Foreign Policy of Indonesia

The principles underlying Indonesia’s foreign policy were expounded for the first time by Mohammad
Hatta, Indonesia's first vice president, on September 2, 1948 at Yogyakarta in Central Java. The main
idea of his speech was the golden mean in international relations, which later became known as
“mendayung antara dua karang” (“rowing between two reefs”).

The primary objectives of Indonesia’s foreign policy are: To support national development with priority
on economic development; To preserve internal and regional stability conducive to national
development; To protect the territorial integrity of Indonesia and safeguard the peoples place of abode.

Over the past year, Indonesia’s foreign policy objectives have not only become more visible on various
international platforms, but also strengthened the country’s regional leadership. Under President Joko
“Jokowi” Widodo, the country showed its commitment to peace, especially by addressing the
humanitarian crisis in Myanmar and in its steadfast support for Palestine after the United States’
controversial decision to recognize Jerusalem as the capital of Israel.

At the beginning of 2017, Foreign Minister Retno Marsudi said Indonesia aims to intensify trade and
investment cooperation, particularly with African and South American countries. Efforts to increase
economic cooperation with non-traditional markets also include negotiating economic partnership
agreements with Chile, which Indonesian businesspeople consider a potential jumping-off point for their
products in the South American market. Indonesia and Chile signed a comprehensive economic
partnership agreement. Furthermore, Indonesia is currently involved in negotiations on comprehensive
economic partnership agreements with several countries, including the European Union and Australia,
to achieve its economic ambitions. Indonesia is on track to continue increasing its role in economic
diplomacy, while also capitalizing on the opportunities offered by the emerging sector.

As Indonesia aims to become a leading maritime power, more coordinated efforts have been
undertaken to speed up development and face possible challenges in the maritime sector.

Indonesia has spearheaded an initiative to promote and foster regional and international cooperation
for peace and democracy through the Bali Democracy Forum (BDF).

When the European Parliament adopted a resolution on palm oil and deforestation last April, Indonesia
quickly criticized the decision and said it discriminated against local palm oil production methods and
disregarded the Southeast Asian country’s efforts to introduce sustainable practices.

During the 50th anniversary of the Association of Southeast Asian Nations (Asean), Indonesia emerged
as the regional bloc’s natural leader, reinforcing the organization’s relevance and calling for more unity
among member states.

Indonesia also played a role in combating terrorism and transnational crime.