Revisiting the Belt and Road Initiative in Indonesia: Progress, Challenges, and Prospects

• Published in: ASEAN economic bulletin 2024-04, Vol.41 (1), p.28-46
• Main Author: Negara, Siwage Dharma
• Format: Article
• Language: English
• Subjects: Alliances; Case studies; Central government; Coal-fired power plants; Community; Conflicts of interest; Cooperation; Diplomacy; Electricity; Environmental impact; Environmental law; Financial sustainability; Infrastructure; Infrastructure (Economics); Investors; NGOs; Nongovernmental organizations; Presidents; Prospects; Public finance; Regulation; State visits; Sustainability; Trade surplus; Xi Jinping
• ISSN: 2339-5095; 2339-5206
• DOI: 10.1355/ae41-1c

This paper provides an update on the BRI projects in Indonesia. It discusses the progress and challenges of China’s outbound investment and infrastructure projects under the Initiative and outlines how perceptions about the BRI have evolved in Indonesia. Moreover, some case studies highlight the issues and problems associated with BRI implementation, along with future prospects and necessary readjustments. It is argued that, by learning from previous projects, the government should create a clear legal and institutional framework to improve future BRI projects. The state should rigorously assess the viability and financial sustainability of the projects. Furthermore, proper environmental and ecological assessments by independent parties are critical to prevent conflict of interest. The central government authorities should work with various stakeholders, including NGOs and local communities, to address the issues they face. Finally, stricter regulations should be in place for the Indonesian government and Chinese investors to comply with, in order to ensure that locals also benefit from the projects.