well then a perfect target would be the export terminals - in the East Africa book the Soviets destroyed the Nigerian oil terminals to prevent them exporting oil - similar thing could happen to Indonesia
as to why they go to war - the Indonesians arent looking for total war - they think the Australians will just roll over and allow Papua to be taken - and they find out its not that simple - and they dont have the ability to project enough power to make the 10 to 1 advantage really mean anything - especially since they are dealing with the after effects of the nuke attacks on them - and you could easily have the other half of New Guinea rise against the Indonesians as well -that would keep them very busy indeed and prevent them bringing their full power to bear
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