Indonesian President Prabowo Subianto recently concluded his inaugural trip to China since assuming office, indicative of his desire to foster strong ties with Beijing to push his domestic economic plans. The journey, which took place between November 8 and 10, saw Prabowo meet with top Chinese officials including President Xi Jinping, Premier Li Qiang, and Zhao Leji, head of the National People’s Congress.
A series of deals worth around $10 billion were agreed upon during the visit, spanning sectors such as infrastructure, green energy, digital tech, and agriculture. Following their meeting, the leaders announced their intent to amplify cooperation in fields such as new energy vehicles, lithium batteries, photovoltaics, and the digital economy, as per Reuters.
Highlighting a key aspect of the visit was a strong focus on the worldwide shift towards cleaner energy. A significant agreement involved forming a Green Mineral Resources Partnership to aid both countries in transforming to renewable energy. This aligns with Prabowo’s wider aim of bolstering Indonesia’s renewable energy capabilities. The partnership also invites investment in Chinese-led industrial parks in Indonesia, especially the North Kalimantan Industrial Park, implying China’s potential vital role in developing Indonesia’s new capital city, Nusantara.
Interestingly, China backed Prabowo’s government’s initiative to offer free nutritious meals to Indonesia’s impoverished population, a major part of his wider social welfare plans. China committed to providing an unspecified amount of financial aid to this initiative. Prabowo expressed his hopes of learning from China’s successful poverty reduction strategies during his meeting with Li Qiang.
However, the visit appeared to overlook several issues linked to Chinese economic activities in Indonesia, including the environmental and social impacts of Chinese investments. For instance, large mining projects funded by China, such as nickel extraction in Sulawesi, have resulted in deforestation, water pollution, and the displacement of local communities.
Apart from environmental factors, the social consequences of Chinese investments in Indonesia have raised concerns. Many Chinese-funded projects have been criticized for substandard labor conditions, low wages, inadequate protection, and exploitative work settings. Moreover, local communities often find themselves overlooked in favor of foreign workers.
Unfortunately, the meetings didn’t address how both nations should balance economic activities with sustainable practices. This balance must ensure that Chinese investments align with Indonesia’s long-term environmental and social objectives while ensuring the economic advantages of these projects reach local communities.
Another notable element of the visit was an agreement for joint development in the contentious waters of the South China Sea, especially around the Natuna Islands. While this collaboration could offer economic gains, it could inadvertently validate China’s territorial claims in the South China Sea, rejected by an arbitral tribunal in The Hague in 2016. Implicit recognition of China’s claims could potentially compromise Indonesia’s sovereignty and complicate its relationships with other Southeast Asian claimant states, the United States, and its allies.
While the full details of the agreement are yet to be clarified, Indonesia’s handling of its relationship with China in the South China Sea will be a crucial test of Prabowo’s diplomatic balancing skills. Prabowo is keen to maintain strong ties with both the United States and China and has even scheduled a visit to Washington to meet President Joe Biden.
As a major player in the Indo-Pacific, Indonesia holds significant sway in balancing the competing interests of the U.S. and China. Prabowo has stressed the importance of ASEAN centrality in regional matters and affirmed Indonesia’s commitment to neutrality in the South China Sea disputes.
Prabowo’s decision to make China his first overseas stop as president demonstrates his continued commitment to deepening ties with China. However, this decision comes with a set of risks that need careful management, including potential over-reliance on Chinese investments, environmental and social challenges, and the need to uphold Indonesia’s sovereignty against China’s assertive actions in the region, particularly in the South China Sea.
