The Bumpy Rise of Indonesia.

Summary

The video script discusses Indonesia's rapid economic growth and its potential to become the world's fourth largest economy by 2050. It highlights ambitious projects like a new capital in Borneo and Indonesia's strategic position between China and the US. The country's rich natural resources, particularly nickel, and its role in global trade through the Strait of Malacca are emphasized. The script also touches on Indonesia's political history, current challenges, and its delicate balancing act between aligning with global powers and maintaining neutrality.

Takeaways

• 📈 Indonesia is predicted to become the world's fourth largest economy by 2050, after China, India, and the US, with a 5.3% GDP growth in 2022 marking its highest in nine years.
• 🌳 The Indonesian government is considering building a new capital city in the Bornean jungle to address issues like overpopulation, sinking, and environmental concerns in Jakarta.
• 🌐 Indonesia's strategic location, including control over the Strait of Malacca, places it at the center of U.S.-China rivalry and makes it an important player in international geopolitics.
• 🏝️ Indonesia is the largest archipelagic state, comprising over 17,000 islands, and its vast geography contributes to its socio-economic potential.
• 🕌 As the world's largest Muslim country, Indonesia's religious and cultural diversity has been shaped by historical trade and colonization.
• 🇮🇩 Post-independence, Indonesia faced internal unrest and political challenges, including a significant conflict with the Communist Party in the mid-20th century.
• 📊 Despite being the 16th largest economy, Indonesia ranks 25th in exports, indicating a need for more open trade policies to boost its global economic standing.
• 🚀 Indonesia's economy is heavily reliant on natural resources, particularly nickel, which is crucial for the automotive and battery industries.
• 🛑 The government's protectionist policies, such as banning nickel exports, aim to encourage foreign investment in local processing, but may not be effective for all commodities.
• 🌐 Indonesia seeks a neutral or non-aligned stance in the face of U.S.-China rivalry, reflecting a historical preference for neutrality and public sentiment.
• 🔄 Indonesia's engagement with both China and the U.S. includes military exercises, investment, and participation in initiatives like the Belt and Road, aiming for a pragmatic balance between the two powers.

Q & A

What was the prediction made by Pricewaterhousecoopers in 2017 about Indonesia's economy by 2050?

The report predicted that by 2050, Indonesia would be the world's fourth largest economy, behind only China, India, and the US.

What was Indonesia's highest GDP growth rate in the last nine years as of 2022?

In 2022, Indonesia achieved its highest GDP growth in the last nine years, with the economy growing by 5.3 percent.

Why is Indonesia planning to create a new capital city in the Bornean jungle?

The growing economy is being spurred by ambitious projects such as creating a new capital city to address issues like Jakarta's overpopulation, sinking, and environmental challenges like floods, congestion, and pollution.

What is the significance of the Strait of Malacca to Indonesia and the world?

The Strait of Malacca is a critical trade hub controlled by Indonesia, serving as the shortest sea route between the Indian and Pacific Oceans, and is vital for global maritime trade, especially for oil supplies.

What is the historical context of Indonesia's struggle for independence and its first years as a unified nation?

Indonesia declared independence on August 17, 1945, under the leadership of Sukarno and Muhammad Hatta. Post-independence, the country faced internal unrest and external influence from various powers, including the Dutch, Americans, British, and Soviets.

How did General Suharto's rule impact Indonesia's political landscape?

General Suharto ruled Indonesia in an authoritarian manner for 30 years after violently suppressing a communist coup attempt, leading to mass purges and significant political and social changes.

What is the current state of Indonesia's democracy?

Today, Indonesia is considered the third largest democracy in the world after the United States and India, although it is described as a fragile one due to ongoing challenges.

What are the economic ambitions behind Indonesia's plan to relocate its capital?

The new capital, Nissan Tara, is envisioned as a low-carbon superhub supporting the pharmaceutical, health, and technology sectors, and promoting growth beyond the island of Java.

Why is Indonesia's nickel industry significant on a global scale?

Indonesia has the largest nickel reserves in the world, which is crucial for the production of batteries in the automotive industry, making it a key player in the automotive revolution.

