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Jakarta’s Juggling Act: Balancing China and America in the Asia-Pacific

Jessica Brown | 02 February 2011

Indonesia is engaged in a delicate balancing act between China and the United States, argues a new report released by The Centre for Independent Studies today.

In Jakarta’s Juggling Act: Balancing China and America in the Asia-Pacific, CIS Research Fellow Jessica Brown says Indonesia needs US support to protect its key maritime interests but does not wish to upset its lucrative economic relationship with China.

 

‘Like Australia, Indonesia sees both opportunities and threats in the rise of China,’ says Brown.

 

‘Australia and Indonesia also share many of the same foreign policy concerns. Rich in natural resources, Indonesia is keen for trade and investment with China to increase. But it is wary of a future where China may be able to dominate the region.’

 

President Obama’s recent visit to Indonesia shows that the United States now sees the country as a vital strategic partner in Southeast Asia.

 

Indonesia has built upon its ‘middle power’ status and has reclaimed its de facto leadership role of the Association of Southeast Asian Nations (ASEAN), joined the G20, and has been actively developing relationships with regional powers such as Australia and India.

At the same time as Indonesia’s fortunes are changing, the geopolitical dynamics of the region are shifting as well. A growing Indonesia will be integral to managing security concerns in South-East Asia, says Brown.

‘Ultimately Indonesia does not want to pick sides and will continue to juggle its relationships with China and the US as long as it serves its interests to do so.’

‘Indonesia will not allow itself to be manipulated by either China or the US to further their interests.’

 

‘As Indonesia continues to grow in strategic and economic importance, its relationships with two of the world’s largest powers will be important for the whole region, including Australia.’

 


Jessica Brown is a Research Fellow at The Centre for Independent Studies. She is available for comment.