Indonesia's Luhut Pandjaitan Dismisses China-Bias in Airport Row, Stresses National Interest & Economic Growth

Luhut Pandjaitan Defends Indonesia's China Ties Amidst Airport Controversy

Indonesia's political landscape is abuzz as former coordinating maritime affairs and investment minister, Luhut Pandjaitan, has strongly refuted allegations of preferential treatment towards Chinese companies. These claims have emerged amidst a contentious dispute concerning a major industrial cluster's airport, which critics fear could evolve into a "state within a state."

Strategic Partnership: China's Role in Indonesia's Economy

Pandjaitan, a pivotal figure behind former President Joko Widodo's ambitious mineral downstreaming strategy, staunchly defended the nation's partnership with China. He highlighted China's unparalleled technological capabilities and substantial financial resources as crucial for advancing Indonesia's economy. In contrast, he noted the historical reluctance of other nations, such as the United States, to provide both financing and essential expertise to Jakarta for significant developmental projects.

"At that time, China was the only one prepared to step forward," Pandjaitan stated, underscoring the pragmatic decision-making driving these collaborations. He firmly asserted Indonesia's independent stance: "We do not align ourselves with China or the United States; our allegiance is solely with Indonesia."

Downstreaming Success and Global Tech Gaps

Pandjaitan attributed much of the country's projected gross domestic product growth—estimated between 4.9 and 5.7 percent for the upcoming year—to the success of the mineral downstreaming policy. This strategy focuses on domestically processing critical minerals, adding significant value before export.

He further elaborated on the technological gap, citing a discussion with Tesla CEO Elon Musk, where it was reportedly acknowledged that the U.S. currently lags significantly behind China in the necessary technological capacity for such downstreaming initiatives. This perspective was reportedly shared in The Jakarta Post.

The former minister's comments aim to clarify Indonesia's strategic economic choices, emphasizing national interest and economic empowerment over geopolitical alignment.