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Indonesia’s economic diplomacy to China and USA: a hedging strategy

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Indonesia maintains a strong commitment to the foundational principle that the country should adopt a “free and active” foreign policy. This commitment means that Indonesia will not enter into a formal alliance, but will actively pursue enhanced bilateral ties with both the United States of America (USA) and China. The aims to enhanced bilateral with both sides are to secure Indonesia’s benefit and prosperity.

Since independence, Indonesia has maintained a relatively cooperative and mutually supportive relationship with the both sides. The current security partnership is limited by Indonesia’s current operating and strategic capacities, and a desire to maintain a diverse range of cooperative relationships.

Relations between Indonesia, China and USA are currently characterized by a hedging strategy as an alternative to a neutral strategy, balancing or band wagoning.

This paper will explore Indonesia's strategy of “rowing between two reefs” in its diplomacy with China and USA. It will examine the challenges and opportunities that Indonesia faces in its political-economic relations with both sides, and how Indonesia can balance its economic and other strategic interests to maximize the benefits of its relationship with both sides while minimizing potential risks, to gain the ultimate goal of Indonesia diplomacy economic, The Prosperity of Indonesia.

As recommendation, in order to achieve the aim of obtaining and benefits and prosperity for Indonesia. Indonesia should be an active player in balancing both sides by:
1. Active in maintaining ASEAN centrality, by taking ASEAN as the bridge to bring all central powers, especially USA and China, into the positive involvement in the region.
2. Active in strengthening economic integration, by taking Indonesia economic into initiatives such as ASEAN Regional Forum (ARF) or ASEAN Outlook on the Indo Pacific (AOIP), it will strengthen Indonesia’s bargaining power in dealing with both sides.
3. Active in build stronger partnership with the two sides, this will help to mitigate the risks of great power competition and promote greater cooperation on shared challenges such as climate change, cybersecurity, digital transformation and public health, etc.

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Ketersediaan

2023-0058

Sesparlu 72-2023

Training Materials Repository

Tersedia

Informasi Detail

Judul Seri

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No. Panggil

Sesparlu 72-2023

Penerbit

Jakarta : Kementerian Luar Negeri., 2023

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

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Klasifikasi

NONE

Tipe Isi

text

Tipe Media

computer

Tipe Pembawa

online resource

Edisi

-

Subjek

-

Info Detail Spesifik

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Pernyataan Tanggungjawab

UPT Sekolah Staf dan Pimpinan Luar Negeri

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