Indonesia's New President Makes Three Stunning Concessions to China

Indonesia’s new president, Prabowo Subianto, needed only three weeks in office to make three big concessions to China.

Indonesia has long rejected China’s nearby territorial assertions in the South China Sea, arguing that they have no basis under the United Nations Convention on the Law of the Sea. A 2016 Permanent Court of Arbitration ruling against China, which declared its claims illegitimate, became the basis for Indonesia’s campaign against the nine-dash line.

That hasn’t deterred China. Rejecting the ruling, Beijing has persisted in seeking recognition of its claims, particularly from Southeast Asian nations. For years, Indonesia’s diplomats have challenged Beijing, but now the Prabowo-Xi joint statement has sparked fears that this may change.

The Indonesian Ministry of Foreign Affairs later released a statement clarifying that Indonesia still did not recognise China’s nine-dash line. That won’t stop Beijing from using the joint statement as expressing Indonesia’s capitulation.

This has implications for Indonesia’s broader interests in the South China Sea disputes, including how Indonesia has framed itself as a non-claimant in the disputed waters.

As for Xinjiang, the joint statement affirmed it was an issue of ‘internal affairs of China’ and said that Indonesia ‘firmly supports China’s efforts to maintain development and stability in Xinjiang.’

While Indonesia has always recognised Beijing’s sovereignty over Xinjiang, the province has not previously been directly mentioned in a joint statement by the two countries. This contrasts with Jakarta’s solidarity with the Muslim world in opposing Israel’s war against Hamas in Gaza.

The joint statement seemed to present some new enthusiasm from Indonesia for China’s Global Security Initiative and Global Civilization Initiative, two of three major Chinese initiatives, the third being the Global Development Initiative, that present a Chinese vision of the international order. Indonesia has been willing to support the Global Development Initiative because of potential economic benefits. But it has been reluctant to endorse the other two initiatives due to their vagueness and a concern that doing so may undermine its non-aligned position in world affairs.

Overall, the joint statement reads as a turn towards China, particularly by diminishing the long-term efforts of Indonesian diplomats to preserve the sanctity of international maritime law. Not only does it harm Indonesia’s ability to counter to Chinese claims; it also affects the recently resolved maritime boundary dispute with Vietnam.

The shift is all the more demeaning for Indonesia because it closely followed a series of Chinese coast guard intrusions in late October, the same week Prabowo assumed the presidency.

It had always been apparent that the new Indonesian president, despite his strongman image and past criticism of his predecessor’s approach to the South China Sea, would deal with China cordially. Indonesia has security concerns about Chinese maritime claims, but Prabowo’s concessions was probably economically motivated. This motivation will continue to dominate, since Prabowo is aiming to achieve 8 percent annual economic growth. Indeed, the Beijing visit came with considerable pledges for economic cooperation on green energy and tech, amounting to US$10 billion.

But economic gain does not need to come at the cost of sovereignty. Past Indonesian administrations were able to get economic benefits from China and even the Soviet Union without sacrificing sovereignty.

The joint statement reflects poorly on Indonesia’s new non-career foreign minister, Sugiono. It was likely agreed upon without consulting senior foreign affairs officials. They have worked tirelessly to fight the proposition that China and Indonesia have overlapping claims in the South China Sea and to prevent Indonesia from embracing China’s vision of the international order and its narratives on Xinjiang. If they were consulted, then they were likely overruled.

These developments reflect the diminished role in foreign policymaking of the Ministry of Foreign Affairs under Prabowo’s leadership—a risk that we have identified in the past. Traditionally, the ministry has acted as a check on the ability of any single president to unilaterally direct Indonesia’s foreign policy away from its principle of non-alignment.

With the foreign minister now seemingly an extension of Prabowo, but the foreign affairs ministry likely to keep defending long-standing positions, the country’s foreign policy may start to look inconsistent.

Fitriani is a senior analyst and Gatra Priyandita is a senior analyst at ASPI.

This article appeared originally at The Strategist (ASPI).