What is the strategic approach of Indonesia in terms of its international relations, especially with China and the US?

Indonesia seeks a neutral or non-aligned stance, trying to maintain a pragmatic middle ground between China and the US, engaging with both powers through cooperation in various sectors.

What are the internal challenges that Indonesia faces despite its growing international importance?

Internal challenges include fragile institutions, high levels of economic inequality, and uneven democratic and economic progress, which provide a shaky foundation for Indonesian ambitions.

Outlines

00:00

🚀 Indonesia's Rapid Economic Growth and Strategic Importance

In 2017, a report by PricewaterhouseCoopers predicted that Indonesia would be the world's fourth-largest economy by 2050, behind China, India, and the US. Six years later, Indonesia is on track to meet these expectations, achieving its highest GDP growth in nine years in 2022 with a 5.3 percent increase. Ambitious projects, including creating a new capital city in Borneo, and its strategic control over the Strait of Malacca, place Indonesia at the center of the US-China rivalry. The nation's socio-economic potential and strategic geography ensure its growing role on the international stage.

05:02

🌏 Indonesia's Geographic and Historical Significance

Indonesia, the largest archipelagic state in the world with over 17,000 islands, has a rich history shaped by its strategic location and diverse ethnic groups. Significant islands like Sumatra, New Guinea, and Kalimantan would be among Europe's largest countries if located there. Indonesia's position between the Indian and Pacific Oceans made it a key trading post, attracting Muslim merchants and later European colonizers. The Dutch played a significant role in its history until World War II, when Japanese occupation and subsequent independence movements led by Sukarno and Muhammad Hatta culminated in Indonesia's independence in 1945. The post-war period saw internal unrest and political upheaval, eventually leading to Suharto's authoritarian rule and later democratization after the 1998 Asian economic crisis.

10:02

🏙️ Indonesia's Ambitious Capital Relocation and Economic Challenges

In 2019, Indonesia announced plans to move its capital from Jakarta to Nusantara in East Kalimantan to address issues like Jakarta's sinking, flooding, and pollution. The new capital aims to be a low-carbon superhub supporting various sectors and promoting growth beyond Java, which dominates Indonesia's economy. Despite criticism about the feasibility and environmental impact, the project is progressing, with inauguration planned for 2024. Indonesia's economy relies heavily on hydrocarbon exports, with significant coal and natural gas reserves, and the world's largest nickel reserves. While protectionist policies on nickel have attracted investments, similar strategies for other raw materials may be counterproductive.

15:03

🌐 Indonesia's Strategic Position and Neutral Stance

Indonesia's central location in Southeast Asia makes it a key player in the region, controlling critical trade routes like the Strait of Malacca. The country's importance to global trade, especially for China and the US, places it in a delicate position amid rising tensions. Historically, Indonesia has pursued a policy of non-alignment, a stance supported by public sentiment today. Despite the pressure from both superpowers, Indonesia aims to maintain neutrality, leveraging its position within ASEAN to enhance its strategic importance while avoiding the dominance of any single power.

20:04

🛡️ Indonesia's Diplomatic Strategy and Regional Leadership

Indonesia utilizes ASEAN as a buffer and strategic multiplier, allowing it to avoid direct confrontation with major powers while enhancing its regional influence. This approach, however, faces criticism for being passive and not addressing modern challenges effectively. Indonesia's policymakers seek to maintain a balance between economic growth opportunities offered by China and security partnerships with the US. Despite participating in military exercises with the US and benefiting from Chinese investments, Indonesia strives to remain neutral, aiming for equal engagement with both superpowers to avoid overdependence on either.

🏛️ Indonesia's Growing Global Role and Future Prospects

Indonesia's influence is growing, highlighted by its leadership in ASEAN, hosting the G20 Congress, and Jokowi's diplomatic efforts. However, its current strength is more potential than actual, hindered by internal issues like fragile institutions and economic inequality. If these problems are addressed, Indonesia could realize its predicted economic potential by 2050. Nonetheless, rising US-China tensions may force Indonesia to reconsider its neutral stance, as its strategic location makes it too important to remain uninvolved in potential conflicts.

