Published July 25, 2025 | Version v1

CHINAS ECONOMIC RISE: STRATEGIC LESSONS FOR INDONESIA IN A GLOBAL CONTEXT

Authors/Creators

  • 1. Lecturer of Institut Maritim Prasetiya Mandiri, Bandar Lampung, Indonesia.

Description

Chinas transformation into a global economic powerhouse since 1978 offers a model for developing nations like Indonesia. This study examines Chinas strategies, Special Economic Zones (SEZs), the Belt and Road Initiative (BRI), technological innovation, and trade liberalization, through the lenses of dependency theory and endogenous growth theory, assessing their applicability to Indonesia. Using a mixed-methods approach with data from the World Bank, IMF, and Indonesias BPS (2019 - 2025), the research identifies drivers of Chinas success (e.g., 9.5% annual GDP growth, 1978 - 1990) and challenges (e.g., Gini coefficient of 0.47). For Indonesia, adopting nickel downstreaming, increasing R&D to 1% of GDP, and diversifying trade can enhance economic sovereignty. Risks, including 15 billion BRI debt, environmental degradation (10,000 hectares deforested), and corruption (20% of budgets), require mitigation through local participation, ESG standards, and digital governance. Comparative case studies (Indonesias nickel downstreaming, Jakarta Bandung High-Speed Rail, Malaysias ECRL, Vietnams FDI model) highlight practical applications. Recommendations include ASEAN-led multilateralism, transparent procurement, and sustainable policies to ensure inclusive growth in a multipolar world.

 

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