Indonesia and Taiwan is located on different geographic features, but they shared the similar historic background of reigning by Holland and Japan respectively. When Holland controlled Taiwan, its troops were dispatched from Indonesia and put forward trade relations with Taiwan. Indonesia got independence status in 1950, but she didn’t establish diplomatic relation with ROC (Taiwan). Bases on mutual economic interest, President Suharto endeavored to close economic relations with Taiwan. Indonesia becomes the first choice of Taiwan to invest in South East Asia, being the biggest invest state, which was superseded by Vietnam in 2000. However, when Indonesia entered into democratic era, Taiwan maintains very close economic relations, investment and agricultural cooperation with it.
In order to understand the relations between Indonesia and Taiwan, I initiate to discuss historical background of Indonesia and Taiwan, and then the substantial political relations. Especially both two countries have no diplomatic relations, how did they move to establish substantial relations? Are the economic, invest, agricultural relations influenced by what kind of factors? All these economic and technologic cooperations definitely contributed to maintenance of relations of both countries.
In my research I use the archives of Ministry of Foreign Affairs, ROC, and refer also many books, articles of scholars, essays on newspaper and website. My effort is going to analyze the reasons of closing economic relations between Indonesia and Taiwan. It is a rare case for such non-diplomatic state. No matter what the political change of Indonesia, suffering from economic crisis, Indonesia always keeps close economic relations with Taiwan. The major factors would be there is no interest conflict of both sides, and Taiwan generously provides investment and agricultural technology to Indonesia.