Keywords

💡Indonesia

Indonesia is the world's fourth most populous country and the largest archipelagic state, comprising over 17,000 islands. It is central to the video's theme as it discusses the country's economic growth, geopolitical significance, and its strategic position in Southeast Asia. The script mentions Indonesia's potential to become the world's fourth largest economy by 2050 and its current status as a key player in regional dynamics.

💡GDP growth

GDP growth refers to the rate at which a country's economy expands. In the video, Indonesia's GDP growth is highlighted as a significant indicator of its economic health, with a mention of its highest growth in the last nine years at 5.3 percent, demonstrating the country's robust economic performance.

💡New capital city

The concept of a 'new capital city' emerges as Indonesia plans to relocate its capital from Jakarta to East Kalimantan. This ambitious project is part of the country's strategy to decentralize economic growth and address issues like overpopulation and environmental concerns in Jakarta. The script discusses the potential benefits and criticisms of this move.

💡Strait of Malacca

The Strait of Malacca is a critical trade route mentioned in the script, connecting the Indian Ocean and the Pacific Ocean. It is significant for global maritime trade, particularly for the flow of oil from Africa and the Persian Gulf, and is a strategic asset for Indonesia in the context of U.S.-China rivalry.

💡U.S.-China rivalry

The U.S.-China rivalry is a geopolitical theme in the video, illustrating the competition between the United States and China for influence in the region. Indonesia's position and policies are shaped by this rivalry, as it seeks to maintain neutrality and balance its relations with both powers.

💡ASEAN

ASEAN, the Association of Southeast Asian Nations, is a regional intergovernmental organization that Indonesia is a part of. The script discusses how Indonesia uses ASEAN as a platform to amplify its strategic importance and to engage with both China and the U.S. in a balanced manner.

💡Economic protectionism

Economic protectionism refers to policies that protect a country's domestic industries from foreign competition. The video mentions Indonesia's use of protectionist measures, particularly in the nickel industry, to attract foreign investment and processing within the country.

💡Democratization

Democratization in the script refers to the political transition in Indonesia from an authoritarian regime under Suharto to a more democratic system. The process began after Suharto's resignation in 1998 and is part of the country's ongoing political development.

💡Geopolitical significance

Indonesia's geopolitical significance stems from its strategic location and its role in regional and global affairs. The script discusses how Indonesia's position is central to the dynamics between major world powers and its efforts to maintain neutrality in the face of U.S.-China rivalry.

💡Resource-rich

Indonesia is described as resource-rich in the script, with large reserves of nickel, bauxite, copper, and tin. These resources are vital for the country's economy and play a role in its international trade and investment strategies.

💡Neutrality

Neutrality in the context of the video refers to Indonesia's foreign policy stance of not aligning with any major power bloc. The script highlights public sentiment and government policy favoring neutrality, especially in the face of U.S.-China tensions.

Highlights

PwC report in 2017 predicted Indonesia would become the world's 4th largest economy by 2050, behind only China, India, and the US.

Indonesia achieved its highest GDP growth in the last 9 years in 2022, growing by 5.3%.

Indonesia is considering creating a new capital city in the Bornean jungle to spur economic growth.

Indonesia controls the strategic Strait of Malacca, the world's most important trade hub.

Indonesia is at the center of the US-China rivalry due to its geographic and socio-economic potential.

Indonesia is the largest archipelagic state in the world, comprising over 17,000 islands.

Indonesia is the largest Muslim country in the world, with 87% of its 230 million people declaring the Muslim faith.

European colonizers arrived in Indonesia in the early 16th century, with the Dutch playing a significant role for the next 350 years.

Indonesia declared independence on August 17, 1945, under the leadership of Sukarno and Muhammad Hatta.

Internal unrest and external influences from the US, UK, and Soviet Union marked Indonesia's early years as an independent nation.

General Suharto ruled Indonesia in an authoritarian manner for 30 years after violently suppressing a communist coup attempt in 1965.

