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Both are democratic countries and each nation reciprocally recognizes the strategic importance of their counterpart. Washington threatened to cut off Marshall plan aid.Indonesian views of the United States have declined significantly during the Trump Administration, with 43% of Indonesians viewing the U. positively in 2018 (a near 20 point drop from the end of Barack Obama's term) compared to 42% who viewed the U. Indonesia finally gained full independence from the Netherlands in 1949.With the end of the Cold War in 1989 and the resolution of the crisis in East Timor in 2000, relations between Indonesia and the United States have been untroubled. Rapprochement was made successful by Indonesia's transition from autocracy to democracy with free elections, and its effective counter-terrorism strategies. Obama's administration policy celebrates shared democratic values and interests, as well as the but also by recognition that Indonesia is an emerging power that will play an increasingly influential role in world affairs.

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East Timor took two decades to settle down, and finally, after international intervention in the 1999 East Timorese crisis East Timor became an independent nation in 2002.

Recent research into newly opened documents indicate that anti-Communism was not the main reason Western support for Indonesia's takeover of East Timor.

policy since the 1940s has been to support Indonesia and help it avoid communism. Indonesia was one of the largest countries in Asia that was pro-United States.

Indonesian nationalized more than a thousand Dutch companies, and nine out of 10 of the Dutch residents returned to the Netherlands.

The Netherlands kept possession of West New Guinea.

War threatened, but the United States under President John F. Regardless of the wishes of the local inhabitants, West New Guinea became part of Indonesia.

After Kennedy's death, President Lyndon Johnson escalated the war in Vietnam, which greatly heightened tensions with Indonesia in 1964–65. He denounced American imperialism, and inspired anti-American demonstrations. Unexpectedly, and without American help, the Indonesian army overthrew Sukarno and ended his anti-American regime.

Many thousands of Communists were killed across Indonesia.

Analysts in Washington and in NATO concluded that East Timor was too small, and too unstable to survive on its own.

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