Indonesia's Foreign Policy & Strategy Towards the Asia Pacific Region

I. Indonesia’s Foreign Policy



A nation’s foreign policy is a result of various factors and situations whether stable or unstable in a definite period. As part of national policy, foreign policy is implemented in order to achieve national goals. The national goals are dependent of two factors namely stable and unstable factors, which are related to time and to the nation’s overall identity and character.



The stable/constant factors are in principal adjusted to the political system and the national constitution, which encompass the protection of national citizens and the public institutional building. These factors are also interconnected with principal elements such as national myths and nation’s philosophy, which are based on the people’s consent.



On the other hand, the unstable factors depend on the urgent needs of the government, the legislative body or any other stockholders that might influence the decision-making of the national policy.



Indonesia’s foreign policy in 2006 is part of the major policy of the Indonesia Bersatu Cabinet (2004-2009) which is dedicated to the mandate of the Basic Constitution 1945. These mandates are among others to protect the Indonesian citizens, to educate its people, to promote the public welfare and to promote the international order based on independence, perpetual peace and social justice.



To ensure the accomplishment of the national goals, the Department of Foreign Affairs is focusing on diplomatic cooperation with other countries. The first concentric circle: Association of South East Asia Nations (ASEAN) is the main pillar of Indonesia in undertaking its foreign policy. The second concentric circle: ASEAN+3 (Japan, China and South Korea). Beyond that, Indonesia is also cooperating intensively with the US and European Union which are the main economic partners of Indonesia. Indonesia also acknowledges the importance of cooperating with the like-minded developing countries such as participating actively in the Non-Aligned Movement (NAM), the Organization of the Islamic Conference (OIC), the Group of 77 (G-77) and the Group of 15 (G-15). Within these fora, Indonesia puts forward the common efforts in bridging the gap between developing countries and developed countries. Meanwhile, at the global level, Indonesia is asserting consistently the strengthening of multilateralism through UN, particularly in resolving all problems of peace and world’s security. As to unilateral action, Indonesia rejects any unilateral decision adopted outside the UN framework.



In facing the ever-changing world order, it is important to develop flexibility in conducting foreign policy in order to gain the maximum benefit of the prospects and challenges arising. In this regard, President Susilo Bambang Yudhoyono in his keynote speech in May 2005 had introduced a new concept of a constructivist foreign policy; which is to develop three conditions: (1) a positive way of thinking in managing external problems; (2) connectivity in handling international matters, and (3) a solid nation identity based on Indonesia’s national and diplomatic achievements.



The conduct of Indonesian diplomacy must consistently adopt the principal of free and active, which reflects the main character of Indonesia’s foreign policy. The implementation of the free and active foreign policy must also be adjusted with the changing of strategic environment both at global and regional level that influences the conduct of foreign policy. Indonesia’s foreign policy is designed to meet the Indonesian national interest and the ever-changing international environment. The changing of international environment is not only the result of the dynamics of states’ relation but also the emergence of new issues and new actors (non-state actors) in international relations.



The Indonesian diplomacy is to actualize the program of priorities outlined by the Cabinet of Indonesia Bersatu, which in principal is to undertake the Total Diplomacy with a view to arrive at a united, a safer and a more peaceful Indonesia, and a just, democratic and prosper Indonesia. Deplu as the main institution to conduct the nation foreign policy is involving other stakeholders to maintain the Unitary State of the Republic of Indonesia and to prioritize the main agenda of the President Yudhoyono administration.



Deplu’s vision is formulated in 7 statements of mission called the Sapta Dharma Caraka which are (1)to maintain and increase international support and recognition to the territorial integrity and sovereignty of Indonesia; (2) to achieve a more prosper Indonesia through development and economic cooperation, trade promotion and investment, job opportunities, and technology transfer; (3) to increase Indonesia’s role and leadership in the integration process of ASEAN, to have active role in the Asia Pacific, to build the a strategic partnership among Asia-Africa countries and developing countries; (4) to enhance bilateral, regional, international cooperation in every domain and to increase Indonesia’s initiative and contribution to international peace and to strengthen multilateralism; (5) to assert Indonesia’s profile and image in international fora as a democratic, pluralist country which upholds the respect for human rights and the promotion of international peace; (6) to increase the service and protection to the Indonesian citizen abroad and to maintain the humanitarian diplomacy in support of the emergency, the reconstruction and rehabilitation phase in Aceh after the earthquake and tsunami; (7) to continue to self-restructure in order to increase the institutional capacity building, the corporate culture of Deplu and to upgrade the professionalism of Indonesian Diplomats with its main role in foreign policy-implementation.



