GZ, according to a report made by the Indonesian army, they are...

GZ, according to a report made by the Indonesian army, they are excluding locals from the whole island unless they have permission from the Australians, and that has angered the locals.
There is added sensitivity due to the area being close to the Indonesian boundary as well as East Timor.
Also there is the need to ensure such isolated areas do not become havens for terror groups or drug smugglers, any activity by foreigners will certainly attract the attention of the authorities.