Investasi China Di Indonesia

Investasi China Di Indonesia – You are reading Chapter 3 of the article on China, Beyond Blocks: Global views on China and US-China relations. Click here for the table of contents.

The two strongest factors shaping Indonesia’s relations with China today are domestic politics and the long-established Chinese diaspora, which is economically influential despite making up only 3 percent of the population, Indonesia’s relations with China have grown and developed greatly over the past 70 years have from the neighborhood. Allies (1950s-1965) to enemies (1966-1990), to distant allies (1990-2014), to their current close partnership. Ethnic Chinese Indonesians have often played a role in promoting or hindering their country’s relations with China.

Investasi China Di Indonesia

China has been Indonesia’s largest trading partner since the signing of the Indonesia-China Strategic Partnership in 2005. Trade flow has steadily increased, leading to a widening trade deficit for Indonesia in 2008. Indonesian exports are dominated by intermediate goods (37.33 percent) and raw materials (33.43 percent).

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Intermediate goods also make up the largest share of Indonesia’s imports from China (31 percent), followed by consumer goods (18.79 percent).

Investment in both directions remained low until boosted by President Joko Widodo and President Xi Jinping (who have a close personal relationship), prompting a surge in investment under China’s Belt and Road Initiative (BRI). Inbound investment from China, including Hong Kong, in 2019-2020 ranked second after Singapore.

Chinese investments in Indonesia are focused on the mining and energy sectors. As of 2021, Indonesia had the highest number of coal-fired power plants built in China.

There is growing concern among the Indonesian public about the influence of Chinese goods and migrant workers and Indonesia’s inability to capitalize on business opportunities in the Chinese market. China’s biggest investment project — the Jakarta-Bandung high-speed railway — has been the subject of controversy over delays and cost overruns.

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The role played by ethnic Chinese Indonesians cannot be underestimated as they are the key players in economic relations between the two countries and are arguably the ones who have benefited most from the relationship. Dissatisfaction with Chinese investments on supposedly unequal terms also affects the Chinese diaspora and can lead to domestic tensions.

In the field of security, the two countries have established various confidence-building platforms, including the annual Indonesia-China Defense Security Consultation (established in 2006); the Xiangshan Forum; and the ASEAN Defense Ministers Meeting Plus (ADMM Plus). Still, security cooperation remains extremely limited, despite the signing of the joint defense industry development, exchange and training of military officers and joint military exercise in 2008 in 2008, and the signing of a comprehensive strategic partnership in 2013. The main reasons for this are the Indonesians The military’s continued distrust of China and public concern over China’s aggressive behavior in the South China Sea. Frequent incidents in Indonesia’s Natuna Sea (which borders the South China Sea) have raised fears about the threat China could pose to Indonesian territory. The risk of Uyghur terrorist operations in Indonesia is an additional security concern.

However, both China and Russia are seen as alternative security partners to balance troubled relations with the US and its Western allies.

Western countries are generally viewed as hypocritical because of their double standards on human rights. Frequent US-led interventions and support in developing countries are unpopular. Previous bitter experiences and distant ties with Western countries have prompted Indonesia to seek other security partners.

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Indonesia has experienced acrimonious relations with the United States and China. Indonesia seeks an “independent and active” policy (bebas active) in response to strategic US-China competition, as is often the case in great power rivalries. For Indonesia, their rivalry presents both opportunities and challenges.

Beijing has actively promoted investment and infrastructure projects through the Belt and Road Initiative (BRI), while Indonesia has failed to see clear economic dimensions to Washington’s Indo-Pacific strategy. However, US allies such as Japan, the EU and Australia have tried to improve economic ties with Indonesia; These countries are considered alternatives to China, so Jakarta employs a hedging strategy. The US apparently prefers to support other regional countries such as Singapore and Vietnam when it comes to business opportunities and investments.

In 2021, China launched the Global Development Initiative (GDI) to promote cooperation on poverty reduction and the implementation of the UN Sustainable Development Goals (SDGs). The new global initiative expresses both Beijing’s growing global ambitions and its willingness to take on greater “great power” responsibilities by providing global public goods. The eight focus areas of GDI are aligned with the ASEAN Community Vision 2025 and the Indonesian development programs. It can also be combined with the Indonesia-sponsored ASEAN Outlook on the Indo-Pacific (AOIP).