II. The Portrait of Regional Surrounding



The integration process in East Asia is growing steadily fast. This is also part of the important role of ASEAN as a regional grouping in Southeast Asia. The Ninth ASEAN Summit agreed on the establishment of an ASEAN Community in 2020 that is lying to three pillars (Politic and Security, Economic, and Socio-cultural Community), each of which member countries have agreed to envisage in particular through the implementation of the Plan of Action. The ASEAN+3 Summit in Vientiane had also resulted agreement to the initiative of convening the first East Asia Summit in Malaysia in the end of 2005. This has reiterated ASEAN as the driving seat in the integration process in East Asia.



The issue of managing strategic resources in East Asia has gained much attention due to the following reasons: First, after the Cold War era, conflicts over natural resources, mainly oil and natural gas, are drastically increasing compared to ideological conflicts. Oil and gas have become the major need for industrial-based countries to maintain the economic growth. Due to its importance, governments have to ensure the adequate reserve of these natural resources so they can have enough stock to distribute them with reasonable price to their respective peoples. Some territorial conflicts in East Asia mainly in regions believed to be rich in natural reserve such as the Spratly islands and Ambalat confirm how sensitive the issue of natural resources, mainly oil and gas are.



The East Asia region including Southeast Asia where Indonesia is situated is identified to be very dynamic. The economic growth in China in the last 15 years has brought positive impacts to the surrounding countries. Besides Japan and South Korea, India emerges as another important economic potential. The rise of India in the last two years has brought about new dimension to economic relations among countries in the region, which eventually influence the political-security relations and the efforts to regional integrity.



With regard to the security in Malacca Strait, there had been efforts to adopt an equal perception among the littoral states (Indonesia, Singapore and Malaysia) about the overall problems faced, which are the security, the safety of navigation and the protection of the environment. Security in the wider sense does not only encompass piracy, but also smuggling and other illicit trades. The Ministerial Meeting in Batam, 1 August 2005, agreed to promote international cooperation with the user states based on the principle of “burden sharing” mainly on the capacity building of the three littoral states.



III. The Implementation of Foreign Policy

1. Indonesia and ASEAN



ASEAN has been the main pillar of Indonesia’s foreign policy. ASEAN functions as the main vehicle for Indonesia to undertake cooperation with countries in Southeast Asia with the aim to achieve its national goals. Through ASEAN, Indonesia could project the principal values of regional resilience and non-interference to countries outside the region in order to have a conducive environment that would benefit to the economic growth of the region.



Since the early establishment of ASEAN, Indonesia had put efforts to upholding values of mutual respect, non-interference in domestic affairs of other countries, the non-use of force and the priority of consultations and consensus in decision-making process. Indonesia also plays important role in setting up agreements and modalities in ASEAN, which are among others: Declaration on Zone of Peace, Freedom, and Neutrality (ZOPFAN, 1971), ASEAN Concord (1976), ASEAN Declaration on South China Sea (1992), ASEAN Regional Forum (ARF 1995) and ASEAN Community (2003).



Despite differences in cultures, geographical conditions, political systems and conditions of welfare, the ASEAN member countries have shown great commitment to put forward cooperation in achieving common benefit and prosperity. In this regard, Indonesia’s foreign policy in the era of globalization should maintain the cooperation to achieve substantial progress mainly in conflict resolution and economic integration in Southeast Asia region.



Indonesia will continue playing a strategic role for the betterment and the integration of ASEAN. Indonesia’s role in Southeast Asia is also proven by its participation in the peace mission to the conflict in Cambodia and in South Philippines; the initiative of developing humanitarian diplomacy and the active participation in building the East Asia community.



The first East Asia Summit convened on 14 December 2005 entailed the participation of 10 ASEAN member countries and 6 other key countries in the region: Australia, China, India, Japan, South Korea and New Zealand. The outcome of the Meeting was a joint agreement to build an East Asia Community where cooperation will be enhanced with a view to build peace, stability and economic progress in the region.



