Navigating a Fragmented World: Indonesia’s Role in the New Geopolitical Order
By Teguh Anantawikrama,
Vice Chairman of the Indonesian Chamber of Commerce (Kadin Indonesia)
Chairman of the Indonesian Tourism Investor Club
INVESTORTRUST.ID - In today’s shifting geopolitical landscape, the world is witnessing a rapid transformation—one marked by economic fragmentation, rising protectionism, and the steady erosion of the old global order. The United States, long seen as the flagbearer of free trade, has pivoted toward a policy of aggressive tariffs and economic nationalism. At the same time, new blocs like BRICS+ are gaining prominence, reshaping global power dynamics and introducing alternative systems of economic and political cooperation.
This new reality demands pragmatism, not idealism. We must understand this as not merely a temporary disruption, but a structural transition toward a multipolar world—a world in which no single country dominates, but where influence is distributed among regional power centers.
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Indonesia: A Natural Fulcrum of the Indo-Pacific
In the face of these changes, Indonesia stands at a critical juncture. Our country is not just another emerging market—it is a strategic archipelagic state with immense potential to lead.
Indonesia’s geographic location gives it unparalleled leverage. We sit astride the Strait of Malacca, the Sunda Strait, and the Lombok Strait—three of the most crucial maritime trade routes in the world. More than 60% of global trade passes through these waters. In an age of disrupted supply chains, this maritime advantage becomes an economic and security asset.
Politically, Indonesia represents a bridge between worlds—East and West, North and South, tradition and modernity. As the world’s third-largest democracy and the largest Muslim-majority nation, Indonesia carries moral and diplomatic weight in global forums. In addition, our membership in G20, BRICS+, ASEAN, and other regional bodies enables us to speak with authority in multiple strategic circles.
Responding to U.S. Tariffs with Strategic Agility
The rise of tariffs and protectionist policies from the United States should not be viewed purely as a threat. It is also an opportunity for economic diversification and industrial upgrading. Indonesia can position itself as an alternative hub for global manufacturing, especially in sectors sensitive to U.S.-China tensions.
More importantly, the trade realignment allows Indonesia to deepen its economic ties with non-traditional partners in the Middle East, Africa, South Asia, and Latin America—what I call the “Asia Plus” community. This is where the next wave of growth will emerge, and Indonesia must be at the center of that transformation.
Indonesia’s Leadership Role in “Asia Plus”
I firmly believe Indonesia is destined to become a leading voice for the Global South and a central pillar of Asia Plus—a community of countries bound not just by proximity, but by shared aspirations for sovereignty, sustainability, and inclusive growth.
We have the demographic strength, the natural resources, and the political stability to lead. Our rich reserves of nickel, copper, and other critical minerals are indispensable in the global transition to electric vehicles and renewable energy. Combined with our growing digital economy and thriving entrepreneurial sector, Indonesia is ready to define a new model of development—one that is equitable, green, and globally connected.
Seizing the Moment
To realize this vision, we must:
• Strengthen our position as a neutral yet active diplomatic broker, capable of bridging rival blocs without choosing sides.
• Invest in infrastructure that connects Indonesia with the wider Indo-Pacific, the Indian Ocean Rim, and emerging African and Latin American markets.
• Accelerate our domestic industrial policy to become a regional hub for green technology, critical minerals, and advanced logistics.
• Champion South-South cooperation, fostering new partnerships beyond the traditional axis of power.
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This is not the time for timidity. It is the time for confident, forward-looking leadership. The world is changing—and Indonesia must not merely adapt, but shape this new era.
As an Indonesian, as a leader in the private sector, and as someone committed to empowering communities, I believe it is our responsibility to ensure that Indonesia not only survives the coming shifts—but leads. ***