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    Indonesia Foreign Policy under Suharto
    Source: The Library of Congress Country Studies

    Indonesia's foreign relations after 1966 can be characterized as generally moderate, inclined toward the West, and regionally focused. As a founding member of the Nonaligned Movement (see Glossary) in 1961, Indonesia pursued a foreign policy that in principle kept it equidistant from the contentious Soviet Union and the United States. It was, however, dependent upon Japan, the United States, and West European countries for vital infusions of official development assistance and private investment. Jakarta's perceptions that China had intervened substantially in its internal affairs by supporting the PKI in the mid-1960s made the government far less willing to improve relations with Beijing than were other members of ASEAN. Although Indonesia differed with its ASEAN counterparts over the appropriate response to the Cambodian crisis after the Vietnamese invasion of that country in 1978, its active role in promoting a negotiated end to the Cambodian civil war through the Jakarta Informal Meetings in 1988 and 1989 reflected a new sense of confidence. Policy makers believed that since the country had largely achieved national unity and was making ample progress in economic development, it could afford to devote more of its attention to important regional issues.

    Given Indonesia's strategic location at the eastern entrance to the Indian Ocean, including command of the Malacca and Sunda straits, the country has been viewed as vital to the Asian security interests of the United States and its allies. Washington extended generous amounts of military aid and became the principal supplier of equipment to the Indonesian armed forces. Because of its nonaligned foreign policy, Jakarta did not have a formal military alliance with the United States but benefited indirectly from United States security arrangements with other states in the region, such as Australia and the Philippines. The New Order's political repressiveness and its pacification of East Timor, however, were criticized directly and indirectly by some United States officials, who in the late 1980s began calling for greater openness.

    In terms of international economics, Indonesia's most important bilateral relationship was with Japan. During the 1970s, it was the largest recipient of Japanese official development assistance and vied with China for that distinction during the 1980s. Tokyo's aid priorities included export promotion, establishment of an infrastructure base for private foreign investment, and the need to secure stable sources of raw materials, especially oil but also aluminum and forest products. Jakarta depended on aid funds from Tokyo to build needed development projects. This symbiotic relationship, however, was not without its tensions. Indonesian policy makers questioned the high percentage of Japanese aid funds in the form of loans rather than grants and the heavy burden of repaying yen-denominated loans in the wake of the appreciation of the Japanese currency in 1985. Although wartime memories of the Japanese occupation were in general not as bitter as in countries such as the Philippines, Malaysia, and China, there was some concern about the possibility of Japanese remilitarization should United States forces be withdrawn from the region. In the context of Indonesia's long history, the forces bringing about greater integration with the international community while creating political and economic tensions at home were not unexpected. Historians of the twenty-first century are likely to find remarkably similar parallels with earlier periods in Indonesia history.

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    Peter Bellwood's Prehistory of the Indo-Malaysian Archipelago is an excellent source for understanding the early development of Indonesian society. Jacques Dumarçay's Borobudur provides an extensive description of the temple complex and an account of historical developments during one of the earliest periods of Indonesian history. An overview of the ways in which Islam reached and spread through the archipelago is provided by M.C. Ricklefs in his A History of Modern Indonesia, which also provides an excellent account of events leading up to the 1965 coup d'état. A good discussion of both the pre-Islamic and Islamic periods is also found in Koentjaraningrat's Javanese Culture, although, as the title indicates, it devotes little attention to events outside Java. C.R. Boxer's The Dutch Seaborne Empire: 1600-1800 describes the adventures and misadventures of the VOC in Indonesia, but also places them in the broader context of worldwide colonial history. In Search of Southeast Asia, edited by David Joel Steinberg, has the merit of placing Indonesian historical development after the eighteenth century in comparative perspective with other Southeast Asian countries.

    Anthony Reid's "Indonesia: From Briefcase to Samurai Sword," published in Alfred W. McCoy's Southeast Asia under Japanese Occupation; and Nugroho Notosusanto's The Peta Army during the Japanese Occupation of Indonesia discuss the relevance of the Japanese occupation. A good discussion of the National Revolution period is found in Audrey R. Kahin's Regional Dynamics of the Indonesian Revolution: Unity from Diversity and Reid's Indonesian National Revolution, 1945-50. Bernard Dahm's Sukarno and the Struggle for Indonesian Independence and John D. Legge's Sukarno are well-written portraits of this interesting individual. Hamish McDonald's Suharto's Indonesia provides an extensive examination of events leading up to the New Order and its subsequent policies. An excellent supplement to the whole course of Indonesian prehistory and history is Robert B. Cribb's Historical Dictionary of Indonesia.

    Periodicals with extensive coverage on Indonesia include Asian Survey, Journal of Asian Studies, Journal of Southeast Asian Studies [Singapore], Modern Asian Studies [London], Indonesia, Pacific Affairs [Vancouver], and Southeast Asian Affairs [Singapore]. The Dutch periodical Bijdragen tot Taal-, Land- en Volkenkunde [Leiden] has numerous articles in English on Indonesia. The weekly Far Eastern Economic Review [Hong Kong] and its annual Asia Yearbook provide timely updates to the historical record. The Bibliography of Asian Studies, published annually by the Association for Asian Studies, and the semiannual Excerpta Indonesica [Leiden] also provide additional reference material. (For additional information and complete citations, see Bibliography.)

    Data as of November 1992

    NOTE: The information regarding Indonesia on this page is re-published from The Library of Congress Country Studies. No claims are made regarding the accuracy of Indonesia Foreign Policy under Suharto information contained here. All suggestions for corrections of any errors about Indonesia Foreign Policy under Suharto should be addressed to the Library of Congress.

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    Revised 04-Jul-02
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