Lesson video

Hello and welcome.

My name is Ms. Harrison.

I'm so excited to be learning with you today.

Today's lesson is called Effective Economic Development on the Geopolitical Influence on Indonesia.

Grab everything you might need for today's lesson and let's begin our learning.

By the end of today's lesson, you'll be able to explain how rapid economic development has changed Indonesia's international role.

Before we can begin this learning, we need to define the keywords that we'll be using throughout today's lesson.

The key words are: regional power, trade, and geopolitical.

Regional power, this is a country that is strong and influential in its part of the world, but not necessarily globally dominant.

Trade, the buying and selling of goods and services between countries.

Geopolitical, the way geography, economics, and politics influence a country's power and relationships with other countries.

Now that we've defined these keywords, we can begin our learning.

The first question we are going to explore in today's lesson is, how has growth changed Indonesia's regional role? Indonesia's rapid economic growth has not only transformed its economy, but has also shifted the balance of power in Southeast Asia.

With a GDP of over $1.

3 trillion, Indonesia is now the largest economy in the region, giving in a stronger voice in regional and global affairs.

This economic strength has helped Indonesia become a leading voice in ASEAN, the Association of Southeast Asian Nations, where it plays a key role in shaping political economic and security decisions.

As their regional and global challenges grow, Indonesia's also taking on a more responsibility for maintaining peace and stability in the Indo-Pacific region, working with partners to address issues like maritime security, trade, and climate change.

To support its growing role, Indonesia's investing heavily in technology, education and green energy, preparing its economy and society for the future.

These investments are not only boosting development at home, but also enhancing Indonesia's international reputation as a rising power.

ASEAN or the Association of Southeast Asian Nations is a key regional organisation that works to promote peace, political stability, and economic cooperation among its 10-member states.

Indonesia is a founding member of ASEAN and plays a central role in shaping its direction.

As the region's largest economy and most populous country, Indonesia has significant influence in both political and economic decision making within the organisation.

In 2023, Indonesia hosted the ASEAN Summit in Jakarta, reinforcing its leadership role in the region.

During the summit, Indonesia encouraged a United ASEAN response to key regional challenges such as the ongoing crisis in Myanmar, calling for peace, dialogue, and human rights to be prioritised.

Through ASEAN, Indonesia continues to support regional cooperation, diplomatic unity, and shared development goals, helping to ensure a more stable and prosperous Southeast Asia.

Which of these increases Indonesia's status as a regional power? Is it A, it has the smallest population? B, it relies heavily on foreign aid? C, it is the largest economy in Southeast Asia? And D, it has disputes with other countries.

Pause here whilst you have a think and press play when you're ready to continue.

Excellent, the answer is C.

It is the largest economy in Southeast Asia, well done.

Indonesia acts as a gatekeeper between the Indian and Pacific oceans, giving a critical role in global trade in regional security.

The country controls vital shipping routes, including the Malacca Strait, one of the world's busiest trade passages.

This makes Indonesia essential for smooth flow of goods, energy, and resources between Asia, the Middle East and beyond.

Indonesia plays an active role in protecting these routes, ensuring maritime security and the safety of international trade.

It also works with global partners including ASEAN members, the United States, Australia, and Japan to promote peace and stability in the Indo-Pacific region.

As regional tensions rise, Indonesia's geographic position, naval presence and diplomatic leadership make it a key player in shaping the future of international cooperation security.

GIS can be used to analyse shipping route traffic.

As you can see on the screen, we can see where the Malacca Street is and the South China Sea.

We can also use the key to understand which vessels are passing through these areas.

Why should Indonesia protect busy route like the Strait of Malacca? Pause the video here whilst you have a think and press play when you're ready to continue.

Excellent, let's check our answers.

Alex said, "If Indonesia doesn't protect them, it could lose control and face trade or security problems!" And he's correct.

Well done if you managed to come up with an answer like that as well.

