24 January 2025, NIICE Commentary 9873
Anoushka Kashyap

Indonesia plays a pivotal role in the Indo-Pacific region due to its geography as it lies at the centre of the Indian and Pacific Oceans. It is the largest Southeast Asian country and a prominent member of ASEAN (Association of the Southeast Asian Nations). The country follows a multilateralism’ approach to propagate peace and fulfil its strategic visions in the Indo-Pacific region. It is a growing regional power and has been regarded as the third-largest democracy in the world.

To understand Indonesia’s role in the Indo-Pacific region, it is imperative to understand the meaning and evolution of the term ‘Indo-Pacific’. The term has been regarded by many Asian scholars as a new emerging label for the region, but it has been in use for over a decade. It became popular recently because it has been used in official documents and white papers. The name implies the conjunction of the two oceansIndian and Pacific.

The Indo-Pacific is an important maritime trading route because of the two oceans and a place of a face-off between the USA and China. The region makes Indonesia a significant player as it lies at the centre of the two oceans and plays a vital role in many sectors like trading. Indonesia is an archipelago surrounded by islands like Natuna, Banda, Kai and The Greater Sunda islands.

The geographical location of Indonesia can affect the country in two ways: Either it can get many investments and interests in its national strategies. It has its own goals and dynamics for the Indo-Pacific like the 2019 ASEAN Outlook Towards the Indo-Pacific.’ After independence, Indonesia adopted an ‘inward-looking foreign policy’ focusing largely on its domestic politics and The 1957 Djuanda Declaration’ made it an archipelagic state (giving it sovereignty in the water).

Indonesia a founding member of ASEAN has taken the lead role under the union in having an ‘outlook’ towards the Indo-Pacific region. Former President Joko Widodo has a vision of making Indonesia a “Global Maritime Fulcrum” (GMF). His vision is exemplary as he wants to take advantage of the geographic location of Indonesia and the two oceans. Indonesia is focusing on the maritime aspect and building it under ASEAN and the association in turn has adopted the archipelago’s ASEAN Outlook Towards the ‘Indo-Pacific Strategy’. The main issue discussed in the meetings is regarding the regional hegemon China and due to Indonesia to some extent, the organisation has started to incorporate ideas of Indo-Pacific like free and open Indo-Pacific.” (Shinzo Abe)

Indonesia has influenced the organisation (ASEAN) in thinking about the Indo-Pacific. Indonesia and ASEAN have seen a joint vision to portray a hedging behaviour as they both ally with the USA and China. It has a vision of utilising its location which is seen in Jokowi’s idea of making Indonesia a GMF. It uses the term tanah air” meaning “land-water” implying the island’s water and islands that make up Indonesia.

Indonesia’s outlook and dynamics have changed over the past years, especially under the Jokowi Government. He became the President of Indonesia in the year of 2014 for a term of five years. The government of Indonesia allows the Presidential electoral ship valid for two terms and each term is for five years. Jokowi’s second Presidential term ended on February 14, 2024, since Prabowo Subianto won the elections and will become President of Indonesia in October and until then Widodo will continue to handle the Presidential office.

Joko Widodo popularly known as “Jokowi” has focused greatly on the ‘maritime outlook’ of Indonesia in his tenure up until now, especially during his current term. He has managed to create an atmosphere of vision into reality by developing and improving infrastructure and accelerating economic growth. Indonesia has followed the ‘multilateralism approach’, though recently it has focused more on recovering the health sector due to the problems faced during the COVID times and on the backlash of economy of the country rather than focusing on its core approach.

However, it is visible that during the pandemic Indonesia had adopted the strategy of focusing more on multilateralism in order to balance the face-off between the USA and China in the Indo-Pacific. Author Natalie Sambhi says that “Indonesia’s centrality in the Indo-Pacific, however, can be a double-edged sword”. On one hand, it might attract more attention and support from other nations but on the other hand, it will say that the country will be expected and be burdened with greater responsibility due to its prime location in the Indo-Pacific. Indonesia’s vision of the Indo-Pacific follows initiatives like the “2019 ASEAN Outlook on the Indo-Pacific.”

The 1957 Djuanda Declaration’ founded baselines and borders for Indonesia which was very crucial to mark its sovereignty in the Indo-Pacific waters and the declaration was later adopted in the UNCLOS (United Nations Convention on Laws of the Sea). Here comes the interesting part, that the declaration was “domestically oriented” as in the post-colonial times most of Indonesia’s policies were ‘inward-looking’ and were focused on inland activities and not on maritime activities.

The idea of GFM or ‘Global Maritime Fulcrum’ for Indonesia was initiated by Jokowi in his first term. GFM came into being to restore the maritime policies of Indonesia by promoting defence, protection of fisheries and maritime tourism to name a few. Joko Widodo during his tenure played a key role in trying his best to boost the maritime sector by appointing Susi Pudjiastuti as ‘Minister of Marine Affairs and Fisheries’ and his role was watching over the transportation of goods and services via Sea and Air.

Widodo is known as Bapak Infrastructure meaning “Mr Infrastructure”. Indonesia’s economic policies have been influenced by the outside world, especially under Widodo’s tenure. He followed the policy of a “free and active” Indo-Pacific and foreign policy. He tried to maintain a good balance between the USA and China during his tenure. China has initiated many developmental projects like the Belt and Road Initiative (BRI) which also includes the Jakarta Bandung High Speed Railway (HSR). Widodo managed to strengthen ties with USA and Japan under the Indo-Pacific Strategy and Indonesia signed IPEF (Indo-Pacific Economic Framework) wherein Indonesia focused on accessing gains from the US markets and its minerals. Widodo visited the USA in November 2023 and both countries signed a ‘Comprehensive Strategic Partnership’.

Joko Widodo’s second presidential term started on a more intense note in the year of 2019 due to the USA-China rivalry, new players like the United Kingdom and France entered the region along with the challenge posed by the COVID-19 pandemic. He faced his biggest challenges in his second term. He announced new economic plans as soon as he entered his second term. The pandemic has derailed many of his plans as he had promised during his first presidential tenure in 2014 that he would boost the economy of the country through his campaigns to around 7% but it remained barely around 5% according to CNA Asia News. The Covid pandemic also limited Indonesia’s outlook and position in the Indo-Pacific and the country is grappling with providing security measures for the Indo-Pacific.

Anoushka Kashyap is a Research Intern at NIICE. She has completed her Master’s Graduate in International Affairs from OP. Jindal Global University with interests in regions of Southeast Asia, East Asia and the Indo-Pacific.