{"title":"The Indonesian state and the strategic use of foreign capital","authors":"J. Guild","doi":"10.1080/09512748.2023.2200028","DOIUrl":null,"url":null,"abstract":"Abstract Indonesia is a net debtor country, meaning typically more investment flows into Indonesia than goes out. This is an important driver of growth, but can also create strategic and economic liabilities as foreign creditors establish claims on Indonesian assets. This paper uses the concept of defensive economic statecraft to explain how the Indonesian state has taken actions to mitigate these vulnerabilities by deepening domestic capital markets, accumulating foreign exchange reserves, intermediating inflows through SOEs and forcing investment into strategic sectors. Although foreign investment involves risks and trade-offs, this paper analyzes some of the mechanisms by which net debtor countries like Indonesia can mitigate such risks.","PeriodicalId":51541,"journal":{"name":"Pacific Review","volume":null,"pages":null},"PeriodicalIF":2.3000,"publicationDate":"2023-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Pacific Review","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1080/09512748.2023.2200028","RegionNum":2,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 3
Abstract
Abstract Indonesia is a net debtor country, meaning typically more investment flows into Indonesia than goes out. This is an important driver of growth, but can also create strategic and economic liabilities as foreign creditors establish claims on Indonesian assets. This paper uses the concept of defensive economic statecraft to explain how the Indonesian state has taken actions to mitigate these vulnerabilities by deepening domestic capital markets, accumulating foreign exchange reserves, intermediating inflows through SOEs and forcing investment into strategic sectors. Although foreign investment involves risks and trade-offs, this paper analyzes some of the mechanisms by which net debtor countries like Indonesia can mitigate such risks.
期刊介绍：
The Pacific Review provides a major platform for the study of the domestic policy making and international interaction of the countries of the Pacific Basin. Its primary focus is on politics and international relations in the broadest definitions of the terms, allowing for contributions on domestic and foreign politics, economic change and interactions, business and industrial policies, military strategy and cultural issues. The Pacific Review aims to be global in perspective, and while it carries many papers on domestic issues, seeks to explore the linkages between national, regional and global levels of analyses.
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