NAVIGATING US-CHINA TECHNOLOGY COMPETITION: AN INDONESIAN PERSPECTIVE

The report examines how the rivalry between the US and China in the technological domain threatens Indonesia's economic growth and national security. It highlights vulnerabilities in investment flows, market access for electronics and critical minerals, and risks related to cyber-espionage and technological interoperability. The authors argue that Indonesia's current regulatory and institutional framework is inadequate, as it fails to integrate geopolitical and security considerations into its technology strategies. To address these gaps, the report recommends investing in national tech champions, formulating domestic technological norms, and establishing a dedicated office for critical minerals, emerging technologies, and cybersecurity.

• US-China technology competition poses significant risks to Indonesia, potentially undermining trade relationships, disrupting foreign investment, and exposing the economy to economic cyber-espionage.
• Indonesia is experiencing a shift in investment flows where US investment is increasing in information services and software development, while Chinese investment remains dominant in computer, electronics, and optical industries.
• Indonesia's access to the US market for technology exports is vulnerable because the country lacks a comprehensive map of its supply chain dependencies on China and does not have a free trade agreement with the US.
• There is a growing risk of technological incompatibility and eroding trust in cyber cooperation, with economic cyber-espionage cases in Southeast Asia, including Indonesia, rising from 3.6% in 2014 to 15.4% in 2020.
• Indonesia's regulatory framework is inadequate for managing tech competition because it separates security and economic considerations, with national security inconsistently integrated into digital and electronics regulations.
• Institutional capacity to handle tech competition is limited by a lack of dedicated structural positions in the Ministry of Foreign Affairs and insufficient budgets for agencies like the National Cyber and Encryption Agency (BSSN).

APA

Habib, M., & Priyandita, G. (2024). NAVIGATING US-CHINA TECHNOLOGY COMPETITION: AN INDONESIAN PERSPECTIVE. Peace Research Institute Oslo. https://cdn.cloud.prio.org/files/67699131-be26-43d2-b377-162338326e00/CSIS_Research_Report_2024_Navigating_the_US-China_Technology_Competition_-_Indonesian_Perspe.pdf?inline=true

Chicago

Habib, Muhammad, and Gatra Priyandita. NAVIGATING US-CHINA TECHNOLOGY COMPETITION: AN INDONESIAN PERSPECTIVE. Peace Research Institute Oslo, 2024. https://cdn.cloud.prio.org/files/67699131-be26-43d2-b377-162338326e00/CSIS_Research_Report_2024_Navigating_the_US-China_Technology_Competition_-_Indonesian_Perspe.pdf?inline=true.

Wikipedia

{{cite report |last1=Habib |first1=Muhammad |last2=Priyandita |first2=Gatra |title=NAVIGATING US-CHINA TECHNOLOGY COMPETITION: AN INDONESIAN PERSPECTIVE |publisher=Peace Research Institute Oslo |date=2024 |url=https://cdn.cloud.prio.org/files/67699131-be26-43d2-b377-162338326e00/CSIS_Research_Report_2024_Navigating_the_US-China_Technology_Competition_-_Indonesian_Perspe.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{habib2024navigating, author = {Habib, Muhammad and Priyandita, Gatra}, title = {{NAVIGATING US-CHINA TECHNOLOGY COMPETITION: AN INDONESIAN PERSPECTIVE}}, institution = {Peace Research Institute Oslo}, year = {2024}, url = {https://cdn.cloud.prio.org/files/67699131-be26-43d2-b377-162338326e00/CSIS_Research_Report_2024_Navigating_the_US-China_Technology_Competition_-_Indonesian_Perspe.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }