 Indonesia
 has reason to be confident. Less than two decades after the 1997-1998 
Asian financial crisis ravaged the economy and provoked a social and 
political upheaval that ended President Suharto’s three-decade-long 
rule, Indonesia is a member of the G-20 and boasts the world’s 15th 
highest GDP.
Indonesia
 has reason to be confident. Less than two decades after the 1997-1998 
Asian financial crisis ravaged the economy and provoked a social and 
political upheaval that ended President Suharto’s three-decade-long 
rule, Indonesia is a member of the G-20 and boasts the world’s 15th 
highest GDP.
Moreover,
 Indonesia’s mainly Muslim population is predominantly moderate, and the
 country has been able to overcome most of its internal security 
problems, including the secessionist movement in Aceh and various 
large-scale communal conflicts. East Timor’s independence in 2002 ended 
years of violent struggle.
But
 Indonesia still faces domestic challenges. For example, the country’s 
reputation as a model of Muslim moderation has recently been undermined 
by intolerance and violence against religious minorities. And, after 
eight years under President Susilo Bambang Yudhoyono, the country faces 
elections next year.
Nevertheless,
 Indonesian leaders’ primary concerns – and ambitions – lie in the 
country’s foreign relations. In particular, China’s territorial claims 
in the South China Sea have divided ASEAN member countries, forcing 
Indonesia to perform a difficult balancing act as it seeks to maintain 
stable relations with China while addressing the rift within the region.
Since
 achieving independence after World War II, Indonesia has pursued a 
“free and active” foreign policy, preferring to protect its own 
interests rather than align itself with more powerful countries. 
Indonesia’s activist approach, whereby it assumes a leadership role both
 in the region and globally, has been driven simultaneously by supply 
(domestic popular sentiment) and demand (the country’s international 
partners).
Two
 distinct foreign-policy legacies inform the Indonesian public’s 
expectations and the government’s choices. Sukarno, Indonesia’s first 
president after independence, adopted a confrontational stance, making 
Indonesia a leader of the Non-Aligned Movement. But, while this 
“lighthouse” foreign-policy approach increased Indonesia’s international
 clout, it led to encirclement by hostile Western powers – and to 
bankruptcy.
Sukarno’s
 successor, Suharto, embraced a more pragmatic and low-profile foreign 
policy aimed at creating an environment in which Indonesia could develop
 economically. This included working toward regional stability in 
Southeast Asia, as well as nurturing relations with the United States, 
Japan, and key European countries, in order to gain access to external 
markets, foreign investment, and technical assistance. But, while 
Suharto’s approach supported economic progress, critics charged that it 
betrayed the spirit of the 1945 constitution, which calls for Indonesia 
to play an active role in fostering world peace.
Seeking
 to reconcile often-contradictory demands for idealism and pragmatism, 
Indonesia has once again adopted a more activist approach to foreign 
policy. But staying on course has not been easy. Although some analysts 
argue that Indonesia has outgrown ASEAN and should chart an independent 
course, the government has remained firm: ASEAN will remain the 
cornerstone of its foreign policy.
That
 stance is driven less by a sense of insecurity than by confidence in 
“ASEAN centrality” – that is, its member states’ ability to shape the 
regional order and realize a common destiny on their own terms, without 
foreign meddling. Viewing ASEAN as indispensable for managing relations 
with major powers, Indonesian policymakers believe that the bloc should 
be ambitious about spreading its code of conduct, and that it should 
drive initiatives for creating a regional architecture in East Asia.
Given
 this, Indonesia’s opposition to the idea of an East Asian community – 
comprising ASEAN, China, Japan, and South Korea – was unsurprising. 
Instead, it backed the more inclusive East Asia Summit, which brings 
together leaders from ASEAN and its eight key partners – China, the 
United States, Japan, India, Russia, Australia, South Korea, and New 
Zealand. Indonesia hopes to create a looser and more pluralistic 
grouping that would not be dominated by one or more powers, thereby 
allowing ASEAN to continue to play the central role of convener.
By
 contrast, Indonesia’s role in the G-20 remains limited, as does its 
potential to act as a representative for developing countries. But, 
unlike the more confrontational BRICS (Brazil, Russia, India, China, and
 South Africa), Indonesia hopes to foster cooperation among developed 
and developing countries. It has also sought a leadership role on such 
strategic global issues as climate change and inter-faith dialogue.
Furthermore,
 Indonesia has worked to promote democracy. For example, since 2008, it 
has hosted the annual Bali Democracy Forum, at which representatives of 
established and aspiring democracies share their experiences. Such 
initiatives underscore the global attention focused on Indonesia, a 
Muslim-majority democracy, in the wake of the Arab Spring. Indeed, 
various Arab countries, notably Egypt and Tunisia, are seeking 
Indonesian leaders’ advice on balancing Islam and politics.
Such
 efforts have not always been popular with Indonesia’s ASEAN partners, 
owing to concerns that they breach ASEAN’s rule of non-interference in 
other countries’ internal affairs. But they have contributed to progress
 in important areas. For example, Indonesian officials have encouraged 
reform in Myanmar, helped to bring about an end to the border conflict 
between Thailand and Cambodia, and pushed for democracy and human rights
 to be enshrined in an ASEAN political and security community.
Ultimately,
 however, Indonesia’s clout stems from its soft power. So, while 
Indonesians may court the global spotlight, their chief concerns should 
be fostering strong and stable economic growth, stemming domestic 
religious intolerance, and preserving ASEAN unity in the face of China’s
 increasingly assertive policy in the region. Indonesia should not allow
 its newfound confidence to become foreign-policy arrogance.
 Dewi Fortuna Anwar is Deputy Chair for Social Sciences and Humanities at
 the Indonesian Institute of Sciences and Chairman of the Institute for 
Democracy and Human Rights at the Habibie Center.
