Indonesian President Abdurrahman Wahid said April 25 that foreign submarines must not sail through Indonesia's territorial waters without permission. He specifically warned Singapore, which has two brand new Swedish subs, that any movement outside the established transit corridor into Indonesian waters would warrant "stern actions." He also suggested that Indonesian forces take future action against fish poachers.

Wahid appears to have turned to nationalism to ease rising political friction in Jakarta. But because there is no distinct Indonesian identity, he is building one by creating a sense of collective embattlement – Indonesia versus the world. Wahid hopes to convert furor over internal politics into indignation directed abroad. Yet such a ploy could have unwanted side effects if Wahid's statements alienate regional allies. If the administration pounces on Singapore, for example, to solve internal problems, it could lessen the possibility of receiving foreign investment and support.

Many other confrontational statements precede the one Wahid made today. Just days ago, he warned the Australian government, which regularly flies planes into Indonesian airspace, to respect those boundaries or risk being shot down. In mid-April, he played up his refusal to obey a US State Department official who asked him not to travel to Cuba; "We are not a lackey of the US," he said. And in late March, he applauded military plans to build new bases, warning of an "international conspiracy" to undermine development in the East.

In Indonesia's geographically and ethnically disparate provinces, nationalism does not occur naturally. The country consists of 17,000 islands, of which 6,000 are inhabited by more than five different – often clashing – ethnic groups. Therefore, Wahid is creating national identity by defining Indonesia in opposition to others.

Interestingly, this could actually turn any dearth of foreign financial assistance into a political asset; he can argue that foreign powers not only disrespect territorial boundaries, but are hampering the country's economic growth as well. Historically, nationalism has allowed many troubled governments to maintain their grip on power. Under populist and nationalist Sukarno, the founder of Indonesia, the country experienced a period of political stability.

But at the same time, inflamed nationalist pride built solely on opposition to other countries could be dangerous for a nation almost completely dependent upon foreign support. Wahid's statements today, for example, could trouble relations with neighboring Singapore, especially if similar warnings ensue. To date, Singapore has been Indonesia's most loyal cheerleader, calling on ASEAN members, Hong Kong and others to invest in the country. Already, Indonesia has snuggled up to Malaysia, which clashes regularly with Singapore over bilateral issues. It might not take much Indonesian obstinacy to convince Singapore to shelve its pom-poms entirely.