The Center of Economic and Law Studies (CELIOS) has just released the results of an analysis entitled “China-Indonesia Provincial Index,” which analyzes China's influence in 38 Indonesian provinces.
The report covers eight main sectors, including academics, media, foreign policy, economics, local politics, society, law enforcement, and technology.
CELIOS Indonesia-China Division Director, Muhammad Zulfikar Rakhmat, revealed that the majority of China's influence is currently still concentrated on Java Island.
Jakarta leads with an influence score of 31.8 percent, followed by Central Java with a score of 29.5 percent. The findings underscore China's strategic focus on Java as the center of its engagement in Indonesia. However, economically, Zulfikar said, Central Java leads.
“In the economic sector, number one is Central Java. One of the reasons is because of the existence of special economic zone (special economic zone) in Batang Industrial Park, where there is a lot of Chinese investment,” said Zulfikar.
The strength of Chinese investment in Central Java, he continued, is also due to the closeness of Ganjar Pranowo to China. Ganjar, who once served as Governor of Java, met quite intensively with representatives from China, he said.
However, Zulfikar said, China's very strong economic influence does not necessarily have an impact on Central Java's economy. He emphasized that until now Central Java is still listed as one of the poorest provinces in Indonesia.
“So actually if you ask whether it has a positive impact or not no, no Also. And indeed, in this report we deliberately only research about footprint or the influence of existence but not seeing the impact. So it is not necessarily the case that China's significant presence is directly proportional to, for example, increased welfare or economy,” he explained.
After Central Java, Southeast Sulawesi and Central Sulawesi are provinces that also feel the strong influence of China. Zulfikar said, this is because of significant investment in the nickel industry and the development of industrial areas that also cooperate with China. However, he said, again this influence did not have a significant impact on the economy of these provinces.
“Even if we look at it, it actually brings negative impacts in terms of the environment, health and so on. So that's why when asked who benefits from all this? Is it Jakarta? Is it just a handful of people? Or does it only benefit Chinese companies?” he explained.
“Other provinces such as Banten, West Sulawesi, Riau, Central Papua, West Nusa Tenggara, North Maluku, Central Kalimantan, West Java, Jambi, Jakarta, and Aceh each scored 50 percent, indicating a moderate level of economic engagement. These provinces benefit from trade partnerships, investment projects, and joint ventures with China. Jakarta’s score of 50 percent reflects China’s moderate economic influence, with investment diversification extending beyond the capital,” he explained.
The strong influence of China's economy in Indonesia is not without reason. He said that based on data in 2023, Indonesia was the largest recipient of Belt and Road Initiative (BRI) funds in the world. Therefore, Indonesia is very important for China.
“I think Indonesia is also looking for investment from China, so China is not only coming, but also invited. So if we look at it globally, Indonesia is important, especially regionally, in ASEAN Indonesia is the largest country, its position is the most strategic and this is what China is looking for,” he said.
The China-Indonesia Provincial Index report presents a comprehensive study to assess China’s influence in various fields. In this study, “China’s influence” refers not only to the impact of government institutions, but also private companies and non-governmental organizations from China in Indonesia.
Diplomat Expert of the Ministry of Foreign Affairs Dino R. Kusnadi acknowledged the great influence of China in Indonesia. However, he emphasized that since independence, Indonesia has always been independent and active in conducting relations with other countries, so that it does not only focus on China. Indonesia, he said.
Dino said, regarding China, Indonesia has increased the form of its cooperation from strategic to comprehensive.
“It started from strategic cooperation in 2007. So in 2013 it became a comprehensive cooperation which means opening up large cooperation or collaboration in all fields, not only in critical economic, social and cultural fields but directly to the fields prioritized by Indonesia,” said Dino.
Dino further said that Indonesia's closeness to China was because Chinese leaders offered the best cooperation to Indonesia.
“If you look at President Jokowi's program, such as building infrastructure, for example. Their (China's) way of opening communication, opening the Indonesian economy, we have to admit that the choices offered by China to Indonesia are the best so far to meet investment, meet information technology, technology transfer, and also open upstream and downstream connections to create manufacturing,” he explained.
However, Dino emphasized that the Indonesian government is still trying to establish economic diplomacy with other countries.
“We always try to involve all countries that have an interest in the development of Indonesia, which of course can bring prosperity, and then can be a good way to collaborate. And I think with this study, I think there are some instruments to see whether the bridges are really beneficial for Indonesia or not,” he concluded. (gi/ab)