Indonesia began proper democratization after Suharto's resignation in 1998 due to the Asian economic crisis and social discontent.

Indonesia has recorded steady GDP growth of 5% on average over the past decade, excluding China and India.

Jakarta's sinking and environmental issues have prompted plans to relocate Indonesia's capital to East Kalimantan.

Indonesia has the world's largest nickel reserves, crucial for battery production in the auto industry.

Indonesia's economy relies heavily on hydrocarbon exports, being the top coal exporter and having significant natural gas reserves.

Indonesia's protectionist policy on nickel has attracted $20 billion in investment, but similar measures for other raw materials may not be as effective.

Indonesia seeks neutrality or non-alignment in the US-China rivalry, reflecting public sentiment and historical policy.

Indonesia uses ASEAN as a buffer and multiplier of strategic importance, but this policy may not address modern challenges effectively.

Indonesia tries to maintain a pragmatic middle ground between China and the US, engaging with both powers without favoring one over the other.

Indonesia's declared neutrality may not be sustainable in the event of a US-China conflict due to its strategic importance.

Addressing internal problems such as fragile institutions, economic inequality, and uneven progress is key to realizing Indonesia's future potential.

Transcripts

in 2017

pricewaterhousecoopers released a report

which predicted that by 2050 Indonesia

would be the world's fourth largest

economy behind only China India and the

US six years have passed and Jakarta

appears to be on track to meet these

expectations in 2022 Indonesia achieves

its highest GDP growth in the last nine

years the economy grew by 5.3 percent

the growing economy is being spurned by

ambitious projects such as the idea of

creating a new capital city in the

bornean jungle stretching over 5000

kilometers and de facto controlling the

world's most important trade Hub the

Strait of Malacca Indonesia is also at

the center of the Strategic U.S China

rivalry the geography but also the

socio-economic potential of Jakarta

predestines the country to play an

increasingly important role on the

international stage will Indonesians

choose a site what prospects does the

country have welcome to the 20s report

thank you

[Music]

