Australian dollar coin
A one Australian dollar coin is seen in this picture illustration taken in Sydney, Australia, July 29, 2015. Reuters/David Gray

Around $500,000 Australian charity donations were linked to financing extremists for training and family support. Further investigation also revealed that the money was sent to Indonesia after it was collected from Australian donors.

Australian Transaction Reports and Analysis Centre (AUSTRAC) and Indonesian officials uncovered the transaction as part of a terror financing investigation. An Australian man, only referred to as L, raised and transferred the money. According to ABC, some donors may not have been in the loop about where their money really is.

Deputy Chairman of Financial Transactions and Analysis Centre (PPATK), Agus Santoso, confirmed the details. PPTAK is Indonesia's watchdog on financial transactions.

"The one in Australia is a local Australian, not an Indonesian who is living in Australia and sending money to Indonesia," said Santoso. "The money was used to recruit people, to fund training, to buy weapons and to give livelihood for the terrorists' family because the money goes to support the families of the terrorists who died," he added.

"It's a grave concern that funds of around half a million dollars have been sent to fund terrorism activities in Indonesia,” Yahoo quoted CNC Commissioner Susan Pascoe.

The authorities discovered that around five billion rupiah ($500,000 AUD) were used to support terrorists and their families from 2010 to 2015. Fundings came in the form of 45 money transfers. In defence of the donors, PPATK Chairman Muhammad Yusuf claimed that some of the people who donate may not be in the know that they are funding terrorism.

"It could be when it happened, from the perspective of the donor that it was meant for charity not for terrorism," he added. The investigation has led to the arrest of 11 people so far in Java. They are under suspicion of plotting attacks against the Shiite community (nation's minority). The individuals were also linked to campaigns against Christians and potentially Westerners as well.