The Meeting also entailed different perception on the sense of “Community” itself. Some put a meaning of a “free single market community” and some envisage it to be a regional forum for politic consultation and security cooperation. Meanwhile, Indonesia and some other countries attach a meaning to the “community” as a group of countries that put forward the political, economic and socio-cultural issues as recommended by East Asia Vision Group as an evident evolution of ASEAN+3.



In the coming years, the active participation of Indonesia in the establishment of an East Asia Community should affirm Indonesia’s position as one dynamic market in the world. Indonesia’s involvement will help maintain a good environment in East Asia since East Asia Summit will accommodate important countries in the region by involving them in a decision-making process based on consensus. To a wider extent, Indonesia would have more opportunities to raise its profile by taking initiatives to overcome emerging issues in the region, in particular regarding conflict resolution, energy cooperation and humanitarian diplomacy.



2. Indonesia’s bilateral relations with Countries in Asia-Pacific Region.



Southeast Asia



Indonesia’s relation with countries in Southeast Asia began when Indonesia proclaimed its independence on the 17th of August 1945. Several fora whether regional and international had been initiated by Indonesia together with other countries. When ASEAN was established, Indonesia’s relation with Malaysia, Singapore and Thailand began to improve. The three countries exercised the most degree of intense relation with Indonesia. In principal, the bilateral relation between Indonesia and Malaysia has been going well due to the convening of several formal meetings such as the Annual Summit Consultation Indonesia-Malaysia and Joint Commission, and other meetings such as General Border Committee.



The problem in the bilateral relation of Indonesia-Malaysia would relate to matters of border maritime delimitation, labor, cooperation on the eradication of illegal logging, and border issues. These problems however do no affect the close relationship between Indonesia-Malaysia.



With regard to the bilateral relation with Singapore, there has been an enhancement namely on the cooperation in the field of defense, counter-terrorism, communicable diseases such as avian influenza, and tourism promotion. Furthermore, problems with regard to extradition and maritime borders between the two countries have reached important progress namely on the technical meetings between both parties that have so far undertaken 6 meetings which also include the chapter by chapter discussion of the consolidated draft. Indonesia’s relation with Thailand has been going well since there have not been any major conflicting issues. Thailand has also been supportive to Indonesia’s role in regional and international fora.



Indonesia has also been enjoying close relations with Brunei Darussalam and the Philippines, which is manifested by the establishment of an economic sub-regional cooperation known as Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). In this regard, there have been senior officials’, ministerial and summit meetings in 2005 where Indonesia had succeeded in incorporating several project proposals in the sectors of tourism, fishery and infrastructure.



Bilaterally, the good relation between Indonesia-Brunei has been marked by the aid extended by Brunei to the earthquake and tsunami victims in Aceh and North Sumatera as much as US$ 100.000, air transports helicopters, medical personal and aids.



Meanwhile, the relation with the Philippines has been increasing gradually illustrated by cooperation in various fields aside from the good understanding from both parties on issues of regional and international interest. In the security field, there has been an agreement on handling border problems mainly on the prevention of the usage of the Philippine territory as cross-border passage by transnational criminals. Furthermore, there are still more matters that need to be addressed such as maritime delimitations in Laut Sulawesi and fishery, which is now being discussed through the forum of Joint Permanent Working Group on Maritime and Oceans Concerns.



To build a full integrity in Southeast Asia, Indonesia deems important to undertake an intensified cooperation with countries located in the delta of Mekong Lake. Indonesia’s intention was demonstrated by its peaceful involvement in the conflict resolution in Cambodia. Indonesia also supported Cambodia, Lao, Myanmar and Vietnam to become members of ASEAN.



Indonesia and Vietnam have been enjoying the most satisfying bilateral relation since both countries share common vision on the matter of East Asia integration through the format of East Asian Summit. Moreover, both countries have been exercising cooperation in education and law enforcement field.



Cooperation with the governments of Cambodia and Lao have been conducted in a more technical way such as the convening of Joint Commission with Cambodia and also The Training to increase the Lao Human Resources through the Technical Cooperation among Developing Countries.