foreign if you appreciate the video

consider leaving a like to help boost

the algorithm

Indonesia located in the heart of

Southeast Asia is the largest

archipelagic state in the world it

compromises more than 17 000 Islands if

the largest of these Sumatra New Guinea

or kalimantan which is the Indonesian

part of Borneo where located in Europe

they would be among the continent's

largest countries the entire archipelago

is almost 2 000 kilometers high and over

5000 kilometers wide effectively

separating the Indian Ocean from the

Pacific

the multitude of Indonesian Islands

which were only formed after the Ice Age

resulted in the development of hundreds

of indigenous ethnic and linguistic

groups

over time having mustard sea travel the

archipelago became an important trading

post this included Muslim merchants from

India China and Persia who brought Islam

to the islands today Indonesia is the

largest Muslim country in the world with

87 percent of the population some 230

million people declaring them Muslim

faith

if the beginning of the age of

geographical Discovery the Indonesian

Islands also became the focus of

European colonizers

the first European to arrive to the

archipelago were the Portuguese in 1512

but it was the Dutch arriving a century

later who played a more significant role

for the next 350 Years first under the

banner of the Dutch East India Company

and later the Dutch East Indies they

expanded their territorial control over

the archipelago it was not until the

second world war with the Japanese

Occupation and then the surrender of

Tokyo that hopes for Independence were

raised the country United under the

leadership of the duo of sukarno later

to become the first president and

Muhammad Hatta the first Prime Minister

Independence was declared on August 17

1945. in the post-war years the Dutch

unsuccessfully tried to re-establish

their influence and Indonesia now as a

unified entity began to write its own

history

as with any young country it was not an

easy story internal unrest consumed the

country the dispute with Malaysia

escalated and the Dutch Americans and

British also maintained their influence

as well as the Soviets from whom sukarno

began to buy arms in the 1950s this

strengthened the influence of the local

Communists who threatened tsukarno's

nationalist government and eventually

led to a pooch which the Communist Party

of Indonesia was accused of

orchestrating General suharto violently

suppressed it the retaliatory action led

to mass purges between half a million

and 2 million people were killed another

million people were sent to prisons and

camps suharto does consolidated his

power hosted sukarno and ruled the

country in an authoritarian manner for

the next 30 Years

only the Asian economic crisis of 1998

and massive social discontent led to

suharto's resignation from then on the

proper democratization of the country

began

today Jakarta is considered the third

largest democracy in the world after the

United States and India Albert it is a

fragile one

since 2014 the country has been led by

Jokowi dodo also known as jokovi

since the crash of 1998 Jakarta has

recorded steady GDP growth five percent

on average over the past decade

excluding China and India Indonesia has

been the fastest growing economy among

the countries with a GDP of more than 1

trillion dollars the results for 2022

were the best in the last nine years and

confirmed that the Indonesian economy is

on the right track

this makes it possible to think about

ambitious projects in 2019 news of

Indonesia's desire to relocate its own

Capital circulated around the world the

reasons for such a drastic decision are

many Jakarta with its population of 10

million is sinking and according to

Jeffrey Winters a professor at

Northwestern University the city will be

underwater in as little as five decades

in addition Jakarta is plugged by floods

while the residents suffer from constant

congestion and pollution of Water and

Air

the new capital Nissan Tara is to be

built from scratch on the east coast of

Borneo or kalimantan as Indonesians call

their part of the world's third largest

island just off the makas are strained

Southeast Asia's largest economy

envisions the new capital as a

low-carbon superhub that will support

the pharmaceutical health and Technology

sectors and will promote growth beyond

the island of java this last theme is

especially relevant Indonesia is

java-centric 50 of the country's economy

is in Java and the island is home to

some 160 million people kalimantan

despite being four times larger is home

to only 14 million people

the Jakarta metropolitan area alone has

more than 30 million people twice as

many as the whole of kalimantan not

surprisingly then the project has a host

of critics who point out that moving

such a metropolis into the jungle where

it has to be built from scratch is

nothing but a pipe dream

also the project is an environmental

threat to many plant and animal species

nevertheless it is moving forward in

January 2022 parliament passed a law to

move the capital from Jakarta to

kalimantan the inauguration is already

scheduled for 2024.

