Indonesia and Israel have no formal diplomatic ties due to the indirect tensions resulting from the decades-long Israeli–Palestinian conflict, although they maintain quiet trade, tourism, and security contacts. In 2012, Indonesia spoke of upgrading relations with Israel and opening a consulate in Ramallah, but this agreement was never implemented.

Relations between the two countries have worsened since the 2023 Gaza war, especially when Israel attacked and occupied an Indonesian hospital in Gaza. It was reported that this increased Indonesia's support for Palestine.

As Indonesia is working towards accession to the Organization for Economic Co-operation and Development (OECD), Israeli media reported in 2024 that Indonesia has committed to establishing diplomatic ties with Israel for the first time. The OECD Secretary-General, Mathias Cormann, confirmed that Indonesia must establish diplomatic relations with all OECD member countries before any decision on its admission to the OECD is made. However, the Indonesian government denied reports of any plan to develop diplomatic ties with Israel before any two-state solution is made and confirmed its support for Palestine's independence.

History Old Order (1945–1967) In December 1949, shortly after the Dutch government signed the transfer of sovereignty to Indonesia, President Israel Chaim Weizmann and Prime Minister David Ben-Gurion sent telegrams to President Indonesia Sukarno and Foreign Minister (later Vice President) Mohammad Hatta. They conveyed their congratulations. In January 1950, Foreign Minister Israel Moshe Sharett sent a telegram to Hatta, informing him that Israel had decided to grant full recognition to Indonesia.

“Hatta responded to Sharett and Ben-Gurion’s gesture with thanks, but offered no reciprocal diplomatic recognition,” wrote Colin Rubenstein, executive director of the Australia/Israel and Jewish Affairs Council (AIJAC), in “Indonesia And Israel: A Relationship In Waiting,” published in the Jewish Political Studies Review, March 2005.

Feeling that his response was unrequited, Sharett wrote again regarding the plan to send a goodwill mission to Indonesia. In a reply letter sent in May 1950, Hatta suggested that the mission be postponed indefinitely. Indonesia’s reluctance to engage with Israel continued. In June 1952, the Antara news agency reported that the Indonesian government had no intention of recognizing Israel. This news was picked up by the press in Arab countries and Pakistan.

"The reason is that the majority of Indonesia's population is Muslim and because Arab countries had supported Indonesia during its struggle for independence," Rubenstein wrote.

In 1953, Sukarno began to propose a conference of Asian and African countries to be held in Indonesia. At a meeting of prospective participants, countries such as Burma, India, and Sri Lanka supported Israel's inclusion. However, Indonesia, along with Pakistan, steadfastly opposed the proposal. Ultimately, when the Asian-African Conference was held in April 1955, Israel did not participate. In 1957, when the Indonesian national team qualified for the Asian zone and faced Israel to qualify for the 1958 World Cup in Sweden, Indonesia refused to play in Jakarta or Tel Aviv, the capital of Israel. Indonesia only wanted to play at a neutral venue, but this was rejected by the International Federation of Football Associations (FIFA). Indonesia withdrew. Not only that, Sukarno even loudly opposed Israel's participation in the 1962 Asian Games in Jakarta.

New Order (1967–1998)

However, with the transition to the New Order and the inauguration of General Suharto as president, military and intelligence relations between the two countries opened up through unofficial channels, primarily through Iran and Turkey.

In 1971, Indonesian and Israeli military officers are believed to have started negotiations on transfer of military hardware and sharing of intelligence on global communist terrorist groups. In November the following year, some counter-battery radars for accurate artillery fire were bought by the Indonesian military from the Israel Military Industries. In March 1974, a team of 27 officers and 90 soldiers from the Indonesian Army were sent to study a 2-month course to Israel on artillery radar and land surveillance, as well as ELINT and SIGINT from the Israeli Defence Forces. In January 1975, the Indonesian Navy and Indonesian Air Force sent a 60-man team to Israel to learn special insertion and covert operations from Shayetet 13 and the Israeli Navy. This resulted in the establishment of the Special Forces Training School to train small Kopassus units in air and naval infiltration. In August 1976, Indonesian and Israeli Chiefs of Air Staff met during a supposedly coincidental visit to Tehran to discuss the Indonesian procurement of 35 Douglas A-4 Skyhawk fighter aircraft from Israel, which were ultimately delivered in 1981–82 under Operation Alpha. Indonesia is also interested in Israeli-made drones, especially the IAI Searcher and IAI Heron drones. Four Searcher UAVs have been delivered through Philippines Kital Group, with Heron UAV still in consideration. Searcher drones leased from Singapore also assisted Indonesian army in Operation Tinombala.

In 1993, Prime Minister of Israel Yitzhak Rabin met Indonesian president Suharto at his private residence in Jakarta. This, what press said was Rabin's unscheduled visit, happened during Suharto's chairmanship of the Non-Aligned Movement and shortly after the Oslo Accords. This was the first ever high-profile meeting between both leaders.

