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    Is Indonesia Positioning Itself Snugly Between the United States and China?

    ArtAppraiser asked for my thoughts on a New York Times article about the relationships Indonesia is forging with the United States and China. I have to admit I haven't been paying that much attention to politics and economics over here. There isn't much in-depth analysis in the English-language press and my friends are mostly fellow teachers, so we talk more about grammar and culture than geopolitical manuevering. But, for what's it's worth, I do have some thoughts. So, here they are! 

    On the ground here, Indonesia doesn't feel like a player, regional or worldwide because of a plethora of infrastructure problems and coupled with enormouse corruption issues. But obviously, with the population size and natural resources here, it definitely is--or could be. There were a few things that jumped out at me as I read the article.

    1. There are a lot of foreigners making a lot of money here. I mostly cross paths with the Westerners and Australians, but I imagine there are just as many Asians. There are loads of international schools here for Koreans, Japanese, Tawainese, and Chinese students, as well as from the West, meaning there are lots of parents living and working in Jakarta--diplomats and businesspeople alike.

    3. Wealthy and middle-class parents make sure their children learn English AND Mandarin, both in school and in after-school courses. They obviously see a benefit in being able to negotiate in both worlds.

    4. Consumerism in America has NOTHING on consumerism in Indonesia. While the government might be making noise about military equipment and joint exercises, it's all about trade. Indonesia needs consumer goods for the insatiable appetites of its citizens--clothing, electronics, and whatever else is for sale, Indonesians are buying. The U.S. is going to lose that battle.

    5. In my opinion, Indonesia has the building blocks to join the RICE countries in the new economic world order. They have to seriously address the corruption before that can happen--and honestly, I don't know how they will do it. But, if they manage it, the next obstacle is infrastructure. To get public transportation in Jakarta and better roads and clean water countrywide, Indonesia is going to need boatloads of money. The U.S. is going to lose that battle as well.

    6. Although China seems to have an edge in providing what Indonesia needs, the country has a colonial history to contend with that I think will preclude it from joining in any alliance where it sees itself being taken advantage of. I think it will be playing both sides for a long time to come. And, if India continues its rise, I look for Indonesia to form stronger ties there as well.  

    So, that's my take. I'm sure there are other people vastly more qualified than I am to look at all the pieces and make predictions. I do see that the journalist who wrote the article is a Canadian of Japanese ethnicity based in Japan. I think it would be interesting to contrast his analysis with something from one of the Indonesian papers, but my Indonesian language skills have progressed only far enough for me to make chit chat with taxi drivers and ask for directions. Sorry!

    P.S. Thanks for the link, AA. I probably would have missed it otherwise!

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    The peak oil book on Indonesia is that they had to leave OPEC in 1994 when it became clear they had become a net importer of oil. But they do have significant natural gas deposits.


    I'm sure that's true, because they are MASSIVE consumers. But there are still wells here. I think they drill it and then send it elsewhere to be refined. But there are still bunches of people working in the industry and living very well in Jakarta!


    My uncle traveled on business to Hong Kong perhaps fifteen years ago, and told us similar stories of seven-story malls, each floor two or three times the area of our largest suburban MD mall, crammed with goods and buyers. And, oh yeah, the streets were paved with krugerrands, too.


    Hmm. Well, the streets here are paved in litter. But the malls are beautiful consumer Disneylands. And, yeah, it's a good idea to wear your walking shoes! 


    Interesting. Sounds as if a sleeping giant is beginning to awaken.

    I read an article a few years back where the USAF sent a couple of squadrons over to India to play some air-to-air wargames. The IAF were one step ahead of the USAF all the way. Seems their pilots took their mission objecives dead serious to the point where they anticipated the USAF posture and neutralized their attack and countered with their own attack. It surprised the hell out of the US pilots...they weren't expecting a determined advasary. Of course, it was only a game and maybe the USAF was playing the IAF is see what tactics they employed...who knows..

    Then there's China flexing their military muscle, using their economic accupuncture on the global economy, and consolidating a solid manufacturing base to service their needs without assistance from the outside. And along with them are the smaller Asian countries with natural resources that can add to China's power.

    Finally, there's Australia...a huge behemonth of natural resources and talent that has yet to be nurtured, cultured and seasoned as a major global economic leader, but has the capability to respond to shifts in the demands of the global market place when terms are in their favor. Their turn at bat may just be around the corner.