kalimantan is an important mining area

and Indonesia's economy relies heavily

on hydrocarbon exports in terms of

volume Indonesia exports the most coal

in the world natural gas deposits are

also sizable estimated that 13th in the

world and more importantly the second in

Asia

however the jewel in jakarta's Crown is

nickel Indonesia has the largest nickel

reserves in the world 22 percent of

global deposits nickel is a crucial

element for among other things the

production of batteries in the Auto

industry making Indonesia a key player

in the automotive Revolution

unsurprisingly Jakarta used to be a

vital exporter of the metal but is no

longer the government sensed its strong

position in the niche and the band

nickel exports in 2020

the aim was clear to force foreign

companies that could not afford to give

up Indonesian nickel to process the

metal locally and thus invest so far

this has succeeded in securing 20

billion dollars of investment in the

country

still what works in one case is not

necessarily a good solution in another

in addition to Nickel Indonesia is an

essential producer of bauxite copper and

Tin encouraged by the success of its

nickel protectionist policy that we

though the government is planning

similar measures for other raw materials

the problem is that jakarta's Global

Market position for bauxite tin and

copper is much weaker than for nickel

and so an exporter ban could be

counterproductive

the World Bank highlights a similar

problem Indonesia is the fourth most

populous country in the world the 16th

largest economy yet only the 25th

largest in terms of exports in other

words Jakarta is closed to the world

considerable barriers and trade tariffs

are holding back the country's internal

development protectionist policies have

proved effective in the case of nickel

but for the rest they are more of an

obstruction than a protection

now a quick ad break

today's episode is brought to you by

speakley speakley is a language learning

application that allows you to learn in

a whole new way research conducted by

speakers Founders led to a system in

which you learn only the key words and

sentences necessary to communicate in a

given language thanks to this you can

get solid communication skills in just

three to four months practicing only 30

minutes a day exercises include learning

new words pronunciation writing

listening and even music recommendations

in the desired language interestingly

you can choose which type of exercise

you want to focus on and which suits you

best currently thanks to speakally you

can learn Spanish French German Estonian

Russian Italian and Finnish all this is

available via Android or iOS app the

beginning of the year is a great time to

start learning at Full Steam and speakly

can help you with this if you want to

see how spickly works you will get the

first 7 Days of learning for free while

opting for the yearly plan will give you

a 60 discount try it out using the link

in the description

this peculiar distrust of Jakarta is

also very evident on the international

stage the country occupies a central

location in a place that is increasingly

becoming the gravitational center of the

world

in its vicinity are India China

Australia and across the Pacific Ocean

the United States

also substantial are a number of smaller

but important countries such as Vietnam

the Philippines Malaysia and Singapore

Indonesia is the web that binds the

region together

this web or less practically network has

its key hubs Jakarta has the greatest

control over the most critical trading

point on the world map the Strait of

Malacca to the north Malacca is closed

by Malaysia and Singapore but to the

South for almost 1 000 kilometers it is

in the Indonesian coastal zone it is the

shortest sea route between the Indian

and Pacific Oceans and Carries supplies

from Africa and the Persian Gulf among

others

this mainly includes oil most of which

first heads to China then to Japan

the scale of malacca's importance to

Global oil supplies is illustrated by a

comparison to two other vital hubs the

Suez Canal and the Panama Canal four

times as much oil passes through Malacca

as through Suez and 19 times as much as

through Panama in total the straight is

estimated to account for 60 to 70

percent of all World Maritime trade and

thus represent fundamental importance

for the largest global exporter China

and because of this dependence also for

beijing's greatest rival the USA

almost every war game that simulates a

conflict between Beijing and Washington

assumes a blockade of Malacca by the

Americans moreover the entire

archipelago would most likely be the

focus of the American Navy's attention

in addition to Malacca the Sunda and

makassar's traits among others would

also be blocked thus whether it wants it

or not Jakarta would once again find

itself in the spotlight of the great

powers

realizing the importance of its own

position as well as the strength

relations between China and America

Indonesia seeks a solution in neutrality

or non-alignment with either side

this is by no means new for back in the

days of the first Cold War on the back

of the 1955 Bandung conference in Java

sukarno ruled Indonesia also followed a

policy of non-alignment

this attitude corresponds well with the

public sentiment research by Australia's

low Institute shows that as many as 84

percent of residents believe Indonesia

should remain neutral in the event of

any U.S China conflict

only four percent think Jakarta should

support the US in a potential war and

only one percent think Indonesia should

side with China

similar parity can be seen in concerns

about the dominance 49 of respondents

thought China will be a threat over the

next decade and slightly fewer 43

percent said the same about the United

States overall confidence in Washington

is slightly higher but the distrust of

both superpowers dominates

so it seems that without those Indonesia

of 2023 is taking the same path as

sukarno's post-war Indonesia but this

time it seems to be even more difficult

during the Cold war between Moscow and

Washington Jakarta was on the periphery

