http://www.theage.com.au/world/china-us-eye-regions-plum-prize-indonesia-20101110-17nn1.html

China, US eye region's plum prize, Indonesia 
Norimitsu Onishi, Jakarta 
November 11, 2010 
LESS than a day before President Barack Obama touched down in Jakarta, a 
high-level Chinese delegation wrapped up a three-day official visit to 
Indonesia by announcing that Beijing would invest $US6.6 billion ($A6.57 
billion) in infrastructure improvements.

The emphasis of the announcement on roads, bridges and canals - not to mention 
its timing - laid down a not-so-subtle challenge to Mr Obama: show your 
Indonesian hosts the money.

As the US and China step up their rivalry in south-east Asia, Indonesia - 
officially hewing to a long-standing foreign policy of nonalignment but leaning 
closer to Washington - represents by far the biggest prize in a region caught 
uneasily between China's rise and America's renewed engagement.

At a news conference with his counterpart, President Susilo Bambang Yudhoyono, 
Mr Obama said the US was not interested in ''containing'' China. But a day 
after endorsing India's pursuit of a permanent seat on the UN Security Council 
in a move widely seen as an attempt to check China's growing influence, Mr 
Obama poured on the charm.

US and Chinese officials have been pursuing all 10 countries in the Association 
of South-East Asian Nations, but none more aggressively than Indonesia, the 
world's fourth most populous nation, now led by a democratically elected 
government impatient to raise the country's international profile.

The US will have to contend with challenges, old and new. Despite Indonesia's 
enduring suspicion of China, Beijing has been making great inroads, 
economically, diplomatically and militarily. And a newly confident Indonesia 
has been reasserting its independent foreign policy, promoting what it now 
calls a ''dynamic equilibrium'' for the region. 

NEW YORK TIMES


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