I recently stumbled upon a little place called Karimantan that serves Indonesian food. We tried some fried rice and the red curry, and both were delicious and flavorful. The red curry is one of the most popular dishes at the restaurant. The food was slightly spicy but still at a tolerable level for someone like me who never eats spicy food.
The place can be a bit hard to find since it is inside a traditional market (Tung-Men market), but the signs are pretty colorful and recognizable. It is on a corner of the main alley of the market (where lots of mopeds zip through). The space is small and informal and is more suited for parties of 3 or less. I'd advise takeout for larger parties and eating in front of the Hsinchu city government building if the weather is nice. The place is quite clean, and the owner is really friendly and helpful. The prices are very reasonable (<100 NTD per dish), and all the menus have English translations. My guess is that the owner probably can speak English too. Their facebook page has lots of pictures if you want a preview of their food.
Here's a google map for Tung-Men market:
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