The past decade has seen fundamental and dramatic changes in Indonesian national politics which have affected all aspects of public life. The forced resignation of President Suharto amid the Asian financial crisis in May 1998 ended the stranglehold of the authoritarian New Order regime which had ruled Indonesia for thirty-two years, and ushered in a new reformasi era characterized by rejection of many key features of the New Order. In a zeal to outlaw authoritarianism and build a more pluralistic democracy, Indonesia carried out four successive amendments to the 1945 constitution which, among others, abolished the social-political role of the armed forces, ensure a clear separation of power between the executive, the legislative, and the judiciary, enshrine the principles of human rights in the constitution, and allow the development of a truly multiparty system. To prevent the rise of another long-term leader like Suharto who was able to manipulate the Consultative Assembly to elect him for seven consecutive five-year terms, the presidential term has been limited to two non-renewable five-year terms while the president and vice president are to be directly elected by the people. As a reaction to the overt centralization under the New Order which gave little room for regional initiatives, the post-Suharto governments have also introduced sweeping regional autonomy.

After difficult early years of transition, marked by various internal conflicts and political instability, relative normalcy and political stability seemed to have been restored by 2004 as Indonesia succeeded in holding its first direct presidential election, affirming its status as the world's third-largest democracy. The newly democratic Indonesia recognizes freedoms of expression and association as key principles, giving rise to a vibrant and increasingly critical civil society, freewheeling media, and numerous political parties. These fundamental changes in Indonesia's political landscape have led to a re-structuring of relations between the state and society, between the central government and the regional governments, and between the various institutions of the state, which in turn has transformed the ways that decisions are made. One of the key areas affected by these political changes is in the making and implementation of Indonesian foreign policy, which during the previous era had been the prerogative solely of the predominant executive.