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Soft power is being magnified as the most-talked-about categories of the twenty-first century. A paradigm shift toward soft power from hard power is being reached. Soft power is the ability to obtain what you want through co­option and attraction. ODA policy is being magnified as an important source of soft power. In this context this paper examines a wide range of issues relating to implication of ODA policy in terms of international politics. In the second place, this study reviews the historical process of ODA policy from cold war era to post cold war period and analyzes the perspective of donor's countries. On this theoretical background this thesis describes the distinctive features of Japan's ODA policy toward Indonesia. Indonesia is the first recipient country of ODA in a view of priority cooperation nation scale of Japan. Japan has been utilizing ODA from early on, because Japan's ODA plays an important role in forming bilateral partnership in the long run. The results show an material implications of Korean ODA policy.