FOREIGN
RELATIONS
Since
independence, 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 Bali Summit in October 2003, the organization undertook to create an ASEAN Community characterized by greater integration in the areas of political and security affairs, economics, and socio-cultural affairs. Indonesia was a strong proponent of this initiative. 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.
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.
Indonesia often supports Non-Aligned Movement (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.
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 holds a non-permanent seat on the UN Security Council.
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.
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 predecessors have provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training. Through the 1970s, 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 birth rate. Today, USAID assistance programs focus on basic education, democratic and decentralized governance, rebuilding after the tsunami, economic growth, health, water, and sanitation, , and the environment.
Improving the Quality of Decentralized Education: In October 2003, President Bush announced a $157 million Indonesian 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, more than 1,500 primary and junior secondary schools--secular and religious, public and private--in eight provinces, have participated. About 24,000 educators have been trained to improve the quality of teaching and learning, and more than 400,000 students are reaping the benefits. The program is expected to reach 9,000 schools by 2010, and local school districts have replicated the program to the benefit of another 650,000 students. Decentralized Basic Education (DBE): The Indonesia Education Initiative will increase the quality of basic education in primary and junior secondary schools, both public and private, and focus on three results: (DBE1) Local governments and communities more effectively manage education services; (DBE2) Enhance the quality of teaching and learning to improve student performance in key subjects such as math, science, and reading; and (DBE3) Youth gain more relevant life and work skills to better compete for jobs in the future.
Opportunities for Vulnerable Children: This program promotes inclusive education in Indonesia. Children with special needs--including visual and hearing impairments, learning disabilities, autism, and multiple disabilities-- are provided the opportunity to be educated in public schools. Replicable models are being developed to expand the reach of the program.
Sesame Street Indonesia: An Indonesian co-production of the award-winning television show targeting young children was developed and produced by the Sesame Workshop in New York with local Indonesian partners and USAID funding. The program went on the air in 2007 and millions of Indonesian children have viewed all or part of the first season.
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.
Anti-Trafficking In Persons: USAID's anti-trafficking programs work closely with the Ministry of Women's Empowerment and civil society groups in policy making, program development, victim support, and dissemination of information which will contribute to reducing the trafficking of women and children in Indonesia.
Justice Sector Reforms: Through the Democratic Reform Support Program and Justice Sector Reform Program, USAID's current Justice Sector programs provide technical assistance and training to judges, prosecutors and staff members at the Supreme Court, the Constitutional Court, and the Attorney General's Office.
Legislative Strengthening: Technical assistance and training are provided to strengthen the legislative and legal drafting skills of parliamentarians as well as provide institutional support to the National House of Representatives, National Regional Representative Council, and over 60 district-level legislative councils. Activities include promoting constituency and media outreach; developing the capacity to draft and analyze legislation and operational budgets; creating inter-party coalitions; encouraging legislative commissions to carry-out their functions, and perform strategic planning.
The Local Governance Support Program: Currently assisting more than 60 local governments, this program works 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.
Promoting Democratic Culture: USAID works with civil society organizations and government institutions to strengthen democratic civic culture, focusing on 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.
Media Development: USAID is currently supporting a new media development project entitled "Building on the Foundations: Strengthening Professional, Responsible and Responsive Broadcast Media in Indonesia." The goal of the program is to build professional, information-based local media that are responsive to the development and reform of districts across Indonesia.
Tsunami Reconstruction: The U.S. Government was one of the first donors to respond to the disaster, and remains one of the largest contributors to relief and reconstruction efforts in Indonesia. 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 creating jobs by improving the business and investment climate, combating corruption, increasing competitiveness in key sectors, and improving the safety of the financial system. USAID is working with Indonesians to ensure that future generations enjoy an increasingly prosperous, democratic and stable country.
Business Climate and Enterprise Development: Efforts to promote a transparent and predictable legal and regulatory business climate aim to reduce the hidden costs of doing business, to reduce uncertainty, and to promote trade, investment and job creation. USAID delivers technical assistance to leading industry sectors in an effort to fuel growth, exports, jobs, and prosperity. These efforts drive increased productivity and national competitiveness by forging stronger coalitions of public, private, and civil society advocates for legal, regulatory, and policy change.
Financial Sector Safety and Soundness: USAID is working to improve the oversight of bank and non-bank financial intermediaries in order to promote safety and soundness in the financial system and to improve 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, in order 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 impact women and children through targeted supplemental feeding and nutritional education activities. The food assistance program works with villages to construct public latrines, washing facilities, 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.
