Luhut Pandjaitan: Indonesia's Strategy Amid the Rivalary Between the United States and China, and the Plan to Achieve GDP Growth Targets

An exclusive interview with the Chairman of Indonesia's National Economic Council, Luhut Pandjaitan with The Straits Times on his Youtube channel who talks seriously about Indonesia facing the US and China rivalry, even plans to improve the economy through digitalization which can save the state budget. Are you curious about the chat? Let's see the exciting story from Indonesia's "Economic Fixer"!

Maintain balance without getting stuck

The rivalry between the United States and China is nothing new. These two large countries are often involved in various conflicts, both in the fields of economics, security, and international politics. In the midst of their increasingly fierce rivalry, Indonesia faces a major challenge to maintain a neutral position.

Luhut Pandjaitan, as Chairman of the National Economic Council, emphasized that Indonesia wants to maintain good relations with both countries. "We offer anything as long as it provides benefits to both sides, and of course respect and comply with international law," he said.

Indonesia upholds the principle of freedom and seeks to actively maintain good relations with important countries without taking sides. Amid the conflict between the US and China, Indonesia chooses balance in its international diplomacy. Former Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said Indonesia focuses on mutually beneficial relations as long as both countries respect international law. "We will offer anything as long as it is beneficial for both parties," he said.

This free and active principle allows Indonesia to take advantage of the opportunities offered by its relations with the United States and China, without having to compete with them. Luhut also emphasized the importance of abiding by international law, particularly in the South China Sea dispute, where Indonesia plays a mediating role to maintain stability in Southeast Asia. This approach allows Indonesia to develop, maintain its sovereignty, and play an active role in regional peacekeeping without being directly involved in global competition.

Regional cooperation between countries

Luhut Pandjaitan emphasized the importance of cooperating with a small country like Singapore, which he considers a strategic partner with great potential in human resources. "Singapore is a very important strategic partner for Indonesia," he said, encouraging Indonesia to learn from the country's strengths.

Luhut also proposed joint studies in the South China Sea, modeled after the Arctic Council for regional research, while adhering to international laws such as UNCLOS. Through this strategy, Indonesia focuses on collaboration, not conflict, for global benefits and to strengthen its position in Southeast Asia.

Indonesia's GDP growth target

Luhut Pandjaitan as Chairman of Indonesia's National Economic Council has a recommendation on how Indonesia can achieve its GDP growth target by digitizing. "By doing this, we can increase efficiency in the country, reduce face-to-face transactions and use more machines." He said. The goal is to change to a more modern way of working with the help of technology. Which means everything can be done through the user's cellphone and can be done anywhere with the help of an application without the need to come to the place.

What are the benefits if Indonesia digitizes?

According to the former Coordinating Minister for Maritime Affairs and Investment, if Indonesia can digitize, the government can save a massive 30-40% of the state budget. And it can be used for other facilities such as schools, roads, or other important things.

Not only that, Luhut Pandjaitan said that this way not only becomes economical, but also the Indonesian economy can grow faster. Because currently Indonesia's economic growth is around 5% per year, and if digitalization can run smoothly, it can increase to 7%. The result can create many business opportunities for the community and even open up jobs. On the other hand, the Indonesian government must also be transparent. All transactions must be clear and no one "plays behind".

Even so, Luhut also emphasized that they do not just make a policy. "My job is to give recommendations to the president based on the studies we have done." He said because all of this is advice for the president. Luhut also emphasized that these recommendations do not have any interests other than for the benefit of the community.

Conclusions:

In the midst of tensions between the United States and China, Luhut Pandjaitan tries to maintain balance and not take sides. Indonesia opens opportunities for cooperation with anyone as long as it is profitable and also remains in accordance with international rules.

Luhut's recommendations for the president regarding digitalization can certainly make Indonesia save more budget, increase efficiency, and can accelerate Indonesia's economic growth and can benefit the Indonesian people.

In this case, the author agrees with what Luhut Panjaitan said. the tension between the two big countries that are very influential makes indonesia also have to be careful. although it is open to mutually beneficial cooperation, but also the principle of indonesia which adheres to the principle of free and active not to take sides in the midst of the tension between the two countries. besides that, the recommendation for digitalization is very good, considering that technology is advancing and this needs to be considered again for the sustainability of the people and the country of indonesia.

if you want to see the full exclusive interview, you can see through this link:

https://youtu.be/H4fK5tDcFJ0?si=BUYTAyVNirF1-9KA