Another strategic aspect is that Indonesia sits astride the Pacific and Indian oceans in some of the world's most heavily trafficked sea lanes. Roughly half of the world's commerce, by value, flows through the straits of Indonesia, Ott said. In his opinion, he said, a crisis in Indonesia would affect other strategic relationships. The principal arena in which this would be played out is Taiwan and Southeast Asia. China sees Southeast Asia as an opportunity to flex its muscles, Ott said.
Regional stability calls for a strong, unified Indonesia.
Indonesia has been going through an economic crisis since 1997. Ott said there is some sense the country is coming out of the crisis. Since the 1960s and the army's overthrow of President Sukarno, President Suharto ruled the country. Suharto was forced from office in 1998 and replaced by Bacharuddin Jusuf Habibie. Ott called East Timor the one problem in the U.S.-Indonesian relationship.