Yes, the 'moderate muslim' label has been under some pressure as few know exactly what it means and even fewer believe that the so-called moderates actually have a strong enough ablity to act as a voice of reason, to drown out the radical noise. Still, there is value in the concept and as Max Boot explains, much more so when we talk about nation states:

Ostensibly unified by religious belief, the Muslim world is in fact deeply divided by culture, ethnicity, sect and geography. Most Qataris and Malaysians have no interest in joining an anti-Western jihad; they are too busy getting rich trading with the West.

Boot is right, and the same applies to Indonesia too. But I would add that this conclusion shouldn't give way to unfettered optimism about our moderate friends. They have to balance phenomenal domestic and religious pressures, often having to turn a blind eye to less than moderate players. That particular knowledge has fueled the ports controversy which it seems has now been resolved with a palatable compromise.