Key facts
- Indonesia's 'resource nationalism' policy aims to control its raw material exports.
- This policy could strain the significant financial relationship between Indonesia and China.
- The focus is on critical minerals and raw materials, suggesting a potential impact on supply chains.
Indonesia's increasing emphasis on 'resource nationalism' poses a potential challenge to its deep financial ties with China. This policy shift, aimed at gaining greater control over the nation's valuable raw materials and critical minerals, could alter the landscape of investment and trade between the two countries.
As Indonesia seeks to maximize the value derived from its natural resources, it may implement stricter regulations on exports and foreign investment in its mining and resource sectors. This approach contrasts with previous dynamics where China has been a significant investor and a major buyer of Indonesian commodities. The success of this 'resource nationalism' strategy will likely depend on Indonesia's ability to manage these policy changes without alienating key economic partners like China, while also ensuring it benefits its own development goals.