A new American financial group will invest billions of dollars in Indonesia, thus counteracting the growing economic influence of the Chinese regime in the region.
The International Development Finance Corporation (DFC) will initially invest $5 billion in infrastructure, according to Reuters.
DFC Executive Director Adam Boehler said on Jan. 10 that he would discuss the agreements with the country’s leaders over the next two months and that they could exceed “tens of billions” of dollars.
Chinese regime investments
The Chinese communist regime is implementing the Belt and Road Initiative (BRI), an ambitious program involving Beijing’s investment and trade links with some 65 countries, which together cover two-thirds of the world’s population.
This program, also known as the Silk Road and Belt Initiative, has generated much unrest and suspicion among the participating nations, causing some to halt the projects.
This was the case with the railway projects in Indonesia, Malaysia, and Thailand.
Malaysian Prime Minister Mahathir bin Mohamad has called the initiative “a new version of colonialism,” according to Foreign Affairs.
Similarly, Beijing is accused of practicing “debt-trap diplomacy,” using the BRI to commit its partners to huge debts that would force them to pay large amounts of interest.
Similarly, U.S. Secretary of State Mike Pompeo referred to the BRI as a Chinese attempt to buy an “empire.”
Investment needs in Indonesia
In Indonesia, a substantial increase in infrastructure investment would improve productivity.
It would also reduce logistics costs, which is difficult in such a large archipelago as this country, according to Indonesian media Katadata.co.id
Infrastructure is required to make basic social services such as sanitation, drinking water, health, and education accessible to the entire population.
President of the Republic of Indonesia Joko Widodo actively seeks foreign investment in the country, especially in priority sectors.
Japan responded positively to this, and in fact, Japanese Foreign Minister Motegi Toshimitshu visited Widodo on Jan. 10 in the capital Jakarta.
Japan would invest billions of dollars in fisheries infrastructure, also balancing the large investments of the Chinese communist regime in the region, according to DW.
The Chinese regime’s unbalanced economic influence in Indonesia is reflected in the latter’s trade deficit, which reached $1.8 billion in July 2019.[Link from the author of the photo: Lommes and from the license]