3 - Chinese Investments in Indonesia: Ecological and Societal Impacts

The good relationship between Indonesia and China, which has been on the upward trend in the past decade, manifests crystal clear in the trade and investment sectors. China is now the second largest investor in Indonesia just behind Singapore. From a number of investments in Indonesia, the mining sector has contributed IDR 136.4 trillion in investment realization in 2022. Part of Indonesia’s appeal is the government’s focus on down streaming of mining products, which has attracted the attention of Chinese investors. Nonetheless, Chinese investments in Indonesia are reported to have problems especially related to environmental safeguards, workers' conditions, and economic impact on the region. 
            Against the backdrop of an analysis of the various polemics that have arisen in the implementation of China's Belt and Road Initiative (BRI) in Indonesia, this study focuses on outlining five crucial points. First, it describes the development of the Belt and Road Initiative in Indonesia. Second, it identifies the potential losses if Indonesia is too dependent on China. Third, the paper explains the poor governance of the Belt and Road Initiative in Indonesia. Fourth, it describes the lessons and criticisms of the Belt and Road Initiative in various countries, specifically developing countries whose conditions are relatively similar to Indonesia. Fifth, it examines the problems faced by the battery/EV production ecosystem in Indonesia in relation to investment from China.