CRS Report for Congress
Prepared for Members and Committees of Congress
Indonesia: Domestic Politics, StrategicDynamics, and U.S. Interests
Bruce Vaughn
Specialist in Asian AffairsJanuary 31, 2011
Congressional Research Service
7-5700www.crs.govRL32394
Indonesia: Domestic Politics, Strategic Dynamics, and U.S. InterestsCongressional Research Service
Summary
With a population of 240 million, Indonesia is the largest country in Southeast Asia and the mostpopulous Muslim-majority nation in the world. Its size, its emerging democracy and economicvibrancy, and its strategic position across critical sea lanes linking the Middle East with East Asiahave led many to consider it an emerging middle-tier power. The U.S. maintains close relationswith Indonesia, with considerable security, economic, and trade ties, although human rightsconcerns about the Indonesian armed forces have long been a thorn in the relationship.In the 12 years since a catastrophic economic crisis led to the fall of longtime President Suharto,Indonesia has undergone a remarkable transformation. It has held two successful directPresidential elections, both of which were considered largely free and fair, and conducts dozensof actively contested provincial and local elections each year. Its economy regularly posts growthof better than 6% annually, although poverty remains considerable and corruption widespread.Discussion of Indonesia has shifted from speculation about its possible breakup due to separatistsentiments in places such as Aceh, the Malukus, West Papua, and the now independent state of Timor Leste to admiration of its democratic transformation, its relatively strong performance inthe recent global economic crisis, its cooperation in efforts to combat terrorism, and its growingrole in regional diplomatic institutions, international efforts to combat climate change, and itsmembership in the G-20.In recent years, U.S. policy towards Indonesia has focused on cementing ties with a geopoliticallyimportant state that can play an active role in regional diplomatic institutions, and encouragingIndonesia to combat terrorism and effectively counter the rise of violent Islamic militancy. TheUnited States has also sought to promote democracy, the rule of law and human rights, and tofurther American trade and investment interests in Indonesia.The election of President Barack Obama, who spent part of his childhood in Indonesia, did muchto spur expectations in Indonesia that the U.S.-Indonesia bilateral relationship would beenhanced. President Obama’s visit to Indonesia in November 2010, with the signing of aComprehensive Partnership Agreement with Indonesian President Susilo Bambang Yudhoyono(SBY), did much to meet these expectations. The agreement covers a range of issues includingtrade and investment, food security, science and technology, educational exchanges, and militarycooperation.Congressional concerns have included oversight of the Obama Administration’s policies towardsIndonesia, including the Comprehensive Partnership, Indonesia’s role in regional diplomacy, therestarting of comprehensive military-military relations, and policies to encourage human rightsperformance, particularly in restive West Papua.
Indonesia: Domestic Politics, Strategic Dynamics, and U.S. InterestsCongressional Research Service
Contents
Overview....................................................................................................................................1
Issues for Congress.....................................................................................................................1
President Obama’s Visit to Indonesia...........................................................................................3
Obama’s Return....................................................................................................................3
The Comprehensive Partnership Agreement..........................................................................4
The Economic Dimension.....................................................................................................5
The Strategic Dimension.......................................................................................................5
Regional Architectures..........................................................................................................6
Outreach to the Muslim World ..............................................................................................6
Historical Background ................................................................................................................6
Political Dynamics......................................................................................................................8
Parliamentary Elections.........................................................................................................8
Presidential Elections..........................................................................................................11
The Role of the Military............................................................................................................12
Autonomous and Secessionist Movements ................................................................................13
Timor-Leste........................................................................................................................14
Aceh...................................................................................................................................15
West Papua.........................................................................................................................16
Current Impasse in West Papua .....................................................................................17
Background to the Present Conflict...............................................................................18
The Government of Indonesia and West Papua..............................................................19
Radical Islam and Inter-Communal Strife..................................................................................20
The Struggle Against Radical Islamist Extremists................................................................22
The Economy............................................................................................................................24
The Environment ......................................................................................................................25
Human Rights and Religious Freedom......................................................................................27
The Question of Genocide in Papua.....................................................................................28
Religious Freedom..............................................................................................................30
External Relations.....................................................................................................................31
Regional Dynamics.............................................................................................................32
Australia.............................................................................................................................32
China..................................................................................................................................32
Malaysia.............................................................................................................................33
United States-Indonesian Relations ...........................................................................................33
U.S. Geopolitical and Strategic Interests..............................................................................33
U.S. Assistance to Indonesia................................................................................................34
Security Assistance .......................................................................................................35
Observations.............................................................................................................................36
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