Monday, September 17, 2012

A changing Indonesia in the eyes of the United States


Tasa Nugraza Barley, Jakarta | Opinion | Sun, September 16 2012, 10:25 AM

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Beyond the 1,000 police personnel deployed around the capital during the recent two-day visit by US Secretary of State Hillary Clinton, there was an important message she was implicitly conveying: Indonesia is a very important partner to work with.

Since her appointment as secretary of state, a position regarded as the most prestigious in the US Cabinet, Clinton has visited Indonesia twice, complementing President Barack Obama’s trip in 2010.

The reason behind these three formal visits of the two highest-ranking US officials in less than three years must be deeper than the fact that President Obama spent a few years living in Jakarta when he was a boy.

Clinton’s visit was more than just ceremonial. Although it was a brief one, her visit was a sign that the US is looking for a strong, sustainable relationship with Indonesia, and that’s something we should all be proud of.

Indonesia, a country that a decade ago was considered an economic failure, has successfully turned itself into a new political and economic force in the region.

During the Soeharto regime, Indonesia was the true leader of the Association of Southeast Asian
Nations (ASEAN). But when our economy plunged to the bottom of the pool in the late 1990s, our political strength in the region slowly faded away.

However, due to our economic recovery and relatively stable political condition, it is a different
situation now.

This year, Indonesia’s political resurgence in the region was marked by its strategic diplomacy in mediating the disputes over the South China Sea, a resource-rich area contested by several Southeast Asian countries, such as Brunei, Malaysia and Philippines, and the world’s new emerging power, China.

For the first time in the history of ASEAN, since its establishment in 1967, the 10 members failed to issue the traditional joint communique at the end of the association’s recent summit in Cambodia.

Tensions between the ASEAN members heated up when Cambodia, which is a close ally to China, refused to read a statement mentioning Scarborough Shoal, an area in the South China Sea that recently sparked both political and military tensions between on the one side, Vietnam and the Philippines and, on the other, China.

In politics, as it is in international relations, it is all about momentum. And it was Indonesia, a country with the largest population in the region, which decided to grab this rare
opportunity in an attempt to regain its crown.

With its political supremacy declining in the Asia-Pacific region over the last few years, overshadowed by China’s ability to push its agenda due to its fast-growing economy, the US needs to build stronger alliances with countries like
Indonesia.

Although the US government has repeatedly mentioned its objectiveness over the South China Sea, everyone knows that the area is too important to ignore. It is estimated that one-third of the world’s shipping passes through its waters, not to mention that the area is also believed to possess huge oil and gas reserves.

The United States is likely to use all its influence to ensure that China is not the only “owner” of the South China Sea. With the help of countries like Indonesia, the US hopes that Chinese expansion can be
reduced significantly.

Besides the politics, the United States cannot underestimate Indonesia’s economic potential. In 2011, US investment in the country reached US$2.5 billion, a figure that is predicted to double within the next two years.

With its stable, above-world average economic growth, Indonesia is among the few countries that is not impacted by the current European crisis, due in part to its low reliance on international trade. In addition, the country’s current strong economy is backed up by national consumer spending, accounting for about 60 percent of the nation’s
economic activities.

Given all these economic indicators, the US will only want to increase its investment in Indonesia, and Clinton’s visit should be seen as the US government’s effort to ensure that their companies and investors can enjoy political backup.

Although it is still too soon to announce that the US and Indonesia have a perfect alliance, the Indonesian government should be able to use this momentum as leverage to participate on the world’s political and economic stage. If not now, when? Some opportunities just don’t come a second time.

The writer is an associate at Royston Advisory, a public affairs and strategic communications firm.

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