of the system today at least

geographically it is at its core and one

key player the People's Republic of

China is right next door what does

Jakarta do in such a situation

firstly it seeks Refuge under a larger

umbrella

for Indonesia that is asean a political

and economic Union of 10 Southeast Asian

countries Widodo is aware of Indonesia's

importance but that importance emanates

more from geography than hard

macroeconomic numbers

while Indonesia adds the 10 asean

economies to its weight it Remains by

far the largest but it uses the group as

a kind of buffer and multiplier of

strategic importance

as Ivan laxman of the University of

Singapore rise in foreign policy quote

coordination among asean members has

helped Indonesia deny hegemony in

Southeast Asia to any great power during

and after much of the Cold War

this was largely done by enmeshing the

United States and China into asean's web

of regional institutions unquote

however according to the elite 1 u

university analyst this policy is out of

step with the challenges of the modern

world Indonesia does not want big powers

to decide for it meanwhile Indonesian

policy makers believe that their country

is a great nation and a regional leader

still there unwilling laxmana argues to

either take on the burden of managing

the regional order in a proactive manner

or to support other Regional powers in

doing so in other words Indonesia wants

to have a say in shaping the original

agenda without being responsible for its

implementation it uses asean for

precisely this purpose flaxvana believes

that the block has become an excuse for

Indonesia to shed responsibility and

avoid addressing the policies of the

great powers in the indo-pacific instead

of finding a way to address Indonesia's

strategic dependence and vulnerability

policymakers in Jakarta have settled for

the old passive tactic of waiting to see

what the big powers can offer

and what do the powers offer

Indonesia's perspective and choice are

not one-dimensional but can be

simplified and summarized as follows one

offers better prospects for economic

growth but also intimidates the region

and threatens to impose its own rules in

the long term this is China the second

offers to join the global existing

security architecture the vision of

imposing its own dominance is unlikely

but the economic prospects for Rapid GDP

growth are worse this is the United

States

on the one hand Indonesia is

participating in military exercises with

the Aus the last edition of the exercise

called Garuda Shield was record breaking

with three thousand soldiers from 14

countries

on the other Jakarta is benefiting from

China's white investment offerings

in 2022 China was the second largest

investor in the country after Singapore

however if Hong Kong companies were

included the Chinese would be first

Indonesia is also part of the notorious

belt and throat initiative and Beijing

has also declared willingness to

participate in constructing the new

capital

as Harvard's pranaivarada acknowledges

quote even though China and Indonesia

may not be the best friends China has

contributed to Indonesian development in

a way the US has been unable to do as of

yet unquote

in fact Indonesia tries to reject both

visions and tries to maintain a

pragmatic Middle Ground between the two

Powers Indonesia wants neither Pax

Seneca nor Pax Americana Jakarta seeks

equal engagement between the great

Powers through cooperation in various

sectors while being careful not to allow

one of them to become too close at the

expense of the other

yet in practice not taking sides and

being open to Chinese investment tips

the scales in China's favor Beijing like

Moscow is a supporter of a multi-polar

world

so jakarta's overt declaration to take

Beijing side would be of no use

in contrast the increase in interaction

between the Chinese Communist party and

the main Indonesian political parties as

well as Indonesian oligarchs is leading

to closer cooperation with the Chinese

at the highest level of government

these interdependencies in the event of

beijing's deep participation in the

construction of new santara the new

capital will only grow whether China

will use its growing economic advantage

to threaten Indonesia's strategic

interests remains to be seen but with

greater dependence comes greater

vulnerability especially given the

geographical proximity

and the Indonesians declared neutrality

is a noble approach however if a kinetic

sign a U.S war were actually to occur

neutrality may not longer be possible

the Indonesian islands and Straits are

too important and the Jakarta for the

time being is not strong enough to deny

the powers to interfere in its Coastal

Waters if Sinai U.S tensions continue to

rise the pressure on the Jakarta

government especially from the U.S to

forego neutrality will increase

otherwise one side of the conflict might

be imposed forcefully during a war

there is no doubt that Indonesia's

importance is growing the country is a

driving force behind Regional formas

such as asean and the rcep Indonesia

recently hosted the G20 Congress and

Jacoby was the first Asian leader to

appear in both Kiev and Moscow in an

attempt to mediate

still jakarta's strength continues to be

measured mainly by its geography and

future potential rather than hard data

in the Here and Now internal problems

should not be forgotten either fragile

institutions high levels of economic

inequality and uneven Democratic and

economic progress provide a shaky

foundation on which Indonesian Ambitions

rest

nevertheless if these problems are

systematically addressed the country

remains on a more democratic path and

the region does not descend into a hot

War there is a good chance that pwc's

predictions regarding Indonesia's

prospects in 2050 will become a reality

recently I had a meeting with a YouTube

analyst and she suggested that if I want

the channel to grow I should ask our

audience for feedback to help boost the

algorithm

so if you like this material please

press the thumbs up button or write a

comment you may also consider supporting

us on patreon

foreign

foreign