Abstract
Indonesia is the fourth most populated country in the world
and the third largest in Asia. It has a
long history of cultural development that was underdeveloped during colonial
domination. As a country it had to find
and develop a new identity. After more
than sixty years since becoming an independent country, it appears that
Indonesia has finally been able to successfully reinvent itself. It relationship with the US has often been
contentious but since 2009 the relationship experienced a complete turnaround. The change was directly related to the
election of President Barack Obama.
Having spent a portion of his childhood in Indonesia and being the son
of a Muslim immigrant, he was an instant hero in Indonesia. His presidency has coincided with that of
President Susilo Bambang Yudhoyono in Indonesia. Yudhoyono appears to have figured out how to
effectively integrate the traditional value of “deliberation and consensus”
into a modern democracy. His leadership is leading to improved
relationships with China and the US and greater prosperity for the people of
Indonesia.
* * * * * * * * * * *
Indonesia is a very unique country in many ways. Geographically it is made up of several
archipelagos spanning a region between the Pacific and Indian Oceans. It is the fourth most populated country in
the world and the third most populated country in Asia behind China and
India. The United States is the third
most populated country in the world.
Indonesia is a former Dutch colony and most of the developments in its
relationship with the US have occurred since independence in 1949 (Country
Profile: Indonesia, 2004). . Since independence Indonesia has struggled to
find an enduring balance between contemporary political structures and
traditional cultural practices.
Overlaying this struggle is the fact that Indonesia has more Muslim
citizens (88%) than any other country in the world yet it is not a “Muslim
State.” Like many Asian countries, in
spite of its struggles to establish healthy political stability, its economy
has seen dramatic improvement since independence. Quality of life indicators
such as average life span, healthcare availability, and poverty levels have
also substantially improved. With
foreign assistance it has managed to keep its head above water but it has not
yet fully capitalized on its potential.
Under President Obama the US has expanded its relationship with
Indonesia as a part of the “Pivot to Asia.”
Indonesian public opinion of the US improved dramatically after the
election of President Obama. This shift
in receptiveness has been referred to as the “Obama Effect” and paved the way
for an improved relationship.
This paper discusses the developments in the relationship between
the US and Indonesia. Indonesia’s
current economic and political conditions have been heavily influenced by the
impact of over a hundred years of colonial domination. Indonesia, like many former European colonies
in Asia and other parts of the world, appears to be subject to a double
standard in academic and non-academic writings.
It is as if an attitude that the people of Indonesia should be satisfied
with the “improvements” in their country in spite of the fact economic
conditions continue to lag far behind those of the US, Japan and Western
Europe. Finally, strengths and challenges for future development in Indonesia are
also discussed.
Historical Overview
There is evidence that modern humans lived in the area now known
as Indonesia 40,000 years ago (Country Profile: Indonesia, 2004). By 5,000 years ago the cultures originating
in the cultures of the interrelated archipelagos began to spread and have a
significant impact on an area as far west as Madagascar and east into the
Pacific. Cloves, found only in the Maluku Islands of Indonesia, had made their
way to the Middle East as early as 4,000 years ago. However,
specific artifacts which might tell the story of trade and interaction between
the peoples of the Indonesian archipelagos and other parts of the world have
been hard to come by. Artifacts
discovered that provide concrete information about the people and their activities
date back only to 400 B.C. Such evidence
confirms the development of well-organized societies and trade with India. Additional evidence is available indicating
the presence of well-developed kingdoms based on Buddhist and Hindu traditions
beginning around 550 A.D. Islam entered
the archipelago by the eleventh century but did not begin to make significant
gains in converts for about two hundred years (Country Profile: Indonesia,
2004).
Contact with China increased between the tenth and fourteenth
century. Mongol attempts to dominate Indonesia
during this period all failed. During
the Ming Dynasty (1368-1644) several attempts to exercise significant influence
and control over Javanese power all failed. attempts failed. It was around this time that Europeans began
to express a significant interest in the Indonesian archipelagos starting with
Marco Polo and then by the Spanish and Portuguese. The Dutch and the English began to become
involved in the area around 1600.
Europeans had a significant impact on trade and politics in the region,
but colonial rule was not established until the mid-nineteenth century (Country
Profile: Indonesia, 2004).
