China’s Green Investments in Indonesia: Hidden Risks to Economy

China’s Green Investments in Indonesia: A Trojan Horse for Economic and Environmental Risks

Green investments with China in Indonesia come with serious risks. While Beijing promotes energy transition, its control over resources threatens Indonesia’s sovereignty, economy, and environment.

China’s green investments in Indonesia: China Tightens Its Grip on Indonesia’s Nickel Industry

Chinese firms control 75% of Indonesia’s nickel refining capacity, dominating a crucial industry. This control limits Indonesia’s influence over pricing and supply chains.

Beijing’s dominance gives China geopolitical leverage, reducing Indonesia’s ability to negotiate fair deals. Chinese companies dictate industry terms while Indonesia risks economic dependency.

Nickel exports fuel Indonesia’s economy, but reliance on China exposes Indonesia to foreign exploitation. Without diversification, Indonesia becomes vulnerable to China’s economic influence.

Chinese “Green Investments” Hide Environmental Destruction

China brands its investments as green, but the reality is different. Many projects use coal power, contradicting Indonesia’s climate goals.

Chinese-backed nickel processing relies heavily on coal-fired power, worsening Indonesia’s carbon footprint. These projects destroy forests, pollute rivers, and displace local communities.

Reports show Chinese investors ignore environmental standards while promising sustainability. Indonesia must enforce stricter environmental regulations to avoid long-term damage.

Economic and Geopolitical Risks of Deepening Ties with China

Indonesia increasingly depends on Chinese investments in critical sectors. This reliance weakens Indonesia’s bargaining power and economic independence.

China uses economic leverage to pressure smaller nations. Indonesia risks losing policy control if dependency deepens.

Chinese loans and infrastructure deals often lead to debt traps. It’s crucial that Indonesia diversify foreign investments to protect its sovereignty.

 Indonesia Must Reconsider Its Relationship with China

Indonesia cannot afford to be overdependent on China. The government must strengthen domestic industries and seek diverse investment sources.

Without action, China’s growing influence threatens Indonesia’s economy, environment, and future independence. Indonesia must protect its resources, sovereignty, and people from foreign exploitation.