Assessing China's Economic Influence in Indonesia: The Case of Jakarta-Bandung High-Speed Rail
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How to Cite

Intan, R. (2024). Assessing China’s Economic Influence in Indonesia: The Case of Jakarta-Bandung High-Speed Rail. Indonesian Quarterly, 50(3). Retrieved from https://journals.csis.or.id/index.php/iq/article/view/2003

Abstract


This article aims to assess how China wields its economic influence in Indonesia, using the Jakarta-Bandung high-speed rail project as a case study. It analyzes how China utilizes Indonesian state-owned enterprises (SOEs) as avenues for its influence activities. The first finding from the analysis pointed out that Indonesian SOEs are prime avenues for influence activities by external actors, particularly with China, in the economic domain. The business entanglements between SOE board of directors and commissioners with Chinese companies have been prevalent, implying direct and indirect ties. The second finding showed that the Jakarta-Bandung high-speed rail has been a case of preference amplification as an influence activity by China towards Indonesia. It is an instance where authorities in Jakarta through its SOEs and Beijing through its businesses and policy banks complement one another in their preferences, with inducement and persuasion as the methods employed.

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