The research aims to analyze Japan’s political agenda in exercising its soft balancing strategy in ASEAN through the ASEAN-Japan cooperation projects (2011–2021). It also explores the diplomatic strategy and political agenda brought by Japan through the ASEAN cooperation projects and draws theoretical implications from Japan's rationale for favoring soft balancing as its preferred strategy. Further, this thesis identifies to what extent the implementation of the ASEAN-Japan cooperation projects affects Japan's status or position in ASEAN, who is involved in ASEAN-Japan’s dialogue, negotiations, and development cooperation, and what their roles are. This study uses the qualitative method to achieve its objectives. The most fundamental characteristic of qualitative research is seeing the problems studied from the perspective of the subjects studied. The discussion shows that Japan sees the merit of exercising its soft balancing strategy in Southeast Asia, particularly given the rising interest from the ASEAN Member States to partner with China. Second, in doing so, one strategy that Japan pursues is advancing cooperation between Japan and ASEAN through development cooperation projects, particularly in socio-cultural spheres. It is also important to note that Japan’s development aid, through its soft-balancing strategy, will continue to become one of Japan’s main instruments of foreign policy.

Keywords: ASEAN, Japan, soft balancing, foreign aid