US-China Competition Intensifies in Latin America: What About Indonesia?

The United States views China's growing influence in Latin America and the Caribbean as a "global threat" and is intensifying its competition with Beijing in the region. This situation has implications that cannot be ignored for Southeast Asian nations, including Indonesia. The U.S. government has unveiled strategies akin to a modern Monroe Doctrine and the formation of new security coalitions to prevent China from becoming a "dominant power" in the region. Economically, U.S. concerns are fueled by Chinese infrastructure investments, resource development engagement, and financial cooperation. Notably, the U.S. is increasing pressure regarding Chinese involvement in port operations around the Panama Canal, Peru's port development, Venezuela's oil industry, and the development of critical minerals like lithium in Argentina, Bolivia, and Mexico. Furthermore, in telecommunications infrastructure, particularly the deployment of 5G networks, the U.S. is pushing for the exclusion of Chinese companies. This demonstrates that the "strategic competition" between the U.S. and China spans a wide range of fields, including economics, resources, infrastructure, and security. While this U.S.-China competition is primarily playing out in Latin America, its impact on global supply chains, resource markets, and geopolitical power balance means it is not irrelevant to Southeast Asian countries like Indonesia. For instance, trends in resources secured by China in Latin America could affect Indonesia's resource exports. Moreover, the U.S.'s security enhancement measures could indirectly influence U.S. presence in Southeast Asia and the nature of regional security cooperation. Indonesia, while maintaining relations with both the U.S. and China, is pursuing a balanced diplomacy to maximize its national interests. However, the escalation of U.S.-China confrontation could increase situations where Indonesia is forced to make choices.