CSIS Indonesia this week released a new report arguing that Indonesia is pursuing a calibrated form of economic security that manages concentrated dependencies without abandoning its tradition of openness or resorting to autarky.
The report states that The rise of weaponised interdependence by great powers means Indonesia must treat strategic diversification as a deliberate foreign policy tool rather than an incidental outcome of trade relations.
The report states:
Much of the anxiety over the past decade has centred on how great powers have shown a growing willingness to politicise economic relationships, using market access, investment, and supply chain position as instruments of foreign policy pressure. Scholars of international political economy have a term for this: weaponised interdependence. The concept describes how global networks, financial systems, supply chains, and digital infrastructure create chokepoints that dominant states can exploit for strategic ends. What was once framed as mutual gain becomes an instrument of coercion.
Read the full report: Strategic diversification as Indonesia’s foreign economic policy