Indonesia and ASEAN Chairmanship in 2023: Leading the Region in Strengthening Relations with China

Abstract

Indonesia, the largest economy in Southeast Asia, plays a crucial role in the region and contributes significantly to the regional bloc's stability, economic growth, and diplomatic initiatives. The archipelago serves as a pivotal anchor within the Association of Southeast Asian Nations (ASEAN), stipulating political leadership and strategic direction over the years. Indonesia fosters trade and investment within the region, as seen from Indonesia's role in completing the Regional Comprehensive Economic Partnership (RCEP) negotiation, the largest free trade agreement in the world involving ASEAN and several trading partners such as China, Japan and South Korea (The ASEAN Secretariat, 2023). Indonesia promotes dialogue and cooperation to address regional challenges such as trans-boundary issues, security concerns, and environmental sustainability. Indonesia is also currently one of China’s most important partners in Southeast Asia. China is now Indonesia's largest trading partner and export market, with China's official data showing that in 2022 the bilateral trade reached $149.1 billion, up 19.8 percent year-on-year. In the same year, China was the second-largest source of investment in Indonesia in 2022, with $8.2 billion (Duqiang, 2023). In addition, China's Belt and Road Initiative (BRI) has played a major role in supporting infrastructure development in Indonesia. Both nations continue to engage in high-level diplomatic dialogue and seek common ground on various regional and global issues. This article attempts to show the role that Indonesia plays as it continues to show the way for other ASEAN countries to navigate economic challenges and, at the same time, forge stronger ties with China. This article also examines the bilateral relationship between Indonesia and China and how it affects Indonesia’s capability to lead other ASEAN countries, especially after Indonesia’s ASEAN Chairmanship in 2023.