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US Pressure on Indonesia to Reject China: What is going on?

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Indonesia’s economic and military importance in Southeast Asia have drawn attention from both the west and the east. With a GDP of $1.19 trillion in 2023, Indonesia is the region's largest economy and ranks 16th globally by nominal GDP. Its projected 5% growth in 2024 is driven by strong domestic consumption and substantial infrastructure investments. Foreign Direct Investment (FDI), totalling $47.5 billion in 2023, has significantly boosted key sectors like metal goods and telecommunications. Militarily, Indonesia has a substantial force of 400,000 active personnel and a $9.4 billion defense budget, underscoring its strategic regional influence.
Indonesia's position in global geopolitics has often been neutral, especially in the face of international tensions and challenges. However, in recent years, the country has shown an increasing inclination towards China over the United States and the West. This shift is driven by several factors, primarily economic and strategic considerations.
Economically, China's robust investment in Indonesia, particularly in the nickel industry, has solidified their partnership. Indonesia has become a leading global producer of nickel, a critical component for electric vehicle batteries, with Chinese companies heavily investing in the sector. This economic synergy has propelled Indonesia to supply over half of the world's nickel, making China its primary partner in this venture.
Strategically, Indonesia's stance is shaped by regional dynamics and the perception of the United States' reliability as a partner. While the U.S. has made significant diplomatic efforts in Southeast Asia, including high-level visits and the establishment of the Indo-Pacific Economic Framework, there are growing doubts about its commitment and consistency. These concerns have been exacerbated by the U.S.'s involvement in global conflicts, which some Southeast Asian countries perceive as destabilizing.
Furthermore, Indonesia's alignment with China is also driven by regional geopolitical realities. China is viewed as the most influential economic and political power in Southeast Asia, and Indonesia, along with other ASEAN nations, finds economic alignment with China advantageous despite underlying apprehensions about China's strategic intentions.
In this video, we explore the complex relationship of Indonesia with China and the US, from both historical and modern perspectives.
Indonesia's position in global geopolitics has often been neutral, especially in the face of international tensions and challenges. However, in recent years, the country has shown an increasing inclination towards China over the United States and the West. This shift is driven by several factors, primarily economic and strategic considerations.
Economically, China's robust investment in Indonesia, particularly in the nickel industry, has solidified their partnership. Indonesia has become a leading global producer of nickel, a critical component for electric vehicle batteries, with Chinese companies heavily investing in the sector. This economic synergy has propelled Indonesia to supply over half of the world's nickel, making China its primary partner in this venture.
Strategically, Indonesia's stance is shaped by regional dynamics and the perception of the United States' reliability as a partner. While the U.S. has made significant diplomatic efforts in Southeast Asia, including high-level visits and the establishment of the Indo-Pacific Economic Framework, there are growing doubts about its commitment and consistency. These concerns have been exacerbated by the U.S.'s involvement in global conflicts, which some Southeast Asian countries perceive as destabilizing.
Furthermore, Indonesia's alignment with China is also driven by regional geopolitical realities. China is viewed as the most influential economic and political power in Southeast Asia, and Indonesia, along with other ASEAN nations, finds economic alignment with China advantageous despite underlying apprehensions about China's strategic intentions.
In this video, we explore the complex relationship of Indonesia with China and the US, from both historical and modern perspectives.
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