The Belt and Road Initiative in Indonesia: Opportunities and Challenges

Septia Anes Dena


In October 3, 2013, President Xi Jinping put forward the idea of "building a maritime Silk Road in twenty-first Century" or recently popularly known as The One Belt One Road Initiative (“OBOR”) , and also labelled as Belt and Road (“B&R”) or Belt and Road Initiative (“BRI”) in Jakarta, Indonesia. This giant project is focusing on improving connectivity and cooperation among multiple countries. Over the past 5 years, China has signed the "one belt and one way" cooperation document with more than 150 countries and international organizations. A large number of cooperation projects have landed, which has effectively promoted the economic development and improvement of people's livelihood of all countries along the belt road.

The One Belt One Road Initiative (“OBOR”) are consist of two kind of route trade, the first is land-based trade called New Silk Road Economic Belt. President Xi Jinping firstly release this initiative concept when he was visiting Kazakhstan in 2013. The land-based trade is covering area starting from Xian, capital of Shanxi Province in central China, country in central Asia, Russia, until Germany. The other route will connect southern China to Singapore across the ASEAN mainland and another route starting from Central Asia to West Asia. So, this land-based trade route will connect China with Central Asia, West Asia, the Middle East and Europe (Jetin, 2017). The other trade route is sea-based route called 21st Century Maritime Silk Road. This sea route was developed as an effort to strengthen China's relations with South and Southeast Asia which focuses on maritime trade. This 21st Century Maritime Silk Road connects important ports in China with the South China Sea, Mediterranean Sea, Indian Ocean, Africa and Europe (Sharma & Kundu, 2016).

After agreeing to join the OBOR project with China government, the two sides have actively docked development strategies, deepened cooperation in an all-round way and achieved fruitful results. Although Sino Indonesian cooperation under the "belt and road" framework faces many challenges and problems, the governments and enterprises of both countries are making active efforts to create a good atmosphere for the "one belt and one road" docking with the "global maritime project" and the economic cooperation between the two countries.

In the other hand, even this collaboration project between Indonesia and China achieved a good result, but it is also creating opportunities and challenge for Indonesia because it intersects with Indonesia’s national interest itself. In this paper, the writer will try to describe and analyse the opportunities and challenge that Indonesia get from the big project of the Belt and Road Initiative.

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ISSN : 2251-1555