The Colonial Period
Establishing a Dutch Colony in Indonesia was not the primary goal
of the Dutch government in Amsterdam, but the economic realities for the Dutch
led to a dependency on the resources of Indonesia and the need to exercise
greater control over the region to maintain its trade and economic position
among the countries of Western Europe.
The economic reality combined with the popular view of Europeans as
being a superior variety of humans made it easy to justify the forcible
domination of the people of Indonesia.
Initially, the Dutch Colonial Rule incorporated a great amount of
tolerance for dissident opinion and allowed the development of several
indigenous political parties. Around
1900 with the development of the student organization, Budi Utomo, dissident opinion took a sharply
nationalistic turn and increasingly the demand was for Indonesian
independence. The early nationalist
leaders (many of them Dutch educated) believed that independence could be
achieved through negotiation with the Dutch government. The cultures of the region are based on
beliefs that consensus is always the preferable option. Early nationalist groups represented
different segments of the Indonesian population and included a variety of
religious and political beliefs.
Political parties interested in independence included Islamic
reformists, Marxists, and social-democrats.
Operating on the principle of consensus being the priority these groups
initially worked together to confront the Dutch. The motto became “one land, one nation, one
language.” In 1926 and 1927 uprisings
against the Dutch in West Java and West Sumatra led to the Dutch becoming less
tolerant and repressive towards calls for independence (Guan, 2006). The
repressiveness only served to radicalize the independence movement. Leaders such as Sukarno and Muhammad Hatta
were exiled by the Dutch only to return as an Independent Indonesia’s first
President and Vice-President.
As World War II began the conflict between
Indonesian Nationalists and the Dutch government was heating up but interrupted
with the occupation of Indonesia by the Japanese. At the end of the Japanese occupation the Sukarno
and Hatta returned to declare independence for the Republic of the United
States of Indonesia on August 17, 1945 (two days after the atomic bomb fell on
Nagasaki, Japan). However, the Dutch
attempted to reclaim Indonesia as a colony.
After a period of additional struggle with the Dutch, Indonesia’s
independence was recognized by the United Nations on December 27, 1949 (Guan, 2006).
The Challenge of
Independence
A common thread that runs through the various
cultures of the people of Indonesia relates to the value placed on reaching
agreement through “deliberation and consensus.”
Guan (2006) has suggested that this egalitarian value that is intended to be
inclusive and promote political stability may have actually contributed to
increased division. The initial
governmental structure adopted by the new independent government of Indonesia
was a parliamentary democracy modeled after the Dutch system. The basic rule for decision making in such a
democracy is 50% + 1. The result is that
instead of being more inclusive, political maneuvering could actually leave
smaller groups disenfranchised. The
early leaders of the newly independent Indonesia attempted to combine such a
system with the traditional value of “deliberation and consensus” with disastrous results. Several years of parliamentary democracy
failed to lead to the political stability and economic development that was
anticipated by Indonesian citizens. With
this failure President Sukarno began to call for what he called a “guided
democracy” that could more easily incorporate traditional Indonesian values
related to “deliberation and consensus” (Guan, 2006).
Up until the 1960’s the Indonesian
Communist Party (PKI) had a seat at the table within Indonesia. However, Indonesia considered itself a
non-aligned country. As the Cold War
began to intensify the pressure grew for Indonesia to pick a side. According to Guan (2006) the events leading
up to the failed coup attempt and the ouster of Sukarno was triggered by the
CIA. One view of the series of events
that took place in 1965 was that the CIA facilitated the failed coup attempt by
communist sympathizers in the military to provoke a counter coup that would remove
Sukarno and replace him with a leadership structure that was very favorable to
the US. With the support of the US, Major-General
Suharto, Commander of KOSTRAD, the military’s Strategic Reserve force, lead the
counter coup that saved Indonesia from becoming a communist regime. Sukarno was implicated as a supporter of the
communist and discredited. The military
action taken by Suharto, resulted in the massacre of about 500,000 Indonesian
communist and suspected communist with many others being arrested and
jailed. Suharto was given the authority
to do whatever was necessary to restore and maintain order. He established what he called the “New Order”
that emphasized economic and social growth while discouraging mass
participation in the politics of ideology that was encouraged by Sukarno (Guan,
2006).
