Indonesia has just entered a new period of leadership led by Prabowo Subianto. This change of hands will also change many things, and diplomacy is no exception. Not even a month in office, there are several new breakthroughs that have been made. First, at the internal (national) level, the free meal program for students has been tested, and the most phenomenal is the “clean-up” effort where massive arrests of corruptors with hand-catching operations (OTT) as one of the efforts to eradicate the tradition of Corruption Collusion and Nepotism in Indonesia, which to date has been determined by the former deputy minister of trade of Indonesia in 2015-2016 as a suspect case of bribery, three Indonesian high prosecutors have also been arrested on charges of corruption, bribery, and abuse of office. Likewise, 10 suspected representatives in the Indonesian House of Representatives have been arrested in connection with online gambling cases.
Not only cleaning up the house, Prabowo is also more courageous in his foreign policies, which on the one hand are considered positive, on the other hand, the “neutral position of the Indonesian state” as mandated by the Five Precepts is questioned. This can be seen from the docking of Indonesia (democracy) with Russia (communism) which then plans to carry out joint military exercises in the near future. Especially in its economic policy, Indonesia officially declared itself joining the BRICs some time ago in Kazan, Russia through its representatives. Not only that, Iphone 16 was also banned for several reasons. The last two examples of economic policies will more or less affect Indonesia’s economy. This is a recent case in point.
- The Foundation of Indonesia’s Political Economy Diplomacy
Indonesia’s political economy diplomacy is rooted in its “free and active” foreign policy approach, which has been the cornerstone of the country’s international relations since independence. This approach aims to position Indonesia as an influential player in regional and global affairs while maintaining its autonomy and avoiding involvement in great power conflicts.
The foundation of Indonesia’s economic diplomacy rests on several pillars namely: Economic Growth and Development, Regional Leadership, Global Engagement, Investment Attractiveness and Trade Promotion, and Climate Change and Sustainable Development. In other words, Indonesia’s political economy diplomacy is essentially designed using a multifaceted approach that balances domestic economic priorities with aspirations for regional leadership and global engagement. By utilizing its strategic position, economic potential, and diplomatic capabilities, Indonesia aims to secure its national interests while contributing to regional stability and global economic development. But in reality how this idealized platform is carried out will follow who carries it (who is the leader).
- Indonesia’s Political Economic Diplomacy from President Soekarno to Jokowi
It is important to note that, like other democracies, a change of leader creates a new atmosphere, new programs, a new focus of work, and new people in the cabinet. Each leadership period has its own focus. During Soekarno’s time, Indonesia was still trying to stabilize its independence. After Soeharto stepped down, the next presidents (Bj. Habibi, Megawati, and Gusdur) focused more on taking care of the people in the country, which was a difficult transition period for Indonesia. It was only in the next leadership (Susilo Bambang Yudoyono) that Indonesia again played an active role at the international level with its foreign policy jargon “a million friends, 0 enemies” and it was also during SBY’s leadership that the big tsunami hit Aceh and the Helsinki MoU reached an agreement.
The evolution of Indonesia’s political economy diplomacy from President Soekarno to President Joko Widodo (Jokowi) reflects the country’s changing priorities and adaptation to the global economic landscape.
The Soekarno Era (1945-1967)
During Soekarno’s presidency, Indonesia’s economic diplomacy was characterized by a strong focus on anti-imperialism and non-alignment. Soekarno prioritized political independence and national identity over economic development. His foreign policy was characterized by a confrontational stance with Western powers and a shift towards closer ties with the Soviet Union and China. Economic diplomacy was not the main focus, as Soekarno’s revolutionary politics emphasized nation-building and ideological positioning on the global stage.
The Soeharto Era (1967-1998)
Under Soeharto’s New Order regime, there was a significant shift towards prioritizing economic development and attracting foreign investment. Indonesia moved closer to Western countries and international financial institutions. Soeharto’s economic diplomacy focused on economic stabilization, promotion of foreign investment, and involvement in regional economic cooperation through ASEAN. This period saw rapid economic growth but also increasing dependence on foreign capital and technology.
The B.J. Habibie Era (1998-1999)
Habibie’s short tenure focused on bringing Indonesia through the aftermath of the Asian Financial Crisis. His economic diplomacy aimed to rebuild international confidence in the Indonesian economy and initiate democratic reforms. Habibie sought to restore relations with international financial institutions and foreign investors while managing the country’s transition to democracy.
In the Abdurrahman Wahid (Gus Dur) Era (1999-2001)
Gus Dur’s presidency continued efforts to rebuild Indonesia’s international economic relations. His economic diplomacy emphasized Indonesia’s commitment to democratic reform and economic recovery. Gus Dur sought to balance relations between major countries and regional partners while addressing domestic economic challenges.
In the Megawati Sukarnoputri Era (2001-2004)
Megawati’s economic diplomacy focused on stabilizing the economy and attracting foreign investment. Her administration sought to improve Indonesia’s image abroad and strengthen economic ties with Western and Asian countries. Megawati also emphasized regional economic cooperation within ASEAN.
In the Susilo Bambang Yudhoyono Era (2004-2014)
Yudhoyono’s presidency marked a more active and balanced approach to economic diplomacy. His administration focused on positioning Indonesia as an emerging economic power and a key player in regional and global forums. Yudhoyono emphasized Indonesia’s role in the G20 and other international economic platforms, promoting the country as an attractive investment destination while balancing relations between major powers.
In the Joko Widodo (Jokowi) Era (2014-2024)
The Jokowi administration has placed a strong emphasis on economic diplomacy, directing that 70-80% of diplomatic resources should be allocated for this purpose. Under Jokowi’s leadership, Indonesia’s economic diplomacy has become more assertive and focused on promoting the country’s economic interests on the global stage while contributing to inclusive global economic growth.
- Between Beijing and Washington: Looking to the Future of Indonesia’s Economic Diplomacy Under the General’s Leadership
In reality, it is very difficult to position oneself and be ideal at all times. Prabowo’s policy of getting closer to communist countries certainly creates concerns about Indonesia’s relationship with the US, especially since Trump is just as crazy and brave in making policies related to communist countries. After all, China is Indonesia’s current strongest economic competitor which is still close (within the same continent). Likewise, Prabowo is also known to be bolder and not afraid of risks. From the point of view of Indonesia’s own foreign relations principle, which adheres to the principle of “neutral and impartial to certain blocs”, of course the direction and policies taken by Prabowo need to be taken into account, so as not to go too far. What else is related to the economy.
Prabowo administration will likely pursue a pragmatic approach, leveraging relations with China and the US to advance Indonesia’s economic interests while maintaining strategic autonomy. The challenge will be in navigating the rising tensions between these two powers, especially with Trump’s return to the White House. Prabowo’s personal diplomacy and Indonesia’s growing economic interests may provide an opportunity to play a more significant role in regional and global affairs, but this requires careful balance and strategic foresight.
