Indonesia launched an international aid agency on Friday to strengthen its regional diplomatic relations, some of which have been strained by Jakarta's approach to the restive Papua region.

Several Pacific nations have backed calls for investigations into allegations of violence by security forces in Indonesia's easternmost region, although only Vanuatu has openly voiced support for independence of former Dutch colony Papua.

Jakarta, which has defended the actions of security forces in Papua, said on Friday that the new agency, with an initial budget of about 3 trillion rupiah ($212 million), can provide development aid or disaster relief to smaller countries.