The Thesis Research Project of the Master's in Asia-Pacific Studies of Tamkang University aims to study international relations, in the cultural field between Taiwan and Indonesia. Since 1950 the Republic of Indonesia has diplomatic relations with the People's Republic of China, but despite this situation, both have maintained cultural and commercial relations. Currently, the government of Taiwan is carrying out an Initiative called the "The South New Policy” which proposes to strengthen ties with other countries in the region, including Indonesia. This research proposes to study the historical and cultural connections between Indonesia and Taiwan, taking into account the next aspects: the studies in Austronesian ethnology and linguistic; the historical connections with China; and the colonial past of both nations in order to compare the different political developments in their aspects of the society and a construction of national identity. This thesis seeks to answer if the use of the cultural diplomacy and soft power applied directly into the initiative of the New Southbound Policy could promote understanding and a substantial cooperation between Indonesia and Taiwan.