Indonesia's Balancing Act in Spotlight as Major Power Rivalry Intensifies

'Friends to all' approach has enabled the nation to hedge and pursue multi-alignment

- Arlina Arshad

JAKARTA - As China and the US vie for influence in South-east Asia amid tariff tensions, Indonesia — the region's largest economy and a key maritime power — has emerged as a central battleground in a high-stakes strategic contest.

In recent weeks, Beijing and Washington have explored deeper economic and military ties with Jakarta, seeking to bolster their presence in a strategically located nation that straddles key global maritime trade routes and serves as a buffer between rival blocs.

On April 16, US Secretary of State Marco Rubio met Indonesian Foreign Minister Sugiono in Washington, where they "discussed ways to deepen defence and security cooperation, including efforts to uphold freedom of navigation and overflight in the South China Sea in accordance with international law", the US State Department said in a statement.

Mr Sugiono was in the US with other Indonesian ministers as part of broader talks to reduce the trade imbalance and address the 32 per cent tariff on Indonesian exports imposed by US President Donald Trump's administration.

Back in November 2024, the US and Indonesian armies held staff talks in Hawaii. The talks belied more than a bilateral military engagement; they reflected the unity and common purpose of the US and Indonesian armies, the US Army said at the time.

Bloomberg reported that Indonesia is considering a multibillion-dollar purchase of US-made defence equipment, including fighter jets and munitions, as part of efforts to modernise its ageing military.

Five days after Mr Sugiono's US visit, Indonesia and China agreed on April 21 to strengthen cooperation in areas including disarmament, non-proliferation and arms control, following their first-ever 2+2 dialogue between foreign and defence ministers.

According to Indonesia's Foreign Ministry, the two sides also committed to enhancing coordination between the Indonesian Maritime Security Agency and the China Coast Guard.