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Analysts in Washington and in NATO concluded that East Timor was too small, and too unstable to survive on its own.Furthermore, there was a clear need to maintain friendly relations with Indonesia Because of its growing Size and importance in a critical region.Upwards of half of the population of East Timor became refugees fleeing Fretilin-controlled areas.They were protected in West Timor by the Indonesian army. 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.Indonesia help sponsor the Non-Aligned Movement along with India and Yugoslavia, To assert its independence from both the Soviet Union and NATO.When Indonesia started selling rubber to Communist China in the mid-1950s, the Eisenhower administration protested and persuaded Jakarta to stop the sales, allowing friendly relations to resume.

Relations between the two nations are generally strong and close. The Dutch fought hard to regain control of Indonesia after the Japanese were defeated, but under Japanese occupation and nationalist new government had arisen that challenged the Netherlands. United States took the lead in the United Nations demanding a Dutch withdrawal.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.Regarding worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards.A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia.

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