Unfortunately, cooperation with the Government of Myanmar has yet reached a significant progress considering the internal problem it is facing. The Department of Foreign Affairs of the Republic of Indonesia deems that there is yet progress in the democratic and human rights condition in Myanmar. Indonesia fully supports the implementation of the Roadmap by Myanmar as a guide to democratization. In this regard, Indonesia’s support is under lied by the principle of the respect of non-intervention in the domestic affairs of other countries. Member countries of ASEAN are unlikely to be satisfied with the non-transparence attitude the government of Myanmar has been adopting.



East Asia



Indonesia’s relation with major countries in East Asia region namely China, Japan and South Korea have been carried out since 1970’s through activities of trade and investment, which have benefited Indonesia’s economy. Japan has been a donor country, which also offers loans to Indonesia. An economic agreement is now being discussed between the two countries. With Korea, Indonesia has been enjoying cooperation on investment and export-import activities.



In 2005, Indonesia and China had agreed to establish a strategic partnership out of which it would provide a promising opportunity for Indonesia to benefit on the increase of export value, human resource, infrastructure and the defense capability. The trade volume augmented twice as much since the relation of the two countries was normalized in 1999. Meanwhile, the inter-governmental dialogue has been conducted through several forums of consultation and joint commission. The people to people contact is being encouraged by the realization of exchange programs and the inauguration of consulates.



Bearing in mind of the economic and military power of China along with its political influence in the region, Indonesia could benefit the momentum in order to assert its stance by encouraging China to participate in numbers of framework cooperation. By involving China in decision-making process, this would lessen the conflict potential that might be caused by the growing Chinese military strength, some of which is particularly deployed in the South China Sea.



In order to avoid duplication between the Indonesia-China strategic partnership agreement and the agreements previously established by Indonesia-China, Indonesia should urge all parties to accomplish all concrete targets such as the establishment of a dynamic business and trade association, cooperation in the development of military industry and training, and the negotiation to protect Indonesian manufacture products from the Chinese products.



The bilateral relations Indonesia-South Korea mainly resides on export-import activities. Korea had also delivered aid to the natural catastrophe victims in Aceh and North Sumatera as much as US$ 600.000, 6 trucks, 123 medical personal and 160 military personals.





Southern Asia (India)



Being a fast-growing country in the economic, technology and military domain, India possesses all the potential to become a major power in the coming years. This is reflected not only by the increase of its Gross Domestic Product which has reached 6,8% in 2004, but also by the steady competition among major powers mainly the US, European Union and China to establish bilateral pact with India. The look east policy which India had adopted since 1996 had been an effective trigger to intensify cooperation with countries in Asia Pacific region.



Accordingly, the opportunity in developing cooperation between Indonesia-India, at governmental, private and people level has become evident. The cooperation between Indonesia-India has been carried out since the early years of Indonesian independence and is still ongoing. The frequency of mutual visits, meetings and agreements signed between both countries demonstrate India’s significant meaning to Indonesia. When President Yudhoyono met PM Manmohan in April 2005, he expressed his expectations that cooperation between both countries should be continued and sustained.



Indonesia and India have been enjoying an increase on trade relation along the period 2004-2005, with a surplus on the Indonesian side. Indonesian exported products to India are mainly vegetable oil, chemical substance, and minerals. In investment area, India is keen on chemical, construction and heavy industry sectors. The economic relation between Indonesia-India needs to be enhanced with a view to maintain a stable economic growth through the Framework Agreement on Comprehensive Economic Cooperation.



In security domain, the bilateral cooperation is conducted through the exchange of military personals and the joint military training in the Indian Ocean. The security cooperation also include the security in the Malacca Strait. Both countries also realize the importance to undertake a joint effort in combating transnational crimes since both countries are experiencing similar problems mainly on the issues of separatism and terrorism. The implementation of such cooperation is being carried out through the signing of A MoU Indonesia-India to combat terrorism by the Foreign Ministers of both countries at the sidelines of the ASEAN Regional Forum (ARF) Meeting. This demonstrates the mutual support over the sovereignty and the territorial integrity of respective country.



Southern Pacific



The implementation of Indonesian foreign policy in the Southern Pacific is focused on gaining support from pertinent countries in the region, namely: Australia, New Zealand, Papua New Guinea, and Fiji as to maintain the territorial integrity and sovereignty of the Republic of Indonesia. The diplomacy applied to the eastern part is also concentrated on the permanent reconciliation between Indonesia and Timor Leste.



