INDONESIA

Created: 3/9/1978

OCR scan of the original document, errors are possible

JIMMY CARTER# NLC OP

CENTRAL INTELLIGENCE8

Indonesia: Indonesia under President Suharto has been stable domestically and moderate in international affairs. Its policies and style contrast markedly with those of the late President Sukarno whose flamboyant leadership and flirtation with radical communist states led to foreignand economic stagnation. The present regime which assumed power6 is dominated by senior army officers and this is unlikely to change for the foreseeable future, despite periodic opposition from urban intellectuals and activist Muslims. Suharto's continued tenure would only be threatened if significant elements within the senior military turned against him but despite the occasional unhappiness of particular officers over specific policies or situations there is no evidence of general dissatisfaction with the Suharto leadership among those military men who count.

Indonesiamall but expanding modern economiccountry remains predominantly agricultural with two-thirds

the labor force absorbed in this relatively stagnant sector

the economy. Despite large investments of foreign capital

a reputationountry with vast natural resources,

per capita income remains among the lowest in

Asia. Moreover Indonesia can no longer rely on the oilhas financed much of its development thus far.

0

foreign policy is dominated by the desire to

cooperation and stability among the five-member

for Southeast Asian Nations and to prevent great

power competition in the area. Indonesia has been aforce in the nonaligned movement and in third world

in general. It is deeply suspicious of China because

its presumed complicity in an abortive coup attempt in

Lately the radical anti-comnunist stance has moderated

somewhat but Indonesia has yet to lift the suspension of

diplomatic relations with Peking; it also keeps Moscow at arms

length.

Indonesia has depended heavily on the US for military and economic aid but this has lessened in recent years. The Indonesians are likely to seek reassurance that the US intends to continue toole in Asia. They will question the pressure placed on them over human rights and seek increased economic and military aid. They are also likely to bring up North/South issues in their self-professed roleeader of the moderate camp among the underdeveloped countries.

Original document.

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