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All Journal Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal)
Pattinussa, Jhon
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Social Sciences

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DIPLOMASI EKONOMI INDONESIA: TANTANGAN DARI UNDANG-UNDANG PENGURANGAN INSENTIF AS DAN DOMINASI NIKEL OLEH CHINA Pattinussa, Jhon; Pandjaitan XIV, Qanszelir G. B.; Patading, Gusti; Pratikno, Roy Vincentius
Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal) Vol. 17 No. 33 (2025): January - June
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/verity.v17i33.9666

Abstract

Indonesia, as the world’s largest producer of nickel, faces significant challenges in leveraging its resources for economic development. These challenges are compounded by external pressures, including the U.S. Inflation Reduction Act (IRA), and internal issues related to China’s dominance in Indonesia’s nickel sector. Despite its vast nickel reserves, Indonesia is excluded from the green incentives provided under the IRA, which threatens to undermine its strategic position in the global nickel supply chain. The study seeks to understand the underlying factors driving this exclusion and the impacts of China’s dominance on Indonesia’s nickel industry. This research employs an explanatory qualitative approach, drawing from literature reviews and interviews with an industry expert. The methodology focuses on interpreting the interrelations between international trade policies, environmental sustainability, and Indonesia’s domestic challenges. The study identifies three key factors behind Indonesia’s exclusion from the IRA: the lack of a Free Trade Agreement (FTA) with the United States, environmental concerns over Indonesia’s mining practices, and the significant presence of Chinese companies in Indonesia’s nickel sector. China’s dominance has also led to environmental degradation, reduced domestic industrial competitiveness, and economic dependency. To address these challenges, the research proposes that Indonesia negotiate an FTA with the United States. Such an agreement would create a framework for accessing IRA incentives, strengthen Indonesia’s economic sovereignty, and mitigate China’s dominance. While the negotiation process will require strong political will and careful diplomacy, it presents a viable path for Indonesia to secure its economic and geopolitical interests.
Unveiling Indonesia’s Challenges in Attracting Foreign Direct Investment: The Case of Apple Inc and the Electronic Manufacturing Industry Roring, Hanna Angel; Pattinussa, Jhon; Pratikno, Roy Vincentius
Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal) Vol. 17 No. 34 (2025): July-December
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/verity.v17i34.10443

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in advancing economic growth, industrial modernization, and technology transfer in emerging economies. This study explores Indonesia’s persistent challenges in attracting high-technology FDI within the electronic manufacturing sector, focusing on the case of Apple Inc. as a reflection of broader policy dynamics. Employing a qualitative case study approach, the research analyzes secondary data from official reports, government publications, and scholarly literature to uncover the intersection between Indonesia’s economic ambitions, political diplomacy, and security considerations. The findings reveal that although Indonesia possesses significant potential—characterized by abundant resources, a large domestic market, and an expanding digital ecosystem—its investment climate remains hindered by bureaucratic inefficiencies, inconsistent regulations, and limited technological infrastructure. The study highlights that Apple Inc., while fulfilling its Local Content Requirement (TKDN) through software-based initiatives such as the Apple Developer Academy, continues to refrain from establishing local manufacturing facilities. This decision underscores the broader structural constraints faced by multinational corporations operating in Indonesia’s regulatory environment. Economically, the research demonstrates that FDI remains central to Indonesia’s goal of transitioning from resource-based exports toward high-value manufacturing. Politically, it shows that FDI functions as an instrument of economic diplomacy, enhancing Indonesia’s international credibility. From a security perspective, strengthening the electronic manufacturing sector through FDI is vital for achieving technological sovereignty and resilience amid global supply chain disruptions. The study concludes that Indonesia’s success in attracting sustainable FDI depends on its ability to harmonize economic liberalization with institutional reform and industrial readiness. Addressing these structural challenges is imperative for Indonesia to fully integrate into the global value chain and achieve its vision under the Making Indonesia 4.0 roadmap.
Co-Authors Pandjaitan XIV, Qanszelir G. B. Patading, Gusti Pratikno, Roy Vincentius Roring, Hanna Angel