Indonesia Foreign Relations

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Indonesia Foreign Relations

Foreign policy under President Soekarno (1949-66) was radical, characterised by Soekarno's self-styled role as leader of the Non-Aligned Movement. Under President Soeharto (1967-98), Indonesian foreign policy was marked by an emphasis on stability, with Indonesia developing a leading role in ASEAN, APEC and the Non-Aligned Movement but also maintaining good relations with the West. President Yudhoyono has maintained an emphasis on Indonesia's traditional "free and active" foreign policy settings, and in that context has indicated Indonesia's increasing willingness to become involved in regional and international issues, including in the Middle East. Indonesia's non-permanent membership of the United Nations Security Council, which expired in December 2008, has seen its stance on a number of issues come to increased international notice.

Indonesia is a leading member of the Association of South East Asian Nations (ASEAN), and has been at the forefront of moves to renew the body, particularly in the drafting of a new ASEAN Charter (signed by leaders at the Sinagpore ASEAN Summit in November 2007 and entered into force in December 2008) and the establishment of an ASEAN Community.

Indonesia was vaulted into the international fight against terrorism after the Bali bombings in 2002. These were followed by the bombings of the Marriott Hotel in 2003 and outside the Australian Embassy in Jakarta in 2004, and smaller backpack bombings in Bali in 2005. Since then there have been no anti-Western terrorist attacks. There have also been terrorist attacks on domestic targets, predominantly in Maluku and Central Sulawesi during the period 1999-2005.

Japan, ASEAN countries (especially Singapore), the United States, the EU and Australia are important export markets and sources of investment for Indonesia. Indonesia's economy is reasonably well integrated into international markets, with exports equivalent to 25% of GDP. Indonesia is a capital importing country. Foreign investment declined sharply after the 1997 financial crisis, but has shown some signs of recovery since 2007.