Main Article Content
As China is strengthening its global position, it has gradually begun to exert its influence in the world economy. This can be observed in its move as investors to countries on the Asia and Africa continents, a position used to be dominated by western countries and institutions, as seen in the International Monetary Fund . However, China’s rising economy and influence have allowed itself to become an alternative source of funding for many countries formerly dependent on the International Monetary Fund, on other western related countries or on particular institutions due to the restrictions the loans carry. Countries such as Indonesia views China as an alternate source for their foreign direct investment, manifested in the construction of the Indonesian High Speed Rail project, the projects of Huawei, and in the Indonesian energy sector. China’s potency to enter into and expand in Indonesia is supported by the lack of restrictions towards the funding, if compared to the ones provided by western institutions. As a result, China has successfully presented itself as an alternate choice for many countries who wish to seek financial support to further their development.
This work is licensed under a Creative Commons Attribution 4.0 International License.
- Appiah-Kubi, S. N. K., Malec, K., Phiri, J., Maitah, M., Gebeltová, Z., Smutka, L., Blazek, V., Maitah, K., & Sirohi, J. (2021). Impact of tax incentives on foreign direct investment: Evidence from africa. Sustainability (Switzerland), 13(15). https://doi.org/10.3390/su13158661
- Bain, & Company. (2021). e-Conomy SEA Report 2021: Southeast Asia enters its “digital decade” as the internet economy is expected to reach US1 trillion in Gross Merchandise Value (GMV) by 2030. https://www.bain.com/about/media-center/press-releases/2021/sea-economy-report-2021/
- Deng, P. (2004). Outward investment by Chinese MNCs: Motivations and Implications. Business Horizons, 47(3), 8–16. https://doi.org/https://dx.doi.org/10.1016/S0007-6813(04)00023-0
- Gammeltoft, P., & Tarmidi, L. T. (2013). Chinese foreign direct investment in Indonesia: trends, drivers and impacts. International Journal of Technological Learning, Innovation and Development, 6(1/2), 136–160. https://doi.org/10.1504/IJTLID.2013.051701
- Guo, S., Zhao, H., & Zhao, H. (2017). The most economical mode of power supply for remote and less developed areas in China: Power grid extension or micro-grid? Sustainability (Switzerland), 9(6). https://doi.org/10.3390/su9060910
- Hansen, H., & Rand, J. (2006). On the Causal Links between FDI and Growth in Developing Countries. World Economy, 29(1), 21–41. https://doi.org/https://doi.org/10.1111/j.1467-9701.2006.00756.x
- Hennida, C. (2021). Should We Worry about China? China’s Outward FDI and Aid in Indonesia. Airlangga Conference on International Relations (ACIR 2018) - Politics, Economy, and Security in Changing Indo-Pacific Region, January 2018, 38–46. https://doi.org/10.5220/0010272800380046
- Hong, E., & Sun, L. (2006). Dynamics of internationalization and outward investment: Chinese Corporations’ Strategies. China Quarterly, 187, 610–634. https://doi.org/10.1017/S0305741006000403
- Jayanty, S. (2022). Huawei to Give Indonesia’s Digital Transformation a Boost. https://jakartaglobe.id/tech/huawei-to-give-indonesias-digital-transformation-a-boost
- Kok, R., & Ersoy, B. A. (2009). Analyses of FDI determinants in developing countries. International Journal of Social Economics, 36(1), 105–123. https://doi.org/10.1108/03068290910921226
- K.P.P.I.P. (2022). First Delivery Of The Jakarta Bandung High Speed Train Series To Indonesia | Portal Kementerian Luar Negeri Republik Indonesia. https://kemlu.go.id/portal/en/read/3913/berita/first-delivery-of-the-jakarta-bandung-high-speed-train-series-to-indonesia
- Leffel, B., & Acuto, M. (2018). Economic power foundations of cities in global governance. Global Society, 32(3), 281–301. https://doi.org/10.1080/13600826.2018.1433130
- Li, Y. (2018). China’s go out policy: A review on China’s promotion policy for outward foreign direct investment from a historical perspective. In Non-European emerging-market multinational enterprises in East Central Europe (Issue 244).