The relation between Indonesia-Australia has undergone many challenges and has culminated when Australia was ruled under the Labor Party (Paul Keating), in particular by the signing of Agreement on Mutual Security. The relation was put into test when suspect arouse on Australian involvement over the issue of separation of East Timor in 1999. Furthermore, the introduction of the pre-emption doctrine in 2004 has again challenged the bilateral relation. Nevertheless, diplomatic efforts to strengthen the relation are progressing mainly in the field of counter-terrorism reflected by the establishment of JCLEC (Jakarta Center for Law Enforcement Cooperation) in Semarang. Moreover, the humanitarian aid delivered by Australia to victims of natural catastrophe in Aceh and North Sumatera which amounted to as much as US$ 1 billion demonstrated the friendly relation of both countries.



Since the beginning of President Yudhoyono’s Administration, the bilateral relation has been progressing significantly. This is proven by the state visit of PM John Howard at the inauguration of President Yudhoyono in October 2004 in Jakarta. In 3-6 April 2006, President Yudhoyono paid visit to Australia where Leaders of both countries signed the Joint Declaration on a Comprehensive Partnership, which serves as an umbrella agreement to all cooperation agreements undertaken in the political, economic, and socio-cultural field. Nevertheless, the granting of temporary protection visa by the Australian Government to 42 asylum seekers of Papuan origin has again put the relation into test. This has subsequently compelled Indonesia to review the abovementioned Comprehensive Partnership.



The bilateral relation with New Zealand progresses when President Yudhoyono visited New Zealand where Leaders discuss about common efforts to enhance cooperation mainly in forestry, environment, air transport and education. Like Australia, New Zealand had promptly extended humanitarian aid to the earthquake and tsunami victims.



The Government of RI and Papua New Guinea have long time endeavored to cooperate bilaterally through the forum of Joint Ministerial Commission (JMC) and Joint Border Commission (JBC) in the political, economic development, and management of border areas. PNG has been showing support for the Indonesian territorial integrity by restricting the Free Papua Organization (Organisasi Papua Merdeka) to take part in the meeting of Kelompok Ujung Tombak Melanesia (MSG) in Goroka, PNG in 2005 and by interdicting the discussion over Papua as one of the agenda items of the Meeting of the Pacific Island Forum.



Indonesia has developed cooperation with Fiji, among which is the convening of the Leaders’ Bilateral Meeting in Jakarta in 2005 in which Fiji reiterated its strong support for the territorial integrity of the Unitary State of RI. The bilateral cooperation has been conducted mainly in agricultural training, financial aid and cultural scholarship.



Indonesia’s engagement with Melanesian countries in the Pacific is reflected by its active participation in the regional fora such as the Pacific Island Forum and the Southwest Pacific Dialogue out of which have resulted a political statement affirming that the said fora will never be utilized to show support of Papua’s independence.



As a dialogue partner to PIF, Indonesia plays as a mediator between PIF and ASEAN by sharing ASEAN’s experiences in handling security issues and regional development as well as Indonesia’s achievement in: Reconstruction of Aceh; the Peace Process in Aceh and the Special Autonomy in Papua. Indonesia also facilitates the PIF member countries to participate in counter-terrorism ministerial meetings known as the Bali Process. Meanwhile, ministerial meeting with SWPD member countries (Indonesia, Australia, New Zealand, Papua New Guinea, The Philippines nd Timor Leste) mainly discuss cooperation on socio-cultural and security issues (in particular terrorism an transnational organized crimes).



The reconciliation process with the Government and the People of Timor Leste has entered a new era with the signing of Commission of Truth and Friendship (CTF) by both Leaders. The mutual visits among high ranked officials from both sides increase as to solve problems between the two countries, which is among others the issue of land borders out of which 96% is completed. On economic domain, Indonesia is the main export destination country for Timor Leste’s products and at the same time Indonesia is the main importer country to TL basic needs.



Indonesia attaches great concern to the development process in Timor Leste that has great influence to the overall security and stability in the Pacific region. In this regard, Indonesia fully supports the trilateral cooperation known as the Tripartite Consultation with Indonesia, Timor Leste and Australia as the members. The first meeting held in Bali in 2003 agreed to resolve the East Timorese refugees’ issues, and to put forward practical cooperation on training and education, as well as to eliminate barrier trade.