Indonesia, Growing Shadow of China from Vaccines to 5G

Western Countries Hesitant About 'Digital Silk Road' Cooperation
ICT Acquisition... Divergent Goals in Securing Overseas Markets

The image of the novel coronavirus disease (COVID-19) vaccine developed by China's Sinovac, which began administration in Indonesia from the 15th. [Image source=Yonhap News]

[Asia Economy Jakarta Correspondent Sujin Choi] Indonesia's cooperation with China is expanding comprehensively. As Indonesia has started administering Chinese-made COVID-19 vaccines, it has also agreed to cooperate in the 5th generation (5G) sector. While this reflects aligned interests between the two countries, concerns are also emerging about Indonesia's deepening dependence on China.

◇Participating in the ‘Digital Silk Road’ boycotted by Western countries= Earlier this month, Wang Yi, China's Foreign Minister, visited four Southeast Asian countries and confirmed cooperation with Indonesia on 5G network development. The Digital Belt and Road Initiative project, involving Chinese telecom company Huawei, is a project to build 5G, optical communication networks, and AI surveillance systems primarily in Third World countries, also known as the ‘Digital Silk Road.’ Huawei has invested approximately $600 million to date in building 5G networks. However, Western countries such as the United States, Australia, New Zealand, the United Kingdom, and Canada have turned away from Huawei's 5G network equipment citing national security concerns. France and Japan have also indirectly banned technological cooperation with Huawei.

In this context, Indonesia's expansion of the Digital Silk Road project with Huawei is noteworthy. Last year, Huawei established a cooperative framework with Indonesia's Agency for the Assessment and Application of Technology (BPPT). The cooperation between the administration of Indonesian President Joko Widodo and Huawei covers three areas: artificial intelligence, cloud computing, and 5G networks.

Through this cooperation, Indonesia expects to acquire ICT skills from Huawei, foster human resources, and bridge the digital divide. Huawei has also promised to build 5G network infrastructure across the approximately 6,000 inhabited islands out of Indonesia's more than 17,000 islands. In return, China secures Indonesia?a market with the sixth-largest number of internet users in the world.

◇Over 80% of the economy already controlled by Chinese Indonesians= However, there are growing concerns domestically about Indonesia's increasing dependence on China. Chinese Indonesians, who make up only about 4% of the total population, already control 80% of the economy. Based on this economic power, they also exert significant political influence.

There are also voices worried about the possibility of government surveillance of opposition parties. Chinese companies could cooperate with the Indonesian government by developing surveillance functions targeting dissidents and opposition parties. In fact, Indonesia has signed a memorandum of understanding to strengthen cooperation with China on internet security technology, marking the first case of cooperation between China and a foreign country in this area.

This content was produced with the assistance of AI translation services.