- Liu, H., & Lim, G. (2023). When the state goes transnational: The political economy of China’s engagement with Indonesia. Competition and Change, 27(2), 402–421. https://doi.org/10.1177/10245294221103069
- Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45(2010), 68–79. https://doi.org/10.1016/j.jwb.2009.04.003
- MoFA. (2022). First Delivery Of The Jakarta Bandung High Speed Train Series To Indonesia | Portal Kementerian Luar Negeri Republik Indonesia. https://kemlu.go.id/portal/en/read/3913/berita/first-delivery-of-the-jakarta-bandung-high-speed-train-series-to-indonesia
- Mori, A. (2021). China’s carbon-energy policy and Asia’s energy transition from carbon leakage, relocation, and halo perspectives. In China’s Carbon-Energy Policy and Asia’s Energy Transition (pp. 279–288). https://doi.org/10.4324/9781003190905-17
- Negara, S. D., & Suryadinata, L. (2018). Indonesia and China’s Belt and Road Initiatives: Perspectives, Issues and Prospects. In Trends in Southeast Asia. ISEAS Publishing. https://doi.org/10.1355/9789814818605-002
- O.E.C.D. (2022). Foreign Direct Investment (FDI). https://www.oecd-ilibrary.org/finance-and-investment/foreign-direct-investment-fdi/indicator-group/english_9a523b18-en
- Priyandita, G., van der Kley, D., & Herscovitch, B. (2022). Localization and China’s Tech Success in Indonesia (Issue July). Carnegie Endowment for International Peace.
- Purba, A., & Purba, J. T. (2020). Jakarta-Bandung High-Speed rail transportation project: facts and challenges. IOP Conference Series: Materials Science and Engineering, 918(1), 1–9. https://doi.org/10.1088/1757-899X/918/1/012034
- Rakhmat, Z. (2022). China’s Digital Silk Road in Indonesia: Progress and implications. In LSE IDEAS Strategic Update (Issue July).
- Suryadinata, L. (2017). The Growing “Strategic Partnership” between Indonesia and China Faces Difficult Challenges. In Trends in Southeast Asia. ISEAS Publishing.
- Taufiqurrahman, M. (2022). Huawei pivots to Asia Pacific with greater investment in talent, cloud technology. https://www.thejakartapost.com/business/2022/05/22/huawei-pivots-to-asia-pacific-with-greater-investment-in-talent-cloud-technology.html
- Thorhauge, A. M. (2020). The Steam Platform Economy: Capitalising from Player-Driven Economies on the Internet. AoIR Selected Papers of Internet Research, October. https://doi.org/10.5210/spir.v2020i0.11346
- Tiezzi, S. (2014). China urges companies to ‘Go global. https://thediplomat.com/2014/12/china-urges-companies-to-go-global/
- Wang, Y. (2013). Fiscal decentralization, endogenous policies, and foreign direct investment: Theory and evidence from China and India. Journal of Development Economics, 103(1), 107–123. https://doi.org/10.1016/j.jdeveco.2013.01.006
- Yu, X., & Li, Y. (2020). Effect of environmental regulation policy tools on the quality of foreign direct investment: An empirical study of China. Journal of Cleaner Production, 270. https://doi.org/10.1016/j.jclepro.2020.122346
- Zhou, L., & Leung, D. (2015). China’s overseas investments, explained in 10 graphics. https://www.wri.org/insights/chinas-overseas-investments-explained-10-graphics#:~:text=China%20Goes%20Global%3A%20Bank%20Lending&text=These%20banks%20increasingly%20support%20Chinese,their%20funding%20from%20Chinese%20banks
- Zhu, S., & Ye, A. (2018). Does the impact of China’s Outward Foreign Direct Investment on reverse green technology process differ across countries? Sustainability (Switzerland), 10(11). https://doi.org/10.3390/su10113841
- Zimnoch, K. (2016). Capital accumulation in a region. Cooperatives versus foreign direct investments. Engineering Management in Production and Services, 8(3), 15–24. https://doi.org/10.1515/emj-2016-0020