China’s maritime territorial claims, and its diplomatic and military measures to attain them, have caused much regional concern in recent years. The expansive maritime sovereignty claims of China in the South China Sea flow from three key goals: the completion of its incomplete nationalist project of territorial consolidation and unifying the state; the desire to control the contested maritime periphery; and the garnering of sea-based resources such as oil and gas that have assumed critical importance for fuelling the economy of a rapidly modernising China.

The PLA Navy (PLAN)'s capabilities in key areas (assets, trained personnel, experience) are currently insufficient to support long-range sea lanes of communication (SLOC) defense missions. With sufficient effort, Beijing may eventually overcome these obstacles, but it would probably also have to acquire some form of overseas basing access, which its foreign policy still proscribes.

India and Indonesia, the two major regional powers, have in the recent past initiated intimate bilateral relations. With globalization as a key driver, the two countries have reconfigured their relationship particularly in the economic and defence spheres. The signing of the strategic partnership in 2005 has been critical to strengthening of the bilateral ties. Security relations are complimentary. While India needs to safeguard its interests in Southeast Asia, Indonesia needs a benign power like India for its security concerns.