Reformation era (1998–present) In 1999, after entering the Reformation era, Indonesian president Abdurrahman Wahid and Foreign Minister Alwi Shihab mentioned their wishes to open ties with Israel although only at the level of economic and trade links. Wahid believed that Indonesia has no reason to be against Israel. He pointed to the fact that Indonesia has "long-term relationships" with China and the Soviet Union, two countries he viewed as having atheism as part of their constitutions, and further explained that Israel "has a reputation as a nation with a high regard for God and religion" However, after Wahid's removal from office in 2001, no effort was maintained to improve the relations between Indonesia and Israel.

SBY presidency (2004–2014) In 2005, Indonesia said that establishing full diplomatic ties with Israel will only be possible after peace has been reached between Israel and Palestine. Israeli Foreign Minister Silvan Shalom held a discreet first meeting with his Indonesian counterpart Hassan Wirajuda during a UN summit in New York City in September 2005. However, President of Indonesia Susilo Bambang Yudhoyono ruled out establishing formal diplomatic ties but said: "Any communication between Indonesian and Israeli officials will be oriented to the objective of assisting the Palestinian people in gaining their independence".

In 2006, Indonesia and several Islamic groups in the country condemned Israel's ongoing military operation in Gaza and demanded the release of arrested Palestinian officials, and also called on Israel to withdraw its forces from Lebanon during the 2006 Lebanon War. The Indonesian Foreign Ministry advised that the national tennis team was pulling out of its Fed Cup matches in Israel, saying "We are witnessing a military invasion by Israel and the arrest of scores of Palestinian officials...It is now impossible to play there".

In a visit to Singapore in 2006, the Israeli Arab diplomat Ali Yahya called for direct ties between Israel and Indonesia. In an interview with The Jakarta Post he said, I misunderstand why the relationship between the majorities of Muslims in Asia is hostile to Israel. If it is because of Israel and Palestine, then (how can it be reconciled that) we have peace with Jordan, Egypt, Morocco, but not with eastern Asia?

We protect the holy places in Israel, respect the Arabic language, and bring imams and rabbis together to have discussions. I am posing a question if the Muslim countries in Asia can open the gate to their country for us, so that we can open up relations with them.

There are so many opportunities in Israel and by stressing the need for cooperation we would like to get these countries to also have a share of these opportunities. But to do that, we need to have the opportunity to talk directly to these countries, which I hope, will come up soon.Diplomat says Israel open to direct ties with Indonesia. BBC Monitoring International Reports| January 27, 2006, Source: The Jakarta Post, Jakarta, in English 26 Jan 2006

In 2008, the Jakarta Post printed a letter from Israeli Deputy Minister of Foreign Affairs, Majalli Wahabi, urging Indonesia to take a role in advocating for peace in the Middle East. Analysts suggested that the printing of the letter might be a signal of a thaw between the two nations."Israeli-Indonesian Entree", Dateline World Jewry, World Jewish Congress, July/August 2008 However, the Gaza War that lasted from late 27 December 2008 to 18 January 2009 affected relations. Indonesia harshly condemned Israeli actions, labeling it as "aggression", and expressed its support of the Palestinians.

Jokowi presidency (2014–2024) In March 2016, Israeli Prime Minister Benjamin Netanyahu called for normalization of ties with Indonesia, citing "many opportunities for bilateral cooperation" and adding that reasons preventing relationship between the two countries were no longer relevant. However, Indonesia refused, stating that it would only consider normalization if Palestinian independence is fulfilled.

In 2018, member of Presidential Advisory Council Yahya Cholil Staquf visited Israel to meet Benjamin Netanyahu and joined a Jewish Forum, which was responded negatively by the Indonesian public.

Indonesia criticized Israel's actions during the 2021 Israel–Palestine crisis, and together with Malaysia and Brunei urged the United Nations to end "the atrocities carried out against the Palestinian people". In June, Sagi Karni, Israel's ambassador to Singapore, said that Israel would be willing to establish diplomatic relations with southeast Asia's Muslim-majority countries, including Indonesia: "We are willing to talk, we are willing to meet, and the door is open as far as we are concerned. I don't think it's so difficult to find us."

In 2023, Israeli Olympic shooter Sergy Rikhter withdrew from international competition in Jakarta after the International Shooting Sport Federation (ISSF) refused to allow him to compete with any symbols representing Rikhter's home country of Israel. In order to qualify for the 2024 Summer Olympics in Paris, athletes are required to have participated in at least two ISSF Championships during the Qualifying period, reach a Minimum Qualifying Score (MQS), and secure a place in one of five quotas within a series of four World Cup meets, of which Jakarta is the first in this cycle. Richter won gold for Shooting at the 2019 European Games in 10 metre air rifle and competed in Tokyo Shooting at the 2020 Summer Olympics – Men's 10 metre air rifle. Reportedly, World Cup organizers informed Richter and the Israeli federation they would only allow him to participate with his weapon if he competes with identification symbols of the ISSF or the flag of the International Olympic Committee. Richter rebuffed the ISSF and chose not to compete in the World Cup, in part stating,