JURNAL ILMIAH M-PROGRESS VOL.9, NO.2, Juni 2019 96 Fakultas Ekonomi – Universitas Dirgantara Marsekal Suryadarma 11 th International Conference on Malaysia-Indonesia Relations (PAHMI 11) Universitas Indonesia, 14-16 August 2017 MALAYSIA – INDONESIA: IN THE VORTEX OF INTERPRETATION Bambang B. Sulistiyono dan Mohd Zaidi Hajazi Dosen Manajemen Unsurya, Jakarta dan Professor of Sociology and Director, Institute of Malaysia Indonesia Studies (IKMI) Universiti Selangor, Malaysia bangsul76@gmail.co.id dan zaidihajazi@yahoo.com Abstract Malaysia and Indonesia are two countries with a relationship that is very unique. Its society has established kinship long before the two countries was formed, which resulted similarities in each other’s culture and customs. Both countries also play a very important role in associations of the Southeast Asian nations that is accommodated through the ASEAN forum. However, the relationship between Malaysia and Indonesia have not always been great, sometimes it touches the lowest state and at other times at the most harmonious. The Realist and Liberalist theory applies in studying relations between these two countries. Although waves of problems coming and going may occur naturally, plenty of formal efforts has also been done by both governments. There are three interesting time periods in this study; the relationship period most bitter (1963-1966), the most harmonious relationship period (1968-1982), and the period of friendly but tense relations (1983- 2010). Assessment of the two countries’ relationship dynamics is done through in qualitative approach with comparative analaysis and supported by the "Taxonomy Bloom" method. Many main informans with different backgrounds are the core informants who supported this study. Some are former government officials, academicians, military personnel and citizens who have had a history of being directly involved in the confrontation and many of the accuracy of data information can produce . From a comprehensive study a case was found, identifying that interpretation differences as well as similarities is what causes the two countries’ relationship experience highs and lows. Also through this study, the root of the problem can be understood therefore suggestion of solutions can be submitted. Key words : Interpretation, Conflict And Cooperation PROBLEM BACKGROUND Malaysia and Indonesia possess many similarities, especially in culture, language, religion and mores aspects. However, the bilateral relationship between Malaysia and Indonesia until now can be said to always experience ups and downs, although various attempts have been made to muffle the emergence of larger issues. The dynamics of conflict arose from the emergence of different interpretations evolving into mutual mistrust of one another, when the world in general and Southeast Asia in particular were influenced by the conflict between the Communist and Capitalist Blocks. Mistrust is very reasonable because there are differences in the historical background of the two countries. Indonesia gained independence through “resistance” to Western colonialism, while the formation Malaysia Raya was loaded with interest to