as the 1st century AD, Southeast Asia was the place of a network of coastal city-states, the centre of which was the ancient Khmer Funan kingdom in the south of what is now Vietnam. This network encompassed the southern part of the Indochinese peninsula and the western part of the Indonesian archipelago. These coastal cities had a continuous trade as well as tributary relation with China from very early period, at the same time being in constant contact with Indian traders. The rulers of the western part of Indonesia adopted Indian cultural and political models e.g. proof of such Indian influence on Indonesian art in the 5th century, i. e. an Amaravati Buddha statue found in southern Sulawesi and a Sanskrit inscription found east of Jakarta. Three inscriptions found in Palembang (South Sumatra) and on Bangka Island, written in a form of Malay and in an alphabet derived from the Pallava script, are proof that these "Indonesians" had definitely adopted Indian models while maintaining their indigenous language and social system. These inscriptions reveal the existence of a Dapunta Hyang (lord) of Srivijaya who led an expedition against his enemies and who curses those who will not obey his law. Being on the maritime route between China and South India, the Malay peninsula was involved in this trade The Bujang Valley, being strategically located at the northwest entrance of the Strait of Malacca as well as facing the Bay of Bengal, was continuously frequented by Chinese and south Indian traders. Such was proven by the discovery of trade ceramics, sculptures, inscriptions and monuments dated from the 5th to 14th century CE. The Bujang Valley was continuously administered by different thalassocratical powers including Funan, Srivijaya and Majapahit before the trade declined. Kedah inscriptions In Kedah there are remains showing Buddhist and Hindu influences which has been known for about a century now from the discoveries reported by Col. Low and has recently been subjected to a fairly exhaustive investigation by Dr. Quaritch Wales. An inscribed stone bar, rectangular in shape, bears the ye-dharma hetu formula in Pallava script of the 7th century, thus proclaiming the Buddhist character of the shrine near the find-spot (site I) of which only the basement survives. It is inscribed on three faces in 6th century, possibly earlier. Except for the Cherok To'kun Inscription which was engraved on a large boulder, other inscriptions discovered in Bujang Valley are