Suharto’s New Order was embraced by
the US and Western European countries resulting in a substantial increase in
foreign aid and investment. The new
capital stimulated economic growth in Indonesia and its citizens began to
experience visible improvements in their lives.
Aid from the US alone increased from $200 million in 1967 to $4.8
billion in 1992. The substantial
increase in oil prices after 1970 also helped stimulate economic growth (Country
Profile: Indonesia, 2004). An average
GDP growth rate of 4.3% gave credibility to Suharto’s New Order which lasted
for 30 years.
The collapse of Suharto and his New
Order was due to fact that in spite of significant economic growth and
development in Indonesia, the primary beneficiaries of the growth were an elite
class of business people and government officials. By the 1990’s the amount of civil unrest
increased and with the collapse of the Soviet Union in 1989 there was less
motivation to turn a blind eye to Suharto’s often brutal use of military force
against civilians. International support
for Suharto evolved into international criticism of his heavy handed tactics in
maintaining political stability. The
final blow to Suharto’s New Order was the Asian financial crisis of 1997. Political repression, the war in East Timor, increasing
levels of inequality within society and finally the economic downturn saw an
end to support for Suharto both domestically and internationally.
In 1999, parliamentary elections were
held in Indonesia for the first time since 1955. The change in leadership reopened the door to
foreign aid and investment. The US began
warming up in its relations with Indonesia but did not make any significant
overtures to expand the relationship.
Anti-American sentiment during the Bush administration at the beginning
of the 21st century grew to an all-time low in Indonesia. America was seen as anti-Islam and as having
launched a war against Iraq mainly because it was a Muslim country (Guan, 2006).
However, as will be discussed later in
this paper a dramatic and unprecedented turnaround in Indonesian public opinion
was about to take place as America Inaugurated a new President in 2009.
Current Indonesian Economic
Status
Today Indonesia employs a market economy and is very active in
pursuing healthy economic relationships with the US, China, India, Japan and
others. In spite of a near complete
financial collapse at the end of the 20th century Indonesia has
managed to reestablish growth and development within its economy. Since 2000 it has made gains in several
categories such as GDP, GNI, percent at or below poverty level, and life
expectancy at birth (World Bank, 2013).
Indonesia’s 2012 GDP was $878.0 billion. Its population was 246.9 million resulting in
a per capita GDP of $3,557. In 2012 the
GDP for the US was $16.24 trillion, with a population of 313.9 million
resulting in a per capita GDP of $51,749 (World Bank, 2013). The Indonesian economy has established a more
favorable position globally and it is expected that their economy will continue
to experience growth.
Indonesia’s main trading partners are Japan, the European Union,
the United States, Singapore, and South Korea.
Indonesia recently has been experiencing a 65% trade surplus. It is one of the world largest producers of
liquefied natural gas and has a substantial petroleum industry as well. The manufacturing sector accounts for about
40% of GDP and employs about 20% of the workforce. Another 40% of GDP is accounted for by the
services sector and employs about 40% of the workforce.
The last ten years has in Indonesia has seen improved political
stability with a functioning democracy.
Outside investment and foreign aid is increasing and inflation has
slowed. Corruption has been a
significant problem for Indonesia but its anti-corruption efforts appear to be
having an impact. The level of
corruption has been decreasing steadily for more than ten years.
US-Indonesian Relations
In 1961 the US became the UN appointed mediator in a dispute
involving West Papua. The dispute
involved a plan by the Netherlands to grant West Papua it independence and the
Indonesian opposition to the plan claiming that West Papua was a part of
Indonesia. Confronted with the
possibility that Indonesia might seek the assistance of the Soviet Union in
annexing West Papua, the US position leaned toward support of the Indonesian
government. President John F. Kennedy in
explaining why he supported the annexation stated that as the West Papuans were
“living, as it were, in the Stone Age,” they would benefit by the modernization
the would come as a result of the annexation (Rutherford, 2013). The reality was that West Papuans were not
actually living in the Stone Age.
However, such rhetoric was useful at gaining public support for a position
that denied self-determination to the people of West Papua.
