Jakarta: Hillary Clinton's nomination as US secretary of state could prove tricky for Indonesia, a key ally in Southeast Asia in the US-led war on terror, because of a past funding scandal and her stance on trade and human rights.

Indonesia welcomed Barack Obama's presidential election victory, as he spent part of his childhood in Jakarta, and many Indonesians hope he will forge closer ties with Southeast Asia's largest democracy and biggest economy.

The Clintons also have a connection - through Indonesian businessman James Riady, whose family has substantial interests in real estate, retailing, and media in Asia.

In 2001, Riady paid a record $8.6 million in fines in the US for making illegal campaign contributions to Bill Clinton in the 1990s.

Now the Clinton-Riady relationship could come under scrutiny again, the question being whether it's an advantage or an encumbrance for either side.

Toxic

The relationship "has always been toxic for US-Indonesian relations and requires the utmost vigilance on both sides of the Pacific now that Hillary Clinton is slated to become the next Secretary of State," said Jeffrey Winters, professor of political economy at Northwestern University, Chicago, in an e-mail.

Hurdle

Could Hillary Clinton's move to the state department be unconstitutional?

The US Constitution forbids sitting Congress members from being named to any government post "the emoluments whereof shall have been increased during his term". The secretary of state's salary rose when she was New York senator. Harry Reid, the Senate majority leader, plans to introduce legislation to cut her prospective salary. The move was pioneered by President Nixon in nominating senator William Saxbe as attorney general.