| Filetype: | svg |
| Mission1: | Embassy of Indonesia, Stockholm |
| Mission2: | Embassy of Sweden, Jakarta |
Indonesia and Sweden established diplomatic relations on 23 November 1950.[1] In recent years both nations demonstrate growing keenness to improve bilateral relations, as each head of government exchanged visits.[2] Indonesia has an embassy in Stockholm that also accredited to Latvia, while Sweden has an embassy in Jakarta that also accredited to East Timor.
After the Indonesian Revolution, Sweden recognized the new state of Indonesia in 1949. The diplomatic relations between Indonesia and Sweden was established in 1950, followed by the establishment of embassies in each counterparts capitals'. The first Indonesian President Sukarno visited Sweden on May 3–5, 1959.[3] The Swedish embassy in Jakarta is also accredited to Timor Leste that opened diplomatic relations with Sweden since 2002.
For most of the 1980s and 1990s the bilateral relations were rather strained, due to separatist Free Aceh Movement (GAM) leaders residing in Sweden at the time and making Stockholm their foreign base to gain international support and recognition.[4] During the aftermath of Aceh Tsunami, Sweden was among countries that promptly provided aid to devastated areas in Indonesia. In the next year, Indonesian Government and GAM leaders reconciled their differences through peace negotiations, with the conflict in Aceh ending in 2005. Sweden actively contributed in the Aceh peace process and gave assistance in post-tsunami reconstruction.
In 2008, Swedish Foreign Minister Carl Bildt visited Jakarta. In early 2012, King Carl XVI Gustaf of Sweden visited Indonesia, it was the first ever by a Swedish monarch. In November 2012, Prime Minister Fredrik Reinfeldt followed suit, also the first ever visit by a Swedish head of government. The courtesy call reciprocated with Indonesian President Susilo Bambang Yudhoyono visits to Sweden on 27–29 May 2013.
The two countries have signed Memorandum of Understanding to strengthen bilateral cooperation on sustainable urban development, science, innovation and research, healthcare and environment.[5] Indonesia is also keen to learn more from Swedish experience in maintaining its environment, such as developing renewable energy sources.[6]
Sweden is one of Indonesia's most important trade partners in Europe, and its bilateral trade with Indonesia is the highest among Scandinavian countries. The trade volume between Indonesia-Sweden has reached US$1.05 billion in 2011 and grow to US$1.46 billion in 2012.[6] In 2011 Swedish investment in Indonesia was stood around US$916,000 in 9 projects, in 2012 the figures rose to US$5.2 million in 11 projects.[2] [6] In 2021, Ambassador of Indonesia to Sweden introduced the Indonesian Investment Authority (INA), the first sovereign investment fund in Indonesia, responsible for supporting significant infrastructure projects in Indonesia. INA could be an opportunity to develop stronger economic cooperation with the support of many Swedish companies operating in the infrastructure and telecommunications sectors of Indonesia.[7] The two countries also have been in favor of the ASEAN-EU relationship, which has escalated into a Strategic Partnership in December 2020.[8] Sweden further provides support for the progress of the Indonesia-EU CEPA negotiations.