Book Description

Indonesia is Japan's fifth largest trading partner, and the location of $2 billion of Japanese capital. It controls, together with Malaysia, the Strait of Malacca, and, alone, sea passages between Australia and Japan. Indonesia is also important for Japan in maintaining a suitable balance of power in Asia and a satisfactory world economic order. Japan is Indonesia's largest customer, buying around half of all exports, and from 55 to 73 percent of all exported petroleum. It is also Indonesia's major supplier. For the last several years Japan has been Indonesia's principal donor of economic assistance. These economic interactions undoubtedly provide Japan with valuable assets in dealing with Indonesia. But there are restraints on Japan's potential to affect Indonesian behavior, particularly with respect to achieving stability in Southeast Asia under regimes friendly to Japan. The United States must concern itself with Indonesia if it wants the benefits of an alliance with a strong Japan, even if direct US interests by themselves do not appear to justify too much attention. The deployment of military forces probably would not be desirable. (Author).