MULTILEVEL HEDGING FOR MIDDLE-REGIONAL POWER: INDONESIA ASCENT TOWARD POWERHOOD THROUGH HEDGING
Keywords:
Indonesia, middle-regional power, hedging
Abstract
The aim of this research is to understand how a middle-regional power, such as Indonesia, uses hedging to serve its interests and to address the lack of literature on Indonesian power and hedging. This research applies the concepts of ‘multilevel hedging’ and ‘hedging behavior’, along with a literature review method, to comprehend Indonesia's status and its hedging strategy and motives. The findings of this research indicate that hedging is not only employed for insurance and risk mitigation, but also as a means to build power. It was observed that for Indonesia, hedging is a tool to both enhance and maintain power, aligning with one of the primary objectives of Indonesian foreign policy.
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References
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Hidayatullah, N. L. (2017). Indonesia's Role as a Middle Power: a Neo-Liberalist and Constructivist Analysis. Jurnal Analisis Hubungan Internasional, 6(2), 1-11.
Iksan, M., & Soong, J.-J. (2023). The Political Economy of Indonesia’s Development Strategy under China-USA Power Rivalry and Hegemonic Competition: A Middle Power with Its Hedging Strategy. The Chinese Economy, 56(4), 304-320. https://doi.org/10.1080/10971475.2022.2136696
Indonesia, Japan seek to strengthen trade, economic ties. (2023, October 29). ANTARA News. https://en.antaranews.com/news/297366/indonesia-japan-seek-to-strengthen-trade-economic-ties
Indraswari, R. (2022). ASEAN Centrality: Comparative Case Study of Indonesia Leadership. Journal of ASEAN Studies, 10(1), 1-19. doi.org/10.21512/jas.v10i1.7906
International Monetary Fund. (2024). World Economic Outlook (April 2024) - Real GDP growth. International Monetary Fund (IMF). Retrieved June 27, 2024, from https://www.imf.org/external/datamapper/
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Jones, D. M., & Jenne, N. (2022). Hedging and grand strategy in Southeast Asian foreign policy. International Relations of the Asia-Pacific, 22, 205-235. doi.org/10.1093/irap/lcab003
Kao, P.-S. (2022). The Political Economy of Singapore and Its Development Strategies under USA-China Power Rivalry: A Choice of Hedging Policies. The Chinese Economy, 56(4), 339-351. https://doi.org/10.1080/10971475.2022.2136700
Korolev, A. (2016). Systemic Balancing and Regional Hedging: China–Russia Relations. The Chinese Journal of International Politics, 9(4), 375-397. doi.org/10.1093/cjip/pow013
Karim, M. F. (2018). Middle power, status-seeking and role conceptions: the cases of Indonesia and South Korea. Australian Journal of International Affairs, 72(4), 343-363. https://doi.org/10.1080/10357718.2018.1443428
Karim, M. F. (2023). Indonesia's Regional and Global Engagement: Role Theory and State Transformation in Foreign Policy. Routledge.
Kuik, C. (2021). Getting hedging right: a small‑state perspective. China International Strategy Review, 3, 300-315. https://doi.org/10.1007/s42533-021-00089-5
Kuik, C. C. (2010). SMALLER STATES' ALIGNMENT CHOICES: A COMPARATIVE STUDY OF MALAYSIA AND SINGAPORE'S HEDGING BEHAVIOR IN THE FACE OF A RISING CHINA [Dissertation]. John Hopkins University.
Kuik, C-C. (2016). How Do Weaker States Hedge? Unpacking ASEAN states’ alignment behavior towards China. Journal of Contemporary China, 25(100), 500-514. http://dx.doi.org/10.1080/10670564.2015.1132714
Kuik, C. C. (2016). Malaysia Between the United States and China: What do Weaker States Hedge Against? Asian Politics & Policy, 8(1), 155-177.
Kuik, C. C. (2024). Explaining Hedging: The Case of Malaysian Equidistance. Contemporary Southeast Asia: A Journal of International and Strategic Affairs, 46(1), 43-76. doi.org/10.1355/cs46-1c
Kuik, C. C., & Rozman, G. (2015). Light or heavy hedging: positioning between China and the United States. Joint US-Korea academic studies, 26, 1-9.
Lai, Y. M., & Kuik, C. C. (2021). Structural sources of Malaysia's South China Sea policy: power uncertainties and small-state hedging. Australian Journal of International Affairs, 75(3), 277-304. https://doi.org/10.1080/10357718.2020.1856329
Leatherbury, B. C. (2021). Hedging in the ASEAN Region: The Case of Singapore and Indonesia. Master Thesis, United States Marine Corps Command and Staff College Marine Corps University.
Lee, J. y. (2017). Hedging Strategies of the Middle Powers in East Asian Security: the Cases of South Korea and Malaysia. East Asia, 34, 23-37. doi.org/10.1007/s12140-016-9264-8
Lee, T. (2024). The Domestic Determinants of Hedging in Singapore's Foreign Policy. Contemporary Southeast Asia, 46(1), 77-102. doi.org/10.1355/cs46-1d
Liow, J. C. (2017). Can Indonesia Fulï¬ll Its Aspirations to