The government of Indonesia does not want to take sides in the geopolitical competition. Historical experience has shown that the US and China are equally capable of threatening Indonesia’s territorial integrity and security. Jakarta proposed the AOIP to pacify the Quad’s Indo-Pacific strategy to include China: It seeks to address tension points and areas for cooperation, and to contain, not exclude, China. Indonesia has also expressed concern about AUKUS, fearing the anti-China alliance will provoke nuclear proliferation in the Pacific and threaten overall regional security, including Indonesia’s exposure. Though Jakarta avoids openly welcoming the US presence in the South China Sea, it needs US and allied support against Chinese aggression. Indonesian diplomacy aims to build a stable region through dialogue and mutual trust; Great powers outside the region are welcome to cooperate, not dominate, let alone dictate.

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Public discourse mixes China as a country, PRC citizens and ethnic Chinese descendants of former Chinese migrants in Indonesia; The deterioration in identity politics targeted both Indonesia’s Chinese minority and the PRC.

Indonesians admire China’s amazing development and cultural wealth, but also fear China’s dominance of Indonesia’s economy and worry about China’s assertiveness in the South China Sea. There is skepticism about the impact of China’s rise.

The perception of Chinese economic dominance prevails at both the public and elite levels. However, elite perceptions vary, ranging from military and anti-communist groups who see China as a threat to moderate technocrats and bureaucrats who see both challenges and opportunities in China’s rise. Ethnic Chinese in business tend to like China; Many have sent the rising generation there in recent decades to work or study there.

There is no clear direction among President Widodo’s elites and supporters, as perceptions are divided between those who are optimistic about China and those who distrust Beijing.

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Some studies show Indonesian perceptions of China on certain issues. A BRI study found that while Indonesian diplomats were largely negative about Chinese intentions, they nonetheless welcomed the initiative and were optimistic that Indonesia would somehow benefit.

Bilateral economic cooperation through the BRI has been constrained by Chinese workers’ influence on projects in Indonesia, fears of China’s economic dominance, its aggressive stance in the North Natuna Sea, and the ethnic Chinese issue.

Indonesians have shown the most positive sentiment towards China during the Covid-19 pandemic as it has proven to be the most generous country in providing medical supplies, medicines and vaccines.

Positive perceptions could wane if China expands its economic dominance and political influence, if it acts violently in the South China Sea, if it continues to abuse the Muslim Uyghur population in Xinjiang, or if it interferes in domestic politics.

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Other possible triggers for negative feelings would be a large influence of mainland Chinese workers, an increase in identity politics in Indonesia, or changes in China’s policy towards Chinese abroad.

Overall, both the domestic public and the international community regard the Indonesian government under President Widodo as a close partner of China under President Xi. The personal factor seems to shape the relationship. However, public concerns about China’s economic dominance, naval clout and mistreatment of the Uyghurs have become sufficiently sensitive issues for the government’s attempts to expand economic ties with China.

Indonesia’s regional and global stance is not one of isolating China, a position consistent with its foreign policy principle of bebas aktiv (independent and active). It is also rational and pragmatic, as the Asian giant has become the engine of global economic growth and offers more opportunities than other major powers. Through the GDI, China has also signaled a greater willingness and willingness to be a responsible great power that provides global public goods. It seems more reasonable to accept China’s rise and work cooperatively to deal with China’s threats; Judgment and marginalization will fuel great power rivalries that will eventually jeopardize Indonesian interests.

Still, it is imperative for Indonesia to continue to put (friendly) pressure on China, as Indonesians do not want a rising power to emulate the unacceptable hegemonic behavior of the United States in recent decades. US support for Israel and interventions in many countries, especially Muslim countries, for economic and strategic purposes have soured Indonesian public opinion. Indonesian public reticence towards China is shaped by this rejection of hegemonic behavior. However, China’s criticism of the US’s often unfair and one-sided behavior could help formulate codes of conduct for an acceptable great power. On environmental and climate change issues, China has shown its willingness to comply with international standards and take the lead on some climate action.

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Indonesia needs to carefully manage its foreign policy to avoid being seen as a laggard


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