FOREIGN
RELATIONS
Since independence in 1945, Indonesia has espoused a "free and active" foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the "New Order" government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto's ouster in 1998, Indonesia's Presidents have preserved the broad outlines of Soeharto's independent, moderate foreign policy. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia's relations with the international community.
A cornerstone of Indonesia's contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam's invasion of Cambodia in 1979. The security policy aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, in which 22 countries participate, including the United States. At ASEAN's Singapore Summit in November 2007, the organization's members signed a new charter, a small step toward the agreed goal of creating an ASEAN Community to propel greater integration in the areas of political and security affairs, economics, and socio-cultural affairs. Indonesia was a strong proponent of further integration. Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992-95, Indonesia led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent leader of the Non-Aligned Movement.
Indonesia often supports NAM and Group of 77 (G-77) foreign policy views, taking positions regarding human rights contrary to the United States. In May 2005, the Yudhoyono administration, in a major effort to reinvigorate its leadership of the NAM and reset the movement's future course, hosted an Asia-Africa Summit to commemorate the founding of the NAM in Bandung, Indonesia in 1955.
A secular state, Indonesia has the world's largest Muslim population and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions while providing a moderating influence in the OIC. President Wahid, for example, pursued better relations with Israel; Foreign Minister Wirajuda participated in the November 2007 Middle East peace conference in Annapolis.
After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, Western Europe, Australia, and Japan, through the Intergovernmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Donors in recent years have expanded assistance to Indonesia, due to its rapid democratic consolidation.
Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soeharto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies.
In 2008, Indonesia finalized its Economic Partnership Agreement (EPA) with Japan, a significant trade partner and Indonesia's biggest foreign investor. The agreement is Indonesia's first bilateral free trade deal and exempts Indonesia from 90% of Japanese import duties.
President Yudhoyono has sought a higher international profile for Indonesia. In
March 2006, Yudhoyono traveled to Burma to discuss democratic reform and visited
several Middle Eastern countries in April and May 2006. Yudhoyono delivered a
major speech in Saudi Arabia, encouraging the Muslim world to embrace
globalization and technology for greater social and economic progress. In
November 2006, Indonesia sent about 1,000 peacekeeping troops to southern
Lebanon to be part of the UN Interim Force in Lebanon (UNIFIL) and replaced
those troops with a second contingent a year later. In 2007 and 2008, Indonesia
held a non-permanent seat on the UN Security Council. President Yudhoyono has
also developed strategic partnerships with several countries, including the
Netherlands. In November 2008, President Yudhoyono suggested the U.S. and
Indonesia work together to build a more strategic partnership.
U.S.-INDONESIAN
RELATIONS
The United States has important economic, commercial, and security interests in Indonesia. It remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits, particularly the Malacca Strait. Relations between Indonesia and the U.S. are positive and have advanced since the election of President Yudhoyono in October 2004. The U.S. played a role in Indonesian independence in the late 1940s and appreciated Indonesia's role as an anti-communist bulwark during the Cold War. Cooperative relations are maintained today, although no formal security treaties bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased steadily since 2002, as terrorist attacks in Bali (October 2002 and October 2005), Jakarta (August 2003 and September 2004), and other regional locations demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating territorial disputes in the South China Sea. During Secretary’s Clinton’s visit to Indonesia in early 2009, she and Foreign Minister Wirajuda announced that the U.S. and Indonesia would begin discussions on developing a comprehensive partnership between the two countries.
The U.S. is committed to consolidating Indonesia's democratic transition and supports the territorial integrity of the country. Nonetheless, there are friction points in the bilateral political relationship. These conflicts have centered primarily on human rights, as well as on differences in foreign policy. The U.S. Congress cut off grant military training assistance through International Military Education and Training (IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor when Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring independence.
Separately, the U.S. had urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. teachers near Timika in Papua province. In 2005, the Secretary of State certified that Indonesian cooperation in the murder investigation had met the conditions set by Congress, enabling the resumption of full IMET. Eight suspects were arrested in January 2006, and in November 2006 seven were convicted.
In November 2005, the Under Secretary of State for Political Affairs, under authority delegated by the Secretary of State, exercised a National Security Waiver provision provided in the FY 2005 Foreign Operations Appropriations Act to remove congressional restrictions on Foreign Military Financing (FMF) and lethal defense articles. These actions represented a reestablishment of normalized military relations, allowing the U.S. to provide greater support for Indonesian efforts to reform the military, increase its ability to respond to national and regional disasters, and promote regional stability.
