After disagreement over how to deal with the issue at a summit in Phnom Penh on July 13, where ASEAN leaders failed to release a joint communique for the first time in the group's 45-year history, Indonesia’s foreign minister Marty Natalegawa has circulated a proposal for six principles on resolving disputes in the South China Sea. The principles emphasize implementation of a code of conduct, having self-restraint without the use of force, and the seeking of peaceful resolutions.

Will the weakening of ASEAN encourage some members to move closer to the U.S.? And will China and the U.S. intensify their "soft power" struggle for the hearts and minds of Southeast Asians?

...From the perspective of ASEAN, Korea has become a strategically important, economically crucial, and culturally rich partner. Korea’s soft power seems to make its impact felt everywhere in Southeast Asia. It fosters an atmosphere favorable for various exchanges between Korea and ASEAN....

University of Indonesia security expert Andi Widjajanto said it would be hard for Yudhoyono to rely only on soft power measures, such as dialogues, norms establishment and confidence-building measures, to reduce tensions without resorting to hard power.

India is in an enviable position in Southeast Asia as it can exercise leverage through its soft-power, a missing strand in strengthening ties with the countries of the Association of Southeast Asian Nations (ASEAN). A soft power approach however requires investments in institutions, through which India and Southeast Asian countries can strengthen their diplomatic outreach and understanding.

The two giants of the East Asia summit, the United States and China, have both attempted to exercise soft power during the regional talks with promises of funding. US Secretary of State Hillary Clinton announced $US600 million in aid for Indonesia, most of it for “green prosperity” in the world’s third-biggest greenhouse gas emitting nation.

Soft power and public diplomacy activities were rammed up ahead of the East Asian Summit (EAS) in Bali to lay the engagement groundwork. In Indonesia, a Department of Defence-funded integrated maritime surveillance system has just been handed over to the Indonesian government, with the US committed to supporting the programme until 2014.

It's a country where Shah Rukh Khan remains hugely popular. If you walk around the streets of Bali, inevitably someone will ask you if you have seen Kuch Kuch Hota Hai. The soft power of Bollywood is tangible in nooks and crannies of this vast country.