The attitude was similar to the attitude the Dutch had as they
began to dominate the people of Indonesia and subject them to a long period of
colonization. Only in the case of
President Kennedy the rhetoric was used in favor of an independent Indonesian
government. The US involvement in the
negotiations between the Netherlands and Indonesia marked the beginning of an
often contentious relationship between the two countries. President Kennedy was assassinated two years
later and Indonesian President Sukarno was removed from office in 1965. However, with the Cold War raging,
Indonesia’s next leader capitalized on the conflict between the two super
powers gaining favor with the US and being rewarded with military aid, foreign
aid, and US investment (Country Profile: Indonesia, 2004).
Sukarno’s replacement Suharto demonstrated his strong anti-communist views by
completely destroying the Indonesian Communist Party (PKI). In doing so he endeared himself to the US and
other Western European countries. As a
result the US and others became willing for many years to turn a blind eye to
the heavy handed authoritarian regime of Suharto. In 1975, the day after a visit by President
Gerald Ford and Secretary of State Henry Kissinger, Indonesia invaded and
annexed the former Portuguese colony of East Timor where a leftist leaning
political party had become the leading political force. Thus began East Timor’s long struggle for
independence from Indonesia (Timeline: US-Indonesia relations, 2010).
At the end of the Cold War the US and
others stopped looking the other way when it came to Suharto’s tendency to use
military force against his own people.
In 1991, in response to the Dili massacre the US Congress stopped
International Military Education and Training (IMET) assistance to Indonesia. This action marked the beginning of a long
period of contentiousness between the US and Indonesia. However, with the departure of Suharto in
1998 and the reestablishment of parliamentary elections in 1999 the US attitude
toward Indonesia began to warm (Murphy & Suryodiningrat, 2010).
The next major turn of events that
impacted US/Indonesian relations was the terrorist attack in the US on September
11, 2001. Initially, the Indonesian
government came out in support of the US and condemned the attack. However, when the US invaded Afghanistan and
launched a pre-emptive strike in Iraq, President Bush and the US government
were accused by the Indonesian government as favoring the attack and invasion
of Islamic countries over non-lethal diplomatic solutions. Public opinion of the US and President Bush
fell to an all-time low. In spite of the
antagonism from the Indonesian government the Busch administration worked
consistently to improve the relationship (Timeline:
US-Indonesia relations, 2010).
On December 26, 2004 a devastating
Tsunami in the Indian Ocean impacted Indonesia.
The US responded with 25 warships and over 13,000 people to assist in
relief efforts. In 2005, the US also
removed nearly all restrictions regarding military aid and effectively restored
normal relations on the military level.
As a result of the relief efforts and the removal of restrictions on
military aid, the relationship between the US and Indonesia warmed up
considerably.
The next major event in the improving
relationship between the two countries was the election of Barack Obama as
President of the United States. Not only
had President Obama spent part of his childhood in Indonesia but he was the son
of a Muslim immigrant to the US. Public
opinion in Indonesia of the American President went from an all-time low under
Bush to an all-time high under Obama. The shift in public opinion in Indonesia
became known as “the Obama Effect” and it paved the way for improved
cooperation between the two countries (Murphy & Suryodiningrat,
2010).
In 2010, the final military
restriction still in place was removed.
Also, that same year President Obama and Secretary of State Hillary
Clinton announced sweeping policy adjustments in the US relationship with
Indonesia that are designed to support the continued social and economic
development of Indonesia and have a positive impact on American business as
well. In December of 2010 the US opened
the @america Cultural Center in Jakarta.
It was developed in partnership with American tech companies and is
designed to inform Indonesians about America, Americans, and American products
(Onishi, 2011). Whether such centers
can further impact Indonesian public opinion of Americans is yet to be seen.
US Public Opinion of Indonesia
While it is very easy to find documentation of Indonesian public
opinion of Americans, finding documentation of US public opinion on Indonesia is another story. American seem to know very little about
Indonesia other than the fact that President Obama lived there as a child. Some have used this fact to make the argument
that he was actually born there and is not legally the President. Others have concluded that since his father
was Muslim and he spent time in Indonesia that he must be Muslim.
American public opinion about Muslims in general is far easier to
find. Perhaps such opinion is
exemplified by the woman at a McCain Town hall meeting during the 2008
Presidential campaign, who stated that Obama was a Muslim. It was stated as if being a Muslim was
equivalent to being a terrorist.
