is an appalling state of affairs. It is catastrophically bad and that's why it's so difficult for the relationship to be managed," Prof Lindsey said.
Australia has failed to handle the change from Indonesia's highly diplomatic former president Susilo Bambang Yudhoyono to his successor, Joko Widodo, Prof Lindsey said.
"The coalition government in Canberra has not done well in dealing with the changed circumstances," he said.
"If there was ever a time megaphone diplomacy and sending messages via the media or in parliamentary debate to Indonesia would be effective in the bilateral relationship, it is not under Jokowi.
"Rightly or wrongly, Canberra needs to be a lot more subtle, nuanced and smart if it wants Indonesia to look south."
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