INDONESIA-CHINA DEVELOPMENT FINANCING WITHIN THE SOUTH-SOUTH COOPERATION FRAMEWORK: STRENGTHENING NATIONAL INFRASTRUCTURE 2018–2022
DOI:
https://doi.org/10.33541/japs.v10i1.8430Keywords:
Development Financing, South-South Cooperation, Infrastructure, Liberal Interdependency, Indonesia-ChinaAbstract
This article examines the role of development financing through the South-South Cooperation (SSC) framework between Indonesia and China in strengthening infrastructure during the period 2018-2022. Using a qualitative-descriptive approach based in literature review, this study analyzes five major strategic projects, namely the Jakarta-Bandung High-Speed Railway, the Sumsel 8 Coal-Fired Power Plant, the Industrial Estate, port development, and toll road construction. The analytical framework includes development financing theory enriched by the liberal interdependence paradigm. The findings show that the institutional mechanism through the Implementation Arrangement between Ministry od National Development Planning (Bappenas), the relevant ministries, and China EXIM Bank provides a more efficient and targeted financing structure for priority projects. However, serious challenges have arisen regarding transparency, debt management, and China’s technical dominance in the project implementation process. This study concludes that this cooperation reflects an asymmetrical strategic interdependence, and its effectiveness is highly dependent on Indonesia’s institutional capacity and the sustainability of public governance. Recommendation include improving governance, diversifying funding sources, and enhancing technology transfer mechanism.
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