This article discusses the nature of the education relationship between Indonesia and the US. The article examines two hypotheses. The first hypothesis is that transnational education constitutes a new type of imperialism by perpetuating knowledge dependency and financial dependency through the transfer of knowledge and foreign aid in education. Of particular interest will be the themes of "knowledge dependency" and "financial dependency". In contrast to the first hypothesis, the second holds that transnational education advances learning about and from other states, and has the potential to improve relationships, and promote international understanding. This article concludes that although the one-way transfer of knowledge from, and dependence on, foreign experts is evident, the Indonesian government has attempted to reduce dependence on foreign countries, whether that reliance was on knowledge or on finance. Although the Indonesia-US education relationship is politically motivated towards serving the interests of each, most respondents believed that any US political agendas were unacceptable. The experiences of both Indonesian and American respondents show that the relationship enhances and improves understanding between Indonesia and the US through academic exchanges and scientific and research links.