evidence: China’s latest use of grey zone fishing operations in the North Natuna Sea to challenge Indonesia’s sovereign right to fish and exploit the natural resources in its exclusive economic zone (EEZ) appeared to be a victory at first glance. At one point, about 50 Chinese fishing vessels accompanied by two oversized white hulls fished unimpeded in Indonesia’s EEZ. [...] Unlike the spate of bilateral incidents in 2016, where a warning shot from the Indonesian navy led to the injury of a Chinese sailor, having learned from experience the government prioritized peaceful diplomacy in handling the Natuna conflict. Responding vigorously yet proportionately was key to the resolution of this incident. [...] Through a combination of peaceful diplomacy and domestic engagement, Indonesia was able to manage the Natuna issue without significant domestic or international controversy. Its national interests in the North Natuna Sea were protected without jeopardizing its burgeoning economic relations with China, nor poisoning domestic opinion of Chinese investments.