Politics

A third way for Indonesian foreign policy

On 19 February, US President Donald Trump and Indonesian President Prabowo Subianto met in Washington to sign the “Implementation of the Agreement Toward a New Golden Age for the US-Indonesian Alliance.” The term “alliance” sits uneasily with Indonesia’s law on foreign relations, which mandates a non-aligned foreign policy.

Under Prabowo, Indonesia is veering off course

The spark was a warning by the index provider MSCI over the “opacity” of shareholding structures, with a threat to downgrade Indonesia to the status of a frontier market. For investors this was a final straw after a year of increasing concerns over the Prabowo government’s fiscal and political record.

Chinese Australia Indonesia ties

Researchers discuss Chinese influence in Indonesia–Australia ties

Head of the Political Research Center (PRP) at the National Research and Innovation Agency (BRIN) said Indonesia and Australia, as middle powers, face similar challenges in navigating China’s growing economic, political, and military influence. This can directly impact security and defense policies, as well as regional stability.

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