TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
China's infrastructure diplomacy in Indonesia
Sino-Indonesian relations are one of the best — if not the best — case study for infrastructure diplomacy today.
Change Size
President Joko Widodo (left) shakes hands with his Chinese counterpart Xi Jinping during the welcome ceremony for the Belt and Road Forum, at the International Conference Center in Yanqi Lake, north of Beijing, on May 15, 2017. (AFP Photo/Roman Pilipey/Pool)
A
s the lack of infrastructure is seen as a bottleneck for growth, nations throughout the world have made this their primary focus. The realization that developing countries face difficulties with this and need very much support has given rise to a new kind of diplomacy — infrastructure diplomacy.
Without doubt, Sino-Indonesian relations are one of the best — if not the best — case study for infrastructure diplomacy today. The former is a large economy seeking new markets, the latter a large economy with a huge infrastructure gap looking for financial support.
Fortunately for a China that is seeking new markets, other developing countries, too, are in dire need of financial support.
As many of these countries have turned to China to bridge their huge infrastructure gaps, China is increasingly seen as an infrastructure financer. But to limit the term to“infrastructurefinancing diplomacy” would be unwise, as China targets all four phases of infrastructure development — financing, planning, constructing and operating.
When it comes to financing, the Chinese economic prowess is largely unparalleled. A shortage of funds seems beyond worry, as institutions are established with the sole purpose of financing projects, including the Asian Infrastructure Investment Bank, BRICS’ New Development Bank and the Silk Road Fund.
Its financing capacity presents China with the opportunity to take part in a project’s planning process, even dictating and altering the design, making sure the project is in line with its own ambitions — notably the One Belt One Road mega-project.
This can be done by throwing great funds at a specific project, preventing or at least slowing down other projects that may be less advantageous to Chinese interests. When there are alternative options for implementing a project, excessively supporting one alternative will also make sure that other, less preferable alternatives are not chosen.
