Following WW2, Japan had banned its military from fighting abroad after 1945. Its military would only be used in self-defense. Japan's Prime Minister, Shinzo Abe passed legislation that would allow Japan to participate in "collective self-defense." The United States was particularly happy with the Japanese policy shift, whereas China was not content. China has been the dominating military power in the Asia-Pacific region, and with Japan being added to the equation, the balance of power could be threatened.
I think this is a good move for Japan, it's been over 60-years since the conclusion of World War II. The threats in today's world contrast those of the past greatly. With new non-nation-state actors such as ISIS and Boko Haram its even more important for nations such as Japan who share similar beliefs as the United States to participate in the global preservation of peace. More specifically, from what I've read, and my own personal intuition suggests that with such a high Muslim population, Indonesia could become a potential "breeding ground" for Islamic Extremists. Having Japan as an ally that can flex its military strength in the region, or as more desirable; gently guide Indonesia as to how to fight extremism should be seen only as beneficial to the Pacific and the world as a whole.
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