Under the terms of the FY 2008 FOAA, signed into law in December 2007, Congress did not reimpose restrictions. However, it prevented a portion of U.S. security assistance from being released before the Secretary of State reported on the status of certain measures of military reform, of accountability for past human rights abuses, of public access to Papua, and of the investigation into the 2004 murder of a prominent human rights activist.
Regarding worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Indonesia's slow economic recovery has pushed more workers into the informal sector, which reduces legal protection and could create conditions for increases in child labor.
Development Assistance from the United States to Indonesia
The U.S. Agency for International Development (USAID) and its predecessor
agencies have provided development assistance to Indonesia since 1950. Initial
assistance focused on the most urgent needs, including food aid, infrastructure
rehabilitation, health care, and training. Throughout the 1970s and 1980s, a
time of great economic growth in Indonesia, USAID played a major role in helping
the country achieve self-sufficiency in rice production and in reducing the
birthrate. Today, USAID assistance programs focus on basic and higher education,
democratic and decentralized governance, economic growth, , health, water,
sanitation, and the environment. Future programs will place a greater emphasis
on energy.
The United States was one of the lead donors in the reconstruction efforts in the tsunami-hit area of Aceh. Most of the U.S. tsunami relief program is complete, although our efforts toward the construction of the Aceh west coast highway continues. The U.S. will remain actively engaged in conflict prevention and resolution efforts in Aceh.
Improving the Quality of Decentralized Education: In October 2003, President Bush announced a $157 million Indonesia Education Initiative for 2004-2009 to improve the quality of education in Indonesia. This initiative is a cornerstone of the U.S. Government assistance program in Indonesia, directly responding to Indonesia's priorities and reflecting a joint Indonesia-U.S. commitment to revitalize education for the next generation of Indonesia's leaders. Since the initiative began in 2005, more than 1,476 schools, 23,612 educators, and 345,983 students have benefited from the assistance to improve teaching and learning, education governance, community involvement in school management, and public-private alliances. The initiative has also sparked donor interest toward increased coordination and cooperation both at the national and field levels. By 2010, the program will promote ownership of new methods for delivering basic education assistance directly to the local level where it can be more effectively and accountably targeted. Programs include:
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Decentralized Basic Education (DBE): As the main component of the Indonesia Education Initiative, the Decentralized Basic Education Project focuses on improving the quality and relevance of basic education in primary and junior secondary schools. Through technical assistance and training, the program has three goals: to assist local governments and communities to manage education services more effectively; to enhance teaching and learning to improve student performance in key subjects such as math, science, and reading; and to ensure that Indonesia’s youth gain more relevant life and work skills to better compete for jobs in the modern economy. USAID successfully utilizes public-private alliances to mobilize corporate sector resources for education. In partnership with ConocoPhillips, USAID is helping rehabilitate schools damaged by the May 2006 earthquake in Yogyakarta as well as Central Java; and Intel is helping teachers use technology in their classrooms. Partnerships with three U.S. universities--the University of Pittsburg, Florida State University, and the University of Massachusetts--and 14 Indonesian universities are enabling teachers participating in the program to receive academic credit for their work, helping them meet new Government of Indonesia recertification requirements. DBE also promotes the use of information technology for education; the importance of early childhood education; in-service teacher training; and non-formal work and life skills.
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Opportunities for Vulnerable Children: This program prepares the foundation for an inclusive education system by focusing on the educational rights and needs of children with visual impairments (blindness and low vision) by using an effective model for inclusion of students with visual impairments within the public education infrastructure that benefits both students with visual impairments and other disenfranchised populations. These activities have led to a substantial increase in the number of children with visual impairments attending school, and increases in the availability and quality of inclusive education services. Replicable models are being developed to expand the reach of the program to Aceh, South Sulawesi, and Central Java. In partnership with Indonesian local universities and Hilton Perkins International, a pre-service university-level program is developed to equip new teachers with effective teaching strategies and clear understanding of children with special needs.
