It’s been 17 years since Indonesia resumed formal diplomatic relations China on 17th August, 1990. Indonesia did not want to build up too close relationship with China at the beginning, only some obvious improvement on economical aspect. In early 1990s, Indonesia was suspicious of China’s intention on issues like South China Sea issue, Natunas Island dispute, Indonesian Chinese issue. China’s political, economical and military strength has becoming surprisingly strong after its reformation in the early 1990s. Facing with China’s formidable strength, Indonesia has no choice but to carry out engagement policy based on realistic consideration. However, those concerns mentioned above also undermine any closer progress between Indonesia and China.