China in the World Calibrating China Ties - Indonesia
Sep 1, 2025
Yohanes Sulaiman, an associate professor focused on Indonesian politics and China–Indonesia relations, and Natalie Sambhi, a specialist in Southeast Asian security, explore Indonesia's complex ties with China. They discuss Indonesia's economic dependence on trade with China while facing pressures on local businesses. The conversation highlights maritime tensions due to territorial claims and the challenge of evacuating Indonesian workers in Taiwan amid rising regional conflicts. Their insights shed light on Indonesia's strategic balancing act in a rapidly changing geopolitical landscape.
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Complementary Yet Uneven Economic Ties
- Indonesia and China have a complementary but uneven economic relationship, with China as Indonesia's largest trading partner.
- China supplies capital and technology while Indonesia provides resources and a large consumer market.
Local Factories Hurt By Cheap Imports
- Yohanes recounts Indonesian factories closing because cheap Chinese imports undercut local prices.
- He gives a colleague's experience of having to close two-thirds of his stores due to competition from Chinese goods.
Enforce Environmental Rules On Investors
- Indonesia must enforce environmental and worker-safety laws on foreign investors to protect local communities.
- Balance attracting investment in nickel processing with stricter regulation and enforcement to prevent pollution and accidents.