Should We Worry about China? China’s Outward FDI and Aid in Indonesia

Citra Hennida

2018

Abstract

Based on data from the Investment Coordinating Board (BKPM), Chinese investment in Indonesia has increased significantly in recent years. The number of Chinese investments increased 12 percent in 2017 and shifted Japan's position as the second largest investor in Indonesia after Singapore. Indonesia's foreign debt to China also increased. Between 2010 and 2016, Indonesia's debt to China increased six times. It is the largest compared to the average increase of Indonesian debt to other countries that is only 1.3 points. This situation raises concerns that Indonesia's foreign policy will benefit China a lot. This concern is justified because there is no binding agreement beyond economic cooperation. Departing from this issue, research discusses whether the level of investment and large debt to China will affect the independence of Indonesia's foreign policy. The study was conducted in the period of 2014 to 2018 during Joko Widodo presidency.

Paper Citation

in Harvard Style

Hennida C. (2018). Should We Worry about China? China’s Outward FDI and Aid in Indonesia. In Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR, ISBN 978-989-758-493-0, pages 38-46. DOI: 10.5220/0010272800002309

in Bibtex Style

@conference{acir18,
author={Citra Hennida},
title={Should We Worry about China? China’s Outward FDI and Aid in Indonesia},
booktitle={Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,},
year={2018},
pages={38-46},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010272800002309},
isbn={978-989-758-493-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,
TI - Should We Worry about China? China’s Outward FDI and Aid in Indonesia
SN - 978-989-758-493-0
AU - Hennida C.
PY - 2018
SP - 38
EP - 46
DO - 10.5220/0010272800002309