ForeignRelations are all activities having regional and international aspects that are conducted by the central and regional governments and their agencies or state institutions, enterprises, political organizations, community organizations, non-governmental organizations, and Indonesian citizens.
Foreign Policy is the policy, attitude, and steps taken by the Government of the Republic of Indonesia in pursuance of relations with other states, international organizations, and other international legal subjects in the context of dealing with international issues in order to attain the national objective.
Authority for conducting ForeignRelations and implementing the Foreign Policy of the Government of the Republic of Indonesia is vested in the President, whereas the declaration of war, establishment of peace, and conclusion of treaties with other countries shall require the approval of the House of Representatives.
Relations with the European Union have dramatically improved to the point where Iran is a major oil exporter and trading partner for countries such as Italy, France, and Germany.
Iran and Iraq restored diplomatic relations in 1990 but are still trying to work out written agreements settling outstanding disputes from their eight-year war concerning border demarcation, prisoners-of-war, and freedom of navigation and sovereignty over the Shatt-al-Arab waterway.
Relations with the states of the (Persian) Gulf Cooperation Council (GCC), especially with Saudi Arabia, have improved in recent years.