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Sesame Street Indonesia/Jalan Sesama: In partnership with the Sesame Workshop, USAID is supporting the development of a new Indonesian co-production of the renowned Sesame Street television show. Indonesia’s “Jalan Sesama” is one of the largest partnerships between USAID and the Sesame Workshop. By watching “Jalan Sesama” millions of Indonesian children will be better equipped to start and stay in school. The program went on the air in 2007 and more than 3 million Indonesian children have viewed the broadcast. The show is currently ranked second in its time slot.
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Higher Education: The Indonesia Education Initiative, run by the Public Affairs Section (PAS) of the U.S. Embassy, complements USAID’s Basic Education Programs with a range of educational scholarships and exchanges, and English language learning opportunities. A partnership with the University of Kentucky is assisting three Indonesian universities to upgrade their academic programs in areas critical for economic growth such as agriculture, business, engineering, and public administration. A three-way partnership between USAID, the Government of Aceh Province, and Chevron supports the development of the Aceh Polytechnic, a new institution to provide quality education in applied technology fields such as information technology and electrical engineering that are in high demand in the region. A far more robust higher education program by PAS and USAID will commence in late 2009.
Effective Democracy and Decentralized Governance: This objective aims to support democratic reforms by supporting effective and accountable local governance, addressing conflict and encouraging pluralism, and consolidating national-level democratic reforms.
Mitigation of Conflict and Support for Peace: USAID remains a key donor working to mitigate conflict and support peace in conflict areas, such as Aceh, Papua, Sulawesi, and Ambon. Assistance activities focus on: conflict resolution/mitigation; civilian-military affairs; livelihoods development in conflict areas; drafting and monitoring of relevant legislation; and emergency and post-conflict transitional assistance to conflict affected persons.
Fighting Trafficking in Persons: USAID is assisting the Government of Indonesia
and civil society to develop policies and procedures to prevent trafficking in
women, girls, and men and provide protection to survivors of trafficking. The
USAID Trafficking in Persons program is expected to end in late 2009.
Justice Sector Reforms: This includes support for the bureaucratic reform
efforts of the Attorney General’s Office through technical assistance and training for prosecutors. USAID also works with the Supreme Court and the Constitutional Court to develop a more effective, professional, transparent, accountable, and independent executive branch.
Legislative Strengthening: USAID provides institutional support to the National
House of Representatives, National Regional Representative Council, and over 60
district legislative councils. Activities include promoting constituency and
media outreach; developing the capacity to draft and analyze legislation and
operational budgets; and supporting legislative commissions to carry out their
functions.
Local Governance Strengthening and Decentralization Support: This activity
supports Indonesia’s decentralization through assistance to more than 60 local governments to increase governmental accountability and transparency, strengthen the local legislative process, promote citizen engagement, improve the planning and budget process, and promote more responsive public services. At the national level, USAID supports the Government of Indonesia and civil society to improve decentralization policies.
Promoting Democratic Culture: USAID supports civil society organizations and
government institutions to strengthen democratic civic culture, respect for
pluralism, religious diversity, and the rights of women and minority groups.
Activities under this program include civic education, advocacy, engaging
traditional leaders, building networks to support tolerance and pluralism, and
assisting the government in reviewing policies that conflict with the
constitution and human rights standards.
Elections and Political Process: USAID supports the 2009 parliamentary and presidential elections through an elections support package that includes political party development, election administration, voter education, election monitoring, and oversight and strengthening of the legal framework.
Tsunami Reconstruction: The U.S. Government was one of the first donors to respond to the disaster. Through numerous grants to non-governmental organizations (NGOs), international organizations, and UN agencies, USAID has helped stabilize the humanitarian situation in Aceh, avert a public health crisis, and provide relief services to survivors.
Rebuilding Shelter and Key Infrastructure: USAID is assisting communities by providing much needed shelter, working with the Indonesian Government to rebuild key infrastructure and ensuring proper mapping and planning is considered through local cooperation.
Restoring Livelihoods: USAID enables communities to direct capacity building to
benefit people at the local level. USAID's Community Based Recovery Initiative
is working with 59 villages to organize local capacity-building initiatives.
Strengthening Capacity and Governance: USAID is providing assistance to restore
local government services in Aceh, working to increase governmental
accountability and transparency, strengthen the local legislative process,
promote citizen engagement and civil service reform, and improve the delivery of
basic services.
