This chapter examines Indonesia’s foreign policy after the Cold War. Although Indonesia officially has claimed a ‘free and independent’ foreign policy since its independence, as a middle Power it faces a political dilemma in designing its foreign policy. On one hand, Indonesia intends to play an important role in international affairs if opportunity permits. On the other, its middle Power status constrains its international ambitions since it lives amongst Great Powers like the United States, China, and Japan. After the Cold War, a dramatic change took place in the international environment because of the demise of the Soviet Union, the sustained ‘unipolar moment’, and the rise of China.1 Although Indonesia lost the economic and security privileges it enjoyed in the Western camp during the Cold War, the changing international environment offered new opportunities to play a more important role on the world stage.