In the framework of the China-ASEAN Free Trade Area, Sino-Indonesian trade has enjoyed an annual increase of 10 percent in recent years, exceeding $60 billion in 2011. Today, China has become the largest source of imports (excluding oil and gas) and second largest export market for Indonesia. Leaders of both China and Indonesia have vowed to achieve in advance the planned 2015 goal for bilateral trade to hit $80 billion. Susilo paid a state visit to China in March 2012. During the visit, the two sides signed 15 cooperation agreements, which exceeded $17.5 billion and focused on infrastructure and industry investment.

Furthermore, China has long maintained cooperation with Indonesia on international and regional issues. The two sides share a common view on regional security. Indonesia consistently adheres to maintaining peace and stability in the South China Sea and the Asia-Pacific region, and agrees with China on resolving South China Sea disputes through bilateral channels. Indonesia is willing to mediate these disputes, to the expectation of other ASEAN member states. Thus, the country could play a constructive role in South China Sea issues.

Indonesia is the only Southeast Asian member of the Group of 20 (G20) major economies. It has vowed to make positive contributions to global governance as a representative for other Southeast Asian countries and developing nations. At G20 summits, Susilo put forward a number of proposals in support of developing countries.

China and Indonesia share the same views on many global issues, including financial reform, climate change, environmental protection and energy development. As the largest Muslim country by population, Indonesia advocates a peaceful settlement on the Iranian nuclear issue and Middle East conflicts, and proposes eliminating the root of terrorism through poverty reduction. These stances are generally shared by China.

In addition to China, the United States stresses improving relations with Indonesia. Indonesia has an important strategic and geopolitical position, located between the Indian Ocean and the Pacific Ocean and holding the door of the Strait of Malacca, making the country an increasingly significant partner for the United States on many regional affairs, including counterterrorism, piracy crackdown, peacekeeping missions and disaster rescue. U.S. President Barack Obama treats Indonesia as an opportunity to enhance the security of the United States in Asia.

Indonesia also hopes that U.S. involvement in Asian affairs could balance China's growing influence in the Asia-Pacific region. In the view of Indonesia, the United States can continue giving the Asian economy strong impetus through its investment and market. But Indonesia opposes the containment of China by the United States, which it believes would create tension and threaten peace and stability in the Asia-Pacific region.

During a trip to Australia for a foreign policy and security meeting in March 2012, Indonesian Foreign Minister Marty Natalegawa warned the United States against Cold War-style containment of China. At the East Asia Summit on Bali Island in November 2011, not long after Obama announced the United States would station troops in Australia, Indonesia rejected attempts to put South China Sea disputes on the agenda of the summit it hosted despite strong pressure from the United States and the Philippines.

Advantages and challenges

In recent years, domestic economic growth and political stability have created the necessary conditions for Indonesia to implement assertive diplomacy. With its rising comprehensive national power, Indonesia is a more active member in multilateral diplomacy.

Indonesia's economy has maintained rapid growth since it recovered in 2002. According to statistics from the World Bank, Indonesia's GDP in 2002 was $195.66 billion, and the figure in 2011 reached $846.2 billion. Over the past 10 years, the average annual growth rate of Indonesia's economy has stayed at over 6 percent. The Indonesian president has vowed to make Indonesia one of the world's 10 biggest economies in the near future.

Politically, Indonesia restored order and stability after several years of sustained efforts. The financial storm struck Indonesia in 1997. A year later, the 30-year-long Suharto administration collapsed. After a period of turmoil, the country's transition to democracy achieved initial success. With the great efforts of the government, Aceh separatist activities have been curbed. The terrorist network of Jemaah Islamiah has been destroyed and security threats have been reduced remarkably. Furthermore, the Indonesian Government has enacted laws to protect the rights of ethnic minorities, bringing more equality and stability to the nation.

Despite significant achievements in Indonesia's diplomacy, the country faces challenges that will restrict the implementation of its assertive diplomatic strategy in the future if they cannot be adequately addressed.

Internally, serious corruption and religious strife have damaged the government's image, hampering the progress of its diplomatic mission. Indonesia ranks fifth in a corruption index published by Transparency International, an NGO aiming to advance anti-corruption globally. The Wahid Institute, a liberal Islamic research organization in Indonesia, reported a 16-percent rise in cases of religious intolerance, including threats of violence, arson and discrimination, between 2010 and 2011.

Externally, Indonesia has to keep a balance between ASEAN and other major powers. Asia is becoming increasingly important on the international political stage in the 21st century. As the Obama administration carries out its strategy of pivoting to the Asia-Pacific region, the competition of major powers in the region has intensified. In the pursuit of regional power, Indonesia is determined to complete its economic and defense modernization. But the strength of other ASEAN members is limited.

In order to achieve its objectives, Indonesia needs support from major powers outside the region. To this end, it has actively established partnerships with these countries. In cooperating with them, Indonesia has managed to promote its national interests to the utmost while maintaining a dynamic balance among major powers and securing its leading position in ASEAN. But this policy is questioned by other ASEAN member states that worry about the involvement of major powers in the region having an effect on the neutral position of ASEAN. They are concerned that it may turn ASEAN into an arena for great power rivalry—a prospect that does not bode well for the organization.

The author is an associate research fellow with the China Institute of International Studies

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