It's certainly possible that a confrontation between Indonesia and Malaysia could be the beginning of any Indonesian campaign to capture Papua New Guinea. The Indonesians have long had territorial ambitions that cover Malaysia, Singapore, the Philippines, Timor and Papua New Guinea.
There's so little information in canon that we can have it play out in whatever way we want.
It's also possible that Australian aid to Malaysia might be in other forms, e.g. intelligence, training, small arms ammo and so on.
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