Indonesia is More Heavily Influenced by China in the Economic Sector

A Lowy Institute study shows that China's influence on several sectors in Indonesia is significantly greater than that of the United States.

Of the four sectors assessed, China dominates the economic sector, scoring 80 out of 100 points, compared to the US's 20 points. China also holds a significant influence in the diplomatic sector (53 points) and cultural influence (53 points), exceeding the US's scores of 47 points in both sectors.

However, the US dominates the defense sector, with an influence score of 55 points compared to China's 45 points.

The research team notes that China has made significant strides in its economic relations and defense networks within Indonesia over the past five years. While the US's diplomatic influence in Indonesia is higher than in other Southeast Asian countries, it remains lower than China's. The report suggests this might reflect greater diplomatic efforts by the US in Indonesia over the past five years, reflecting the country's regional interests.

This assessment of sectoral influence is part of the "Asia Power Snapshot: China and The United States in Southeast Asia 2023" research. The report incorporates scores from 2018 and utilizes a new methodology for in-depth analysis of the relative influence of these two superpowers in Southeast Asia.

The research methodology measures influence across four categories: economic relations, defense sector networks, diplomatic influence, and cultural influence, using at least 42 indicators. The Lowy Institute provides an example calculation:

* China's Influence: Chinese investment in Southeast Asia / (Chinese investment in Southeast Asia + US investment in Southeast Asia).

This calculation forms a component of the overall score.