Economic Growth Strengthened and Employment Created: Assistance to the Indonesian Government and private sector focuses on sustaining
growth and creating jobs by improving the trade and investment climate,
increasing competitiveness in key agribusiness and industry sectors, and
enhancing the safety and soundness of the financial system. USAID is working
with Indonesians to ensure that future generations enjoy an increasingly
prosperous, democratic, and stable country.
Trade and Investment Climate: Efforts to promote a transparent and predictable
legal and regulatory business climate aim to reduce the hidden costs of doing
business, increase certainty, promote good governance, enhance trade and
investment, and create jobs.
Agribusiness and Industry Competitiveness: Assistance to leading agribusiness and industry sub-sectors fuels growth, exports, jobs, and prosperity. These efforts also drive increased productivity and national competitiveness by forging stronger public and private sector partnerships.
Financial Sector Safety and Soundness: Assistance to key financial and non-bank
financial institutions helps build a sound financial infrastructure through
improved oversight, transparency, and governance.
Improving the Quality of Basic Human Services: The USAID Basic Human Services Office provides assistance to Indonesia through
an integrated strategy that aims to improve the health of local communities
through support for maternal and child health, disease surveillance and control,
food and nutrition, and access to safe drinking water through better watershed
management and water treatment.
Environmental Services: This program supports better health through improved
water resources management and expanded access to clean water and sanitation
services. With a ridge to reef approach, partners improve water resource
management from watershed sources, along rivers, through cities, and to coastal
reefs. In the upper watershed, the program promotes forest management,
biodiversity conservation, and land use planning to protect a steady, year-round
source of clean water. Further downstream, the program strengthens municipal
water utilities to improve and expand piped water and sanitation services to
communities. Stakeholder forums link upstream and downstream communities to
build consensus on water and waste management issues. Marginalized urban
communities also benefit from the introduction of safe drinking water through
Air Rahmat, a home chlorination product being introduced to the market through a public-private partnership.
Health Services: Women, newborns, and children are the principal beneficiaries
of this integrated public health program. Working with the government, NGOs, and
other partners, USAID focuses on maternal, neonatal, and child health;
reproductive health; nutrition; HIV/AIDS, tuberculosis, malaria; and
decentralization of the health sector. Improved health-seeking behaviors within
communities link key hygiene promotion interventions, such as hand-washing with
soap to reduce diarrheal disease, a major cause of childhood death. USAID's
avian influenza (AI) program includes integrated public and private sector AI
surveillance and response for both animal and human outbreaks and behavior
change communications to minimize behaviors that facilitate the transmission of
AI to both poultry and people.
Food and Nutrition: Improving the nutritional status of Indonesians, USAID food
assistance targets poor communities. These activities directly affect women and
children through targeted supplemental feeding and nutritional education
activities. The food assistance program works with villages to construct public
latrines, washing facilities, and protected water stations and to organize solid
waste disposal efforts to better protect community health. Over one million
people will be direct recipients of USAID food assistance under this program.
NATIONAL SECURITY
Indonesia's armed forces (Tentara Nasional Indonesia, or TNI) total approximately 350,000 members, including the army, navy, marines, and air force. The army is the largest branch with about 280,000 active-duty personnel. Defense spending in the national budget accounts for 1.8% of GDP, but is supplemented by revenue from many military businesses and foundations.
The Indonesian National Police were a branch of the armed forces for many years. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 250,000 personnel, the police represent a much smaller portion of the population than in most nations.
Indonesia has peaceful relations with its neighbors. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders have said that they wish to transform the military to a professional, external security force, providing domestic support to civilian security forces as necessary.
Throughout Indonesian history, the military maintained a prominent role in the nation's political and social affairs. A significant number of cabinet members have had military backgrounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. With the inauguration of the newly-elected national parliament in October 2004, the military no longer has a formal political role, although it retains important political influence.
Principal U.S. Embassy Officials
Ambassador--Cameron R. Hume
Deputy Chief of Mission--John A. Heffern
Political Counselor--Joseph L. Novak
Economic Counselor--Peter D. Haas
Management Counselor--Lawrence C. Mandel
The U.S. Embassy in Indonesia is located at Jalan Medan Merdeka Selatan 3-5, Jakarta (tel. (62-021) 3435-9000). U.S. mail to the Embassy may be addressed to FPO AP 96520.