McCain’s response did not refute the connotation that being a Muslim was
a bad thing; he chose to simply affirm that Obama was not a Muslim and was a
good man. The exchange between McCain
and his supporter is a reflection of the opinion of many Americans. This automatic negative opinion of Muslims
has been described as Islamophobia.
Islamophobia is described as; An
exaggerated fear, hatred, and hostility toward Islam and Muslims that is
perpetuated by negative stereotypes resulting in bias, discrimination, and the
marginalization and exclusion of Muslims from social, political, and civic life
(Ali, Clifton, Duss, Fang, Keyes and Shakir, 2011).
However in the case of Indonesia, in spite of the fact that it is
88% Muslim and has the largest Muslim population of any country in the world,
it is not always perceived as a Muslim country.
Americans tend to be aware that Bali is in Indonesia and perceive it as
a great exotic place to visit. On the
other hand, Indonesia’s first President and Vice-President consciously chose
not to make Indonesia an Islamic Republic.
As a result, the Indonesian government does not present itself to the
world in the same way the leaders of Iran, Saudi Arabia, and the United Arab
Emirates would present themselves.
Indonesian cultural tradition tends to be more open than the culture of
many other Muslim countries.
Indonesia, Asia and the
World
Indonesian leaders during the past ten years have managed to
accomplish what both Sukarno and Suharto desired to do but failed. Susilo Bambang Yudhoyono, Indonesia’s current
President is finding a finding a way to effectively incorporate “deliberation
and consensus” into political practice (Spranz, Lenger & Goldschmidt, 2012). President Yudhoyono entered into a strategic
partnership agreement with China in 2005 (Hadi, 2012). Entering into such
an agreement with country that could easily over power you is perhaps risky and
provides no guarantees of continued compliance.
Then in 2010 President Yudhoyono entered into a strategic partnership
with the US. In doing so agreements with
both the US and China are strengthened.
With the possibility of pushing Indonesia closer to the US and away from
China, Chinese leaders must be willing to follow through on their agreement of
Indonesia. Likewise, the US would not
desire to be left out or excluded of the process in Indonesia’s relationship
with China.
Developing such relationships and remaining very active in the
leadership the Association of Southeast Asian Nations (ASEAN), Indonesia has
placed itself very strategically in the middle of the not only the Asian market
but has garnered a place on the global stage as well.
Strengths, Weaknesses,
Opportunities and Threats for Indonesia
As Indonesia continues its development in the 21st
century it has become acutely aware of the fact that it is in a position to
play a very active role in the development of Asian and global
development. Indonesia struggled in the
years shortly after independence with being able to implement effective democratic
processes that did not deteriorate into political gamesmanship and
conflict. In the early days after
independence Indonesia had to struggle with internal conflict among its people
and skepticism and doubt from the international community. However, it appears now that the current
government has found the path to balancing traditional cultural beliefs and
contemporary economic and political realities so that progress can be
sustained. Indonesia’s idea of
“deliberation and consensus” is definitely a strength. It has used this concept to establish a
reduction in domestic conflict and to develop and expand key relationships at
the international level.
Corruption is definitely a weakness. Indonesia has enacted new laws to assist in
combating corruption. Indonesia has a
strong military but must be careful to not use its military capability in a
self-destructive manner, such as to quiet dissidents. The concept of deliberation and consensus can
go a long way when attempting to settle disputes and complex issues.
One of Indonesia’s greatest opportunities relates to its location
in Asia and its proximity to India and China.
India and China have been two of the fastest growing economies in the
world. Strategic partnerships with China
and India can only strengthen its position in Asia. Strategic partnerships with the US and the EU
can only strengthen its position on a global scale. Our world is changing. The old colonial and chauvinistic ways of
thinking are gradually disappearing.
Opportunities for developing interdependent relationships that are not
exploitive will abound if approached with an attitude of openness.
The greatest threats for Indonesia are likely to come from
within. An atmosphere transparency and
openness must be created by the government.
Another internal threat relates to making promises and not
delivering. The people of Indonesia
expect their leaders to develop, promote and implement processes that result in
real economic development that can be experienced by the majority of Indonesians. If the government fails to deliver the people
will once again demand a change.
* * * * * * * * * * * *
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