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Indonesia has become one of the most internationally “compelling” entities nowadays. Its economic development, large and mobile society, political reforms as well as the impressive combination of Islam and democracy attract world’s attention. Indonesia has every right to be regarded as one of the regional powers, or even the emerging leader in Southeast Asia. The breakthrough came along with the overthrow of president Suharto in 1998. The new authorities started to implement variety of reforms in the entire country that are still in process. The transposition of Indonesia’s role and image in the world created also a need for adopting a new, completely fresh approach towards its foreign policy. This paper focuses on foreign policy of Indonesia since 1998 till current days. It examines its main goals and relations with its neighbors, world’s great powers, as well as the involvement of Indonesia within the international organizations. Indonesia is without a doubt primus inter pares in the Association of Southeast Asia Nations and in the Asia-Pacific Economic Cooperation. Indonesia recognizes its participation within ASEAN as the cornerstone of national foreign policy. Since ASEAN’s establishment in 1967, Indonesia has lead that organization from behind. Nowadays, Indonesia tries to overhaul the whole ASEAN system by pushing for the promotion of democracy and human rights as one of the key agendas for the organization. Within last few years, there was also a deeper Indonesian involvement in G20. Indonesian experience of financial crisis in late 90s and years of economic recession during New Order helps to understand the challenges in today’s world. Sharing that experience within G20, Indonesia initiated different action related to safeguard the international financial institutions and world banking system. The last years brought also a great change in the foreign policy of Indonesia in terms of its relations with the People’s Republic of China and the United States of America. China is no longer regarded as a threat for Indonesia’s elites, but as a prospective economic partner. The diplomatic relations with the United States have been strengthened in recent years as well. Last but not least, the paper focuses on the relations of Indonesia with its closest neighbors. After years of diplomatic discourse and antagonism with the government in Kula Lumpur, Singapore, or Canberra, Indonesia initiates a new phase of cooperation. The years of Konfrontasi are over and Indonesian government opened a new chapter and enjoys the cooperation with Australia, Malaysia, Singapore, and Thailand. Indonesia may be, without a doubt, considered as both regional and middle power, as well as the emerging economic power.
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