The real message Indonesia’s Prabowo Subianto delivered to China’s Li Qiang
The Interpreter, Lowy Institute
“It’s no secret that Prabowo has shown admiration for the United States, especially President Donald Trump. He’s openly expressed a desire to meet with him. At the same time, Prabowo knows that China holds the economic keys to many of his domestic promises. The two countries signed a host of agreements during Li’s visit, including a $3 billion ‘twin industrial park’ initiative linking Fujian and Central Java — expected to create more than 100,000 jobs. It’s a major pillar of Prabowo’s plan to accelerate manufacturing and infrastructure growth.”
“Other agreements signed last week included memoranda of understanding in public health, tourism, finance and currency cooperation. Notably, Indonesia’s central bank and the People’s Bank of China agreed to promote trade in local currencies, part of Beijing’s broader effort to erode the US dollar’s dominance.”
“Still, ambiguity has a shelf life. The more Indonesia deepens economic and security cooperation with both sides, the more pressure it will face to show its hand. For now, the ambiguity works – it keeps Chinese capital flowing, American jets flying in joint military exercises, and Indonesian officials welcome in every capital. But that equilibrium is precarious.”