China’s $4.4 Billion Bet on Indonesia’s New Capital: A Threat to Sovereignty and Security

China’s $4.4 billion investment in Indonesia’s new capital, Nusantara, raises major concerns. This project includes a 138.6 km multi-utility tunnel, supposedly for power and fiber optics. However, this “investment” is a clear attempt to expand China‘s control over Indonesia’s critical infrastructure, data, and economy. While marketed as progress, it poses grave risks to Indonesia’s sovereignty and security.

China’s Strategic Interests in Nusantara

China’s involvement in Nusantara’s infrastructure is not just about economic growth. Beijing has a history of using investments as leverage over other nations. This multi-utility tunnel could give China direct access to Indonesia’s power grid and sensitive communication networks.

Such control raises national security concerns. If China gains influence over Indonesia’s energy supply and data infrastructure, it could manipulate operations, disrupt services, or pressure Indonesia politically. This strategy mirrors China’s actions in Africa, Sri Lanka, and Southeast Asia, where its projects led to debt dependence and economic blackmail.

By allowing China to control such a vital project, Indonesia risks becoming a puppet state in Beijing’s expansionist agenda.

Economic Dependency and Sovereignty Risks

China’s investment model traps countries in economic dependence. Chinese state-backed companies dominate Indonesia’s key industries, from nickel mining to digital infrastructure. Beijing floods Indonesia with loans, then tightens its grip by imposing financial and political demands.

With China funding Nusantara’s infrastructure, Indonesia risks falling into Beijing’s debt-trap diplomacy. In countries like Sri Lanka and Zambia, Chinese loans led to foreign asset seizures and loss of sovereignty. Indonesia must avoid the same fate by ensuring it does not become financially reliant on Beijing.

A self-sufficient Indonesia is a strong Indonesia. Jakarta must prioritize domestic and ASEAN partnerships over China’s exploitative deals.

Environmental and Social Concerns

Chinese investments in Indonesia’s mining and industrial sectors have already caused serious environmental damage. Chinese-run nickel smelters rely heavily on coal, worsening Indonesia’s carbon footprint and harming local ecosystems.

Communities near Chinese-backed projects have suffered displacement, deforestation, and water pollution. With Nusantara being developed from scratch, China’s involvement could repeat these mistakes on a massive scale.

China’s poor labor practices also create concerns. In other projects, Chinese firms have imported their own workers instead of hiring local Indonesians. If the same happens in Nusantara, Indonesia will lose job opportunities while China profits from its own workforce.

The Indonesian government must enforce strict regulations to prevent Nusantara from becoming another Chinese-controlled industrial zone.

China’s Track Record: A Warning for Indonesia

China has used its economic influence to control weaker nations. In Sri Lanka, a Chinese-funded port was seized when Sri Lanka failed to repay its debt. In Zambia, Beijing took control of key infrastructure, including power plants.

Indonesia must learn from these mistakes. Allowing China to finance, construct, and control critical infrastructure will only weaken Indonesia’s economic and political independence.

China does not invest to help—it invests to dominate. Jakarta must resist these deceptive deals before it becomes another victim of China’s economic colonization.

Indonesia Must Reject China’s Exploitative Investments

China’s $4.4 billion investment in Nusantara is not about progress—it’s about control. If Indonesia allows China to dominate its energy, technology, and infrastructure, it will lose its sovereignty and become economically dependent on Beijing.

Indonesia must reject exploitative Chinese investments and prioritize partnerships that respect its independence. Nusantara should be a symbol of Indonesia’s future, not a trophy for China’s global expansion.

Jakarta has a choice—protect Indonesia’s sovereignty or surrender to Beijing’s influence. The future of Nusantara depends on choosing national strength over foreign control.