U.S. Relationship With Indonesia

U.S.-Indonesia relations have taken on increasing importance. Indonesia is the world’s third largest democracy, has the largest Muslim-majority population, is the tenth-largest economy in the world by purchasing power, and possesses the world’s greatest marine biodiversity and its second greatest terrestrial biodiversity. Indonesia also borders the South China Sea, which has the world’s busiest sea lanes — over $5 trillion in cargo and as much as 50 percent of the world’s oil tankers pass through the South China Sea every year. The U.S. was one of the first countries to establish diplomatic relations with Indonesia in 1949, following its independence from the Netherlands. Indonesia’s democratization and reform process since 1998 has increased its stability and security, and resulted in strengthened U.S.-Indonesia relations. The U.S. and Indonesia initiated in 2010 a Comprehensive Partnership to foster consistent high-level engagement on democracy and civil society, education, security, climate, maritime, energy, and trade issues, among others. Based on its success, in 2015 the two countries upgraded the relationship to the U.S.-Indonesia Strategic Partnership, extending cooperation to issues of regional and global significance.