China-Indonesia Ties in the New Prabowo Subianto Era
Feb 21, 2024
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The podcast discusses China's swift engagement with the likely new Indonesian president, Prabowo Subianto, signaling strong ties. It explores the geopolitics surrounding Indonesia, including the delicate US-China balance. The conversation delves into Indonesia's nickel sector, worker safety concerns at Chinese facilities, and the impact of the US Inflation Reduction Act on Chinese entities in Indonesia.
China prioritizes building close ties with new Indonesian president, Prabowo Subianto, displaying early positive intentions.
Indonesia's strategic role in the global south includes navigating relationships with major powers like the US and China amid economic challenges.
Deep dives
Early Results of the Indonesian Election
At the time of recording, Prabohu Subianto leads the Indonesian election with 58% of the votes but faces fraud allegations, leading to caution in declaring him as the winner. China quickly congratulated the Indonesians on the successful election, contrasting the US and other governments' hesitance. China's immediate congratulatory approach aims to establish a positive relationship early, reflecting China's interest in maintaining influence.
Indonesia's Role and Challenges in the Global Context
Indonesia, a significant player in the global south, faces the challenge of balancing relationships with major powers like the US and China. Prabohu's promise to continue Jokowi's policies creates expectations of maintaining friendly ties with both countries, despite potential economic challenges. Indonesia's position as a major resource exporter adds complexity to navigating geopolitical tensions and competing interests.
Nickel Sector Dynamics and Geopolitical Implications
Indonesia's significant role in the nickel industry, particularly amid the transition to green technologies like electric vehicles, raises strategic concerns. Chinese investments in Indonesia's nickel sector highlight the importance of accessing Western markets for economic growth. Challenges such as the US Inflation Reduction Act, emphasizing US-China competition, and technological shifts to nickel-free batteries pose hurdles for Indonesia's nickel ambitions, demanding a delicate balance in managing international relationships and domestic interests.
They're still counting the votes in Indonesia after last week's election but it's all but certain that Defense Minister Prabowo Subianto will become the country's next president. While some of the world's major powers, like the U.S. and India, are holding back their official congratulations, the Chinese weren't so reserved.
Ambassador Lu Kang went to Prabowo's private residence on Sunday and was photographed playing with the likely president's cat, Bobby -- a clear signal Beijing is keen to build a close relationship with the new administration in Jakarta.
CGSP's Southeast Asia Editor Antonia Timmerman joins Eric to discuss the geopolitics now swirling over the archipelago and what's ahead for China-Indonesia ties in the Prabowo era.
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