The Ebb and Flow of RI-US Relations: From the VOC Era, Obama, to the Trade War

The relationship between Indonesia and the United States was established long before the Republic of Indonesia’s independence. Although the US only formally recognised Indonesian sovereignty in 1949 following the Round Table Conference, America subsequently developed into one of Indonesia’s strategic partners in various fields, ranging from trade and investment to education and defence. Over more than seven decades, the relationship has experienced ups and downs in line with changing global political dynamics, yet it remains one of the crucial axes in Indonesia’s bilateral relations with major powers. In recent months, Indonesia-US relations have entered a new chapter. The two countries signed a series of economic agreements worth tens of billions of dollars, covering trade, investment, critical minerals, supply chain strengthening, and technology. The relationship, which today is dominated by issues of semiconductors, electric vehicles, and artificial intelligence, has actually traversed a journey of more than seven decades. What has changed is not only the form of cooperation but also the reasons why Jakarta and Washington need each other. At one time, the interest was the recognition of Indonesia’s sovereignty. In another period, it shifted to Cold War rivalry. Now, the focus is on the contest for global supply chains and future technologies. Relations Began with Trade Long before Indonesia’s independence, the United States already had trade interests in the archipelago. On 24 November 1801, the US government opened its first consular office in Batavia to serve the increasingly busy trade activities in the Southeast Asian region. Official state-to-state relations only began after Indonesia gained recognition of its sovereignty. The United States opened its Embassy in Jakarta on 28 December 1949 and appointed Horace Merle Cochran as the first ambassador. A few months later, on 20 February 1950, Indonesia sent Ali Sastroamidjojo as its first ambassador to Washington. In the first few decades, the foundation of the relationship between the two countries was built through diplomatic recognition and the establishment of official communication channels. From this point, cooperation in the political, economic, defence, and educational fields began to develop. Indonesia Enters the Global Rivalry Stage The Indonesia-US relationship began to enter a more complex phase when the world was divided by the Cold War. After supporting the recognition of Indonesian sovereignty in the late 1940s, Washington saw Jakarta not merely as a newly independent country, but as an important part of the influence rivalry with the Soviet Union. Indonesia’s position was different. The government chose a free and active foreign policy, hosted the Asia-Africa Conference in 1955, and then co-founded the Non-Aligned Movement. Amid the rivalry between the two blocs, Jakarta sought to maintain distance from both the West and the East. The relationship briefly warmed during the era of President John F. Kennedy. The United States supported the 1962 New York Agreement, which paved the way for the transfer of administration of West Papua from the Netherlands to the United Nations Temporary Executive Authority (UNTEA), before it was finally handed over to Indonesia. However, the relationship was tested again when President Sukarno strengthened ties with the Soviet Union and the People’s Republic of China, alongside the policy of Confrontation with Malaysia. For Washington, keeping Indonesia from falling completely into the communist orbit became a strategic interest far greater than bilateral relations alone. After the Cold War, Priorities Shifted The end of the Cold War changed the direction of the relationship. Ideological rivalry was no longer the main issue. Instead, attention began to shift to democracy, human rights, reform, and regional stability. This change was evident after the 1999 referendum in Timor Timur. The United States imposed a military embargo on Indonesia in response to the post-referendum situation. Defence cooperation that had been built previously practically came to a halt. The embargo was only lifted in 2005. Since then, defence relations have been restored gradually through security dialogues, joint military exercises, personnel capacity building, and cooperation in addressing transnational threats. If during the Cold War the relationship was largely determined by geopolitical calculations, entering the 21st century the measures of success became more diverse, ranging from governance to regional security cooperation. Bilateral Relations Continue to Level Up The normalisation of relations opened a new chapter. Over the past one and a half decades, Indonesia and the United States have upgraded their partnership status several times. Each upgrade did not merely change the name but also expanded the scope of cooperation. Key milestones in RI-US relations include: 2010 - Comprehensive Partnership: Expanding cooperation in education, trade, energy, the environment, science and technology, and people-to-people relations. 2015 - Strategic Partnership: Agreed upon during President Joko Widodo’s visit to Washington DC. The focus of cooperation was expanded to include investment, defence, maritime affairs, and economic growth. On the same occasion, business deals worth more than US$22 billion were announced. 2023 - Comprehensive Strategic Partnership: Announced by President Joko Widodo and President Joe Biden. The partnership covers the digital economy, energy transition, critical minerals, maritime security, supply chain strengthening, and cooperation in the Indo-Pacific region.