Securing Indonesia: A key piece of America’s Indo-Pacific strategy

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Securing Indonesia: A key piece of America’s Indo-Pacific strategy

From the recent Shangri-La Dialogue in Singapore, it is clear that the United State is moving ahead to stop China’s  influence in the Indo-Pacific region. 

With U.S. backing, Philippines President Ferdinand “Bongbong” Marcos said Filipinos won’t give in to China’s pressure. They also explored plans to make strong collaboration with Japan and South Korea.Furthermore, both nations, US and China are facing each other again to avoid any accidental conflicts. 

But there’s a catch: U.S. Indo-Pacific policy still has many inconsistencies. If not fixed, they could push our friends to stay neutral and push away potential partners. This is especially risky with Indonesia.

It is important to go back to earlier this year and come to know what happened in Indonesia. After this one can better understand why it is important  to pay attention to a nation that few in the West really think about. The current Indonesia defense minister, Prabowo Subianto, won the Presidential election with more than 96 million votes. 

This appreciating win should be the reason for the strong relationship between the second and third largest democracies in the world. This is especially important at a time when China is trying hard to convince countries in the global south that Western-style democracy doesn’t fit their path to economic progress.

Holding elections is not the basic reason that makes a country to be a friend of the United States. Well, Indonesia really knows how to follow the international rules. During the meeting between Joe Biden and President Joko Widodo  in November 2023, they both called on Russia to completely leave Ukraine.

But Prabowo, in his Shangri-La speech, said Indonesia’s stance on Gaza follows the same international rules. He pointed out some important messages: US interests in Asia get help through Indonesia’s principled foreign policy. It is done by a rules-based order.

It is important to follow some rules to make a strong partnership with Indonesia. Democrats and Republicans should focus more on what Indonesia cares about. Indonesia has a population of 30 million people with a majority of Muslims community. THis nation is set to be a top global economy by 2050. In Southeast Asia, it’s a key country that can swing influence.

In order to improve relations it is important for the United States to focus on trade. But sadly, Biden’s policies risk pushing Indonesia towards other competitors. The Inflation Reduction Act (IRA), for example, gives tax breaks to American manufacturers who use minerals from the U.S. or countries with free trade deals. 

This shuts out Indonesia, which has suggested a small trade deal just for critical minerals. But the U.S. hasn’t moved quickly on this idea.

This case is the same as shooting yourself in the foot twice. The US not only misses the chance to work with nations that assist to boost its economy but also cut off from the supply chain it requires to initialize its own electric car platform. Nickel is the basic requirement for electric cars. Fortunately Indonesia has the most of Nickel in the world.  By 2030, Indonesia will supply 65% of the world’s nickel, and it wants partners to help it make more valuable products. 

The United States has the best opportunity to take this chance. It can easily process material from Indonesia. With it, Americans can buy eclectic vehicles that are made in the United States. 

With all of this the US also needs more steps to follow to make a strong partnership with Indonesia. According to China, it has the right to land that other countries also say is theirs, like in Japan, the Philippines, Vietnam, and Malaysia.

It is best for the United States to make more and more investment in  the Maritime Security Cooperation plan with Indonesia. This will be good for Indonesia to protect its  vast maritime territory. Once Indonesia becomes more and more stronger, it benefits the United State  Indo-Pacific strategy by safeguarding the Malacca Strait and supporting Australia.

Additionally, the United State also requires consistent policies in the Indo-Pacific region. It maintains and strengthens the crucial alliance. So, for the US it is beneficial both economically and strategically to collaborate  with the world’s 2nd largest democratic nation. 

Research Staff

Research Staff

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