Introduction: Heightened Expectations

On 16th August 2004, Indonesian President Megawati Sukarnoputri gave the annual presidential state address to Indonesia's Dewan Perwakilan Rakyat, its House of Representatives. As it was, this turned out to be her final appearance in that role since five weeks later she was decisively defeated in the run-off presidential election by Susilo Bambang Yudhoyono. In her speech documenting the achievements of her stewardship of the republic, little reference was made to foreign policy. This was understandable given the critical political and economic domestic crises facing the Indonesian leadership. The event that was singled out in her brief allusion to foreign affairs was telling, however, signalling as it did the assertion of a re-emergent regional leadership role for Indonesia. The touchstone for the claim was the 9th ASEAN Summit held in Bali in October 2003, where she said,

This was not just posturing by Megawati. More neutral Indonesia-watchers picked up the theme. Anthony Smith wrote: “The Bali Summit witnessed Indonesia's re-emergence to the role of group leader, or at least demonstrated Jakarta's desire to begin to steer the direction of the grouping again.”

Megawati's celebration of Indonesia's important role in formulating the heralded Bali Concord II (ASEAN Concord II) evoked memories of the 1976 Bali Summit hosted by President Suharto. That summit was the collective response of the five non-communist states of ASEAN to the change in the regional geostrategic environment following the 1975 communist victories in Vietnam, Cambodia, and Laos. At this first ASEAN Summit, the leaders of the ASEAN-five proclaimed the politically path-breaking “Declaration of ASEAN Concord”. This reflected then, as the ASEAN Concord II reflects now, the felt urgent need for greater political and economic cooperation among the ASEAN members faced by common external challenges.