    All three have the same thing in common...they've been overlooked for too long. Now that the rest of the world is passing their peaks and exhusting their natural resources, their time may be at hand.


    Interesting take on south Asia and Australia! I agree that India, Indonesia, and Australia largely get overlooked on the international scene when it comes to reporting in the American press--although I think the BBC does it's best to cover the entire world. Maybe it's an attention span thing: We Americans have a hard time concentrating on multiple issues at one time. Just look at how the wars have become basically a non-issue because the economy sucks. Even though the issues are obviously interrelated, we don't seem to care.


    I have to admit I haven't been paying that much attention to politics and economics over here.

    Hah!  I know what you mean.  I was reading some discussions about US-German relations recently, and I realized I had no clue about any of it.  I mean, I could you a fair amount about what I've observed about everyday German culture -- and in somewhat less detail about the politics of my local area.  My language skills are only barely at the point were I can read the newspapers!  But it's funny how you can be straddled between two worlds and still miss the big picture on how they connect.


    So true about the big picture. Even more so for me because the Indonesians that I most interact with are language learners as well, so we all lack a common language to have any sort of in-depth discussions. And the few that have the skills are teenagers, so they want to talk about Justin Beiber, not geopolitical strategies!  


    So, that's my take. I'm sure there are other people vastly more qualified than I am to look at all the pieces and make predictions.

    Well what you wrote was precisely what I was hoping to get! Maybe even more slong the lines of stream-of-consciousness reactions from the "gal on the street," wasn't looking for a white paper.

    Actually, I don't find rigorous debate or "he said, then she said" counterpoint analysis very useful...dichotomies, Manichaeism etc.--bleh, my brain does not work that way, just seems like a waste of time. Give me a relatively good analysis and then lots more input on it, not a courtroom case made by opposing advocates.

    Stuff like this is real observations my brain can really do something with: Consumerism in America has NOTHING on consumerism in Indonesia and There are a lot of foreigners making a lot of money here. They are generalizations the expert analysts don't dare blurt out in that way. Of course, I don't put all my trsut in one person's eyes, but taking observations like yours and mixing them with a lot of other things is so helpful! And adding the cavaets, the humility of admitting to not totally having your bearings ala "I might have this wrong, but this is what I am seeing," (like Paige also does in her comment,) that just makes it all the more useful.

    Thank you for taking the time to jot down some thoughts on it! I know how it is to be trying to get through each day in a totally different world, I don't know how you find time to blog at all.


    Thanks for the kind words. I am always happy to provide my opinion. But I think I've become quite sensitive to the fact that I don't speak for everyone or even anyone, save myself. It's a realization that has come with being very much in a minority and asked often about how Americans feel about this or that. 

    As for blogging, I definitely slowed down my output during my first months here. But now it's almost been a year (I can hardly believe it) and I feel very at home here. That, plus the fact that I only have to work 20 hours a week, means I have found the time to reengage! 


    Very interesting.  Thanks for writing, Orlando.  Two questions:

    4. Consumerism in America has NOTHING on consumerism in Indonesia. While the government might be making noise about military equipment and joint exercises, it's all about trade. Indonesia needs consumer goods for the insatiable appetites of its citizens--clothing, electronics, and whatever else is for sale, Indonesians are buying. The U.S. is going to lose that battle.

    Do you mean the battle to get those sales?

    5. In my opinion, Indonesia has the building blocks to join the RICE countries in the new economic world order. They have to seriously address the corruption before that can happen--and honestly, I don't know how they will do it. But, if they manage it, the next obstacle is infrastructure. To get public transportation in Jakarta and better roads and clean water countrywide, Indonesia is going to need boatloads of money. The U.S. is going to lose that battle as well.

    Which battle do you mean here?  The battle to earn interest off of loans for those infrastructure needs? 

     

     


    I do think that the U.S. is going to lose both battles you state, but what I meant from the first is the battle to be the main trade partner. It's our own fault. We left manufacturing to China and others many years ago.

    On the loans, I also meant the political influence that comes with being able to make large loans. China, and to some extent the other wealthier Asian neighbors (Japan has recently granted a big loan to build a central sewer system in Jakarta) have more cash to spread around. 


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