Indonesia actively defends its maritime territory and growing tensions in competing claims in the South China Sea, a region that has become one of the world's most contested maritime zones.

A key flash point is in Natuna Islands, located in northern Indonesia, near the area claimed by China's nine-dash line.

While China does not claim the Natuna Islands themselves, its broad maritime claim overlaps with Indonesia's exclusive economic zone, an area where Indonesia has full rights to explore and use maritime resources as defined by international law.

Indonesia has consistently rejected China's claim, stating that the Natuna Islands and the surrounding waters are part of its sovereign territory, an EEZ.

In accordance with the United Nations Convention on the Law of the Sea, this position is widely supported by international legal standards and has been reaffirmed by Indonesian diplomatic statements and official policies.

In 2020, after a series of Chinese fishing vessels and Coast Guard ships entered the disputed waters, Indonesia responded with a strong show of force.

It deployed naval warships and fighter jets to the region, conducting patrols and surveillance missions to assert control and make clear its territorial boundaries.

These actions demonstrate Indonesia's firm stance on protecting its sovereignty, not only to defend its own national interests, but also maintain regional stability and respect for international maritime law.

As tensions in the South China Sea continue, Indonesia is emerging as a key regional power, committed to defending its maritime rights and promoting rules-based international order.

True or false? The Natuna Islands are disputed by Indonesia and the EU.

Pause here whilst you decide if this statement is true or false and press play when you're ready to continue.

Fantastic, the answer is false.

I would now like you to explain why.

Pause the video here and press play when you're ready to continue.

Excellent, the reason why the statement is false is because the Natuna islands belong to Indonesia.

The dispute involves China's nine-dash line, which overlaps with Indonesia's exclusive economic zone around the islands.

Well done if you managed to explain that correctly.

To reinforce its claim over Natuna Islands and protect its exclusive economic zone, Indonesia has built military base on the islands.

This base strengthens stability to monitor and control activity in the surrounding waters.

Indonesia also holds joint naval exercises with other countries, including key international partners to demonstrate its military presence and defend its maritime territory.

These actions show Indonesia's commitment to safeguarding sovereignty and maintaining regional security in the face of competing claims in the South China Sea.

Why has Indonesia increased patrols around the Natuna Islands? Is A, to study seismic events in this area of the Ring of Fire? B, to promote Chinese fishing? C, to protect its maritime rights and resources? Or D, to avoid conflict with ASEAN? Pause here whilst you decide and press play when you're ready to continue.

Excellent, the answer is C, to protect its maritime rights and resources, well done.

Regional disputes between Indonesia and China involve which sea? A, the Arabian Sea;, B, the Mediterranean Sea; C, the Sea of Japan; D, South China Sea.

Pause here and press play when you're ready to check your answers.

Fantastic, the answer is D, the South China Sea, well done.

I would now like you to complete the word fill using the words below.

Pause the video here whilst you attempt this task and press play when you're ready to continue.

Fantastic, let's check our answers.

Your text should read like this: Indonesia is the most important regional power in Southeast Asia.

It plays a leading role in ASEAN, a group of Southeast Asian countries that work together on trade and politics.

A key part of Indonesia's influence comes from its control of important maritime areas, including its economic zone around the Natuna Islands.

Indonesia uses naval patrols and diplomacy to maintain security in the region.

Well done if you managed to answer that correctly.

You've done brilliantly.

We're now going to explore our second question of today's lesson.

How does Indonesia influence global superpowers? Indonesia aims to maintain good relationships with major world superpowers like China and the United States, but it carefully avoids taking sides.

Instead of aligning with one country or another, Indonesia chooses to stay independent, a strategy known as non-alignment.

By using diplomacy, trade and regional cooperation, Indonesia builds partnerships with many different countries.

This helps it to expand its influence while maintaining stability and flexibility in a complex global environment.

Because of this approach, Indonesia is seen as a middle power, a country that plays an important and respected role in international affairs, but it is not a superpower.

It uses its strategic location, economic growth, and diplomatic leadership, especially within ASEAN to help shape regional decisions and promote peace.

True or false? Indonesia's geopolitical aim is to stay neutral between China and the USA.

Pause the video here whilst you decide and press play when you're ready to continue.

Fantastic, the answer is true.

I would now like you to explain why.

Pause here and press play when you're ready to continue.

Fantastic, the reason why the statement is true is because Indonesia stays neutral between China and the USA.

It works with both countries.

It trades with China and cooperates with the USA on security.

Indonesia doesn't take sides and supports peace and balance in the region.

Well done if you managed to explain that correctly.

Lucas and Sofia are having a discussion about what being a middle power means for Indonesia.

Who is correct? Lucas says, "It means Indonesia is weak because it is not as powerful as countries like the USA or China.

I think it does not have much say in global decisions." Sofia said, "It is not a superpower, but has global influence in Southeast Asia.

Other countries in the region listen to Indonesia, especially in ASEAN." Pause here whilst you decide who is correct and press play when you're ready to continue.

Excellent, Sofia is correct.

Well done if you identified that correctly.

China and Indonesia have built a strong economic relationship with deep ties in trade investment and infrastructure development.

China is Indonesia's largest trading partner with billions of dollars in goods exchanged each year.

Through the Belt and Road Initiative, China has invested heavily in Indonesia's infrastructure, funding major projects like the Jakarta-Bandung high speed railway.

This project was financed and built and equipped with Chinese technology and is a symbol of the two countries economic cooperation.

Despite these strong ties, political tensions remain, especially over competing maritime claims in the South China Sea.

Indonesia has clashed with China over its activities near the Natuna islands, which lie close to China's nine-dash line claim.

This shows the complexity of their relationship.

While China is a vital economic partner, Indonesia continues to defend its sovereignty and maintain a neutral foreign policy balancing corporation with caution.

The United States view Indonesia as a key partner in Southeast Asia, especially in efforts to balance China's growing influence in the region.

Indonesia and the USA cooperate on both security and trade.

In 2021, trade between the two countries reached $37 billion highlighting strong economic ties.

On the security side, the two countries regularly hold joint military exercises such as the Garuda Shield in 2022.

This major exercise led by Indonesia and the USA include multiple countries and aim to strengthen regional security, military readiness, and international cooperation.

Both Indonesia and the US also support the principle of freedom of navigation in the South China Sea standing for open sea roots, a rules-based international order.

Through this partnership, Indonesia maintains its independent foreign policy while working with the US to promote stability, security, and shared interest in the Indo-Pacific region.

Which of the following is a way in which Indonesia partners with the USA? A, as part of NATO and alliance protecting Europe; B, through military exercises like the Garuda shield; C, in criticising China in the media; D, through increasing tariffs on US exports? Pause here whilst you decide and press play when you're ready to continue.

Excellent, the answer is B, through military exercises like the Garuda shield, well done.

Indonesia uses culture and diplomacy to increase its influence.

It actively promotes democratic values through platforms like the Bali Democracy Forum, which brings together countries to discuss democracy governance in an open and inclusive way.

Indonesia is also parts of significant role in global forums as parts of the United Nations and the G20.

It helps shape international discussions on climate change, economic development, and peace building.

As a leader in ASEAN and the Global South.

Indonesia advocates for the interests of the developing countries promoting farer global systems and sustainable development.

A key part of Indonesia's diplomacy is it focuses on peace and sustainability.

It engages in peacekeeping missions, supporting climate diplomacy, and works to build partnerships based on mutual respect and cooperation.

Through these efforts, Indonesia positions itself not just as a regional power, but as a respected global voice for stability, progress, and inclusive development.

Which of the following global groups does Indonesia belong to? Is it A, G7; B, NATO; C, G20; D, EU? Pause here whilst you decide and press play when you're ready to continue.

Excellent, the answer is C, G20, well done.

True or false? China has no economic ties to Indonesia.

Pause a video here whilst you decide and press play when you're ready to continue.

Fantastic, the answer is false.

I would now like you to explain why.

Pause here and press play when you're ready to continue.

Fantastic, the reason why this statement is false is because China has strong economic ties with Indonesia.

It invests in infrastructure, trade and industry, and its Indonesia's major trading partner.

Projects like the Jakarta-Bandung railway show how close their economic relationship is.

Well done if you managed to explain that correctly.

I would now like you to complete the table on Indonesia's relationship with China and the USA.

I would like you to focus on certain aspects of their relationship, like their type of relationship, area of cooperation, main benefit for Indonesia, the area of tension, and how does Indonesia balance this.

Pause the video here whilst you attempt this task and press play when you're ready to continue.

Fantastic, let's check our answers.

We're going to look at USA first.

The type of relationship, they're a diplomatic partner.

The area of cooperation is military and trade.

The main benefit for Indonesia is security support and investment.

Area of tension, pressure to align politically.

And how does Indonesia balance this? It avoids a formula lines and remains neutral.

China, their type of relationship is an economic partnership.

Area of cooperation is through infrastructure investment.

The main benefit for Indonesia are their transport projects like the Jakarta-Bandung railway.

An area of tension is a South China Sea dispute.

And how does Indonesia balance this? It remains neutral, but defends its interests.

Well done in this task.

I hope you manage to include those answers in yours.

We're now going to explore our final question of today's lesson.

How has trade reshaped global relations? Trade and investment are powerful tools that help a country to grow its economy and expand its influence on the world stage? Indonesia is using strong economic growth to strengthen its role in Southeast Asia and beyond.

As the country grows, it attracts more foreign direct investment from countries and global companies looking to do business in Indonesia.

This investment then leads to more exports and trade as Indonesian industries produce and sell goods to international markets.

With more global trade connections, Indonesia gains greater influence in regional and global decisions.

This growing influence helps Indonesia form stronger international relationships, join key forums like the G20 and act as the leader in ASEAN and the Global South.

By building a stronger economy through trade and investment, Indonesia increasing its global voice strengthening its diplomatic partnerships and shaping the future of regional cooperation.

The European Union wants to build a stronger economic partnership with Indonesia, and it's currently negotiating a major trade agreement known as the Comprehensive Economic Partnership Agreement.

The goal of the deal is to promote fair economic growth whilst also supporting environmental protection.

The EU is particularly focused on issues like the protection of forests, sustainable trade practises, and achieving climate goals.

It also raised concerns over deforestation, especially related to the palm oil production.

Indonesia, on the other hand, is a major exporter of palm oil, textiles, rubber, and electronics.

While it supports cooperation, it wants to protect its economy, ensure the deal is fair, flexible, and takes into account the needs of a developing country.

The CEPA negotiations reflect the challenge of balancing environmental responsibility with economic development, but also the opportunity for stronger trade ties investment and shared progress between Indonesia and in the EU.

The EU and Indonesia's trade has seen periods of growth and decline in recent years, which have been affected by global economic shifts, environmental concerns, and changing trade policies.

To build a stronger and more stable relationship, both sides are working together on the Comprehensive Economic Partnership Agreement.

The deal aims to improve trade by reducing tariffs, boosting investment, and ensuring sustainable practises.

By addressing economic and environmental concerns together, the partnership is designed to create a more balanced and long-term partnership supporting growth, fairness, and climate goals for both Indonesia and the European Union.

What does the graph suggest about trade balance between the EU and Indonesia? Pause here whilst you take a closer look at the and exports between the EU and Indonesia and press play when you're ready to check your answer.

Fantastic, Sofia has said, "The EU imports more from Indonesia than exports, so Indonesia makes more money from the trade." Well done if you manage to identify that correctly.

Which one of these is a key Indonesian export to Europe? is A, chocolate; B, electric vehicles; C, palm oil; or D, timber? Pause here whilst you decide and press play when you're ready to continue.

Fantastic, the answer is C, palm oil.

Well done if you identified that correctly.

What is the EU-Indonesian CEPA? Is it A, military pact between Europe and Indonesia; B, a trade agreement being negotiated; C, a digital alliance with China; or D, a palm oil tax? Pause here whilst you decide and press play when you're ready to continue.

Excellent, the answer is B, a trade agreement being negotiated, well done.

The United States plays an important role in supporting Indonesia's long-term development and global integration through the Indo-Pacific Economic Framework.

A major regional initiative launched in 2022.

This initiative is not a traditional free trade agreement, but instead focused on building resilience, sustainability, and inclusive economies across the Indo-Pacific.

For Indonesia, it offers a platform to access US investment technology and skills training while maintaining its independence position in global affairs.

Under this, the US supports Indonesia in several key ways, technology and digital access.

The US is investing in expanding internet infrastructure and promoting digital literacy, especially in rural areas.

This helps more Indonesians access the digital economy and creates new business opportunities.

It helps with clean air and climate change action.

The IPEF supports Indonesia's transition to low carbon industries such as solar energy, electric vehicles, and sustainable agriculture, and this aligns with Indonesia's climate goals and reduces reliance on fossil fuels.

It provides modern infrastructure and transport systems. The investment in smart transport systems, data infrastructure, and green logistics is helping Indonesia build a more efficient and environmentally friendly cities and supply chains.

Skills and workforce development.

The US is providing training programmes to help Indonesians gain the skills for digital and tech-based jobs.

Preparing the workforce for a fast changing global economy.

Fair trade and labour practises.

It helps to promote high standards for labour rights, environmental protection, and ethical trade, helping to ensure that Indonesia's growth benefits its people and meets international expectations.

Together, these efforts promote sustainable and economic growth, deepen the US and Indonesian partnership, and strengthen Indonesia's role as a key player in the Indo-Pacific region.

While the US supports Indonesia through initiatives like the IPEF, proposed changes to US trade policy could create challenges for Indonesia's exports.

What is currently being proposed? New tariffs on Indonesian goods like textiles, rubber; ending a generalised system of preference, a trade deal that allowed Indonesian exports to enter the US with lower taxes.

Why does this matter? Indonesia exports over $2 billion worth of goods to the US each year under the GSP.

If tariffs increase, Indonesian products will become more expensive in American markets, making it harder to compete with other countries that still benefit from lower trade barriers.

This could have serious consequences at home, especially for small factories and workers and sectors like the textiles, which rely heavily on exports.

Job losses, reduce production, and declining income for local businesses are all possible outcomes if the trade changes go ahead.

These developments highlight the importance of trade diplomacy as Indonesia seeks to maintain fair access to key global markets while balancing economic and political interests.

True or false? The Indo-Pacific Economic Framework is led by China.

Pause here whilst you decide and press play when you're ready to continue.

Fantastic, this statement is false.

I would now like you to explain why.

Pause here and press play when you're ready to continue.

Excellent, the reason why this is false is because the Indo-Pacific Economic Framework was started by the United States to boost trade and cooperation in the region.

It is part of the USA's efforts to balance China's influence, and so it's not led by China.

Well done if you managed to explain that correctly.

Indonesia uses trade not just for economic growth, but is a powerful tool to expand global partnerships and increase its geopolitical influence on the world stage.

It does this by building supply chain connections with a wide range of countries.

Indonesia reduces its independence on the single partner.

This makes its economy more resilient and gives it greater freedom in international relations.

Partnerships with countries in Asia, Europe, and the US help integrate Indonesia into global markets and production networks.

At the same time, Indonesia focuses on green technology and digital services, which is attracting long-term foreign investment, especially with countries looking to shift towards sustainable and tech-driven industries.

This positions Indonesia's a forward thinking and competitive partner in the global economy.

Through these trade relationships, Indonesia also gains soft power, building trust, diplomatic ties, and international respect.

It is active role in trade helps raise its global status.

Not just as a regional leader in Southeast Asia, but as an increasingly influential player in global affairs.

Aisha and Alex have answered the question, should Indonesia only trade with rich countries? Who is correct? Aisha says, "Indonesia should build ties with all regions!" Alex said, "Poor countries will not help Indonesia." Paul's here while you decide who is correct and press play when you're ready to continue.

Excellent, the correct person is Aisha.

I would now like you to explain why.

Pause here and press play when you're ready to continue.

Fantastic, the reason why Aisha is correct is because trading with developed rich and developing poor countries helps Indonesia keep its economies stable and flexible.

It also strengthens regional ties and supports growth in Southeast Asia, which benefits Indonesia too.

Well done if you manage to explain that correctly.

Why does the EU criticise some of Indonesia's exports? Is it A, they're too expensive for European consumers; B, they cause environmental damage; C, they're not made of EU approved plastic; or D, they're not popular with European consumers? Pause here whilst you decide and press play when you're ready to continue.

Excellent, the answer is B, they cause environmental damage, well done.

I would now like you to write a report for Indonesia's trade minister explaining how trade with the EU and the US increases global influence and what challenges Indonesia might face.

In your report, I would like you to use examples from both the EU and USA to show how trade helps, and explain one benefit and one challenge of global trade for Indonesia.

Pause here whilst you attempt this question and press play when you're ready to continue.

Fantastic, let's check our answers.

Your answer could include some of the following points.

Trade has made Indonesia more globally influential by increasing its connections with powerful countries like the EU and the USA.

For example, the EU is negotiating a trade agreement with Indonesia called the CEPA.

And although the EU is concerned about palm oil and deforestation, Indonesia still benefits from exporting products like palm oil, textiles, and electronics.

With the USA, Indonesia is part of the Indo-Pacific Economic Framework, which focuses on digital trade and green technology.

The USA also invests in Indonesian infrastructure and supports education and technology.

However, recent US policies under the Trump administration created some uncertainty.

There was discussion of imposing tariffs on key Indonesia exports like textiles and rubber, and possibly removing Indonesia from the generalised system of preferences.

This is a trade deal that gives Indonesia lower export taxes.

This shows that while global trade increases, Indonesia's influence, it also makes the country vulnerable to foreign policy changes.

These partnerships bring economic growth, foreign investment and jobs helping Indonesia modernise and become more respected global player.

However, there are challenges, like having to meet strict environmental rules from the EU and avoiding too much influence from foreign investors.

Overall, trade gives Indonesia economic strength and soft power making a key emerging power in global politics.

Well done on this task.

You've done brilliantly, and I hope you manage to include some of those points in your answer.

We've now come to the end of our learning on the effects of economic development of the geopolitical influence of Indonesia.

Before we finish this lesson, let's summarise everything we've learned today.

Indonesia's rapid economic growth has not only improved living standards, it has also raised its status as a regional power and expanded its geopolitical influence.

In Southeast Asia, Indonesia plays a leading role in ASEAN helping to shape political decisions and promote peace and cooperation across the region.

It also defends vital trade routes and asserts controlling contested maritime areas like the Natuna Islands, highlighting its growing military and strategic presence.

On a global stage, Indonesia balances strong economic relationships with both China and the United States while maintaining an independent political stance.

This non-aligned approach allows it to cooperate broadly without being tied to one side.

Meanwhile, growing trade investment with partners like the EU and USA has strengthened Indonesia's role as a major emerging power, not only economically, but also diplomatically.

Through its strategic location, neutral diplomacy and economic leadership, Indonesia is becoming an increasingly important voice in shaping the future of both Indo-Pacific and the global order.

Well done on today's lesson.

You've done brilliantly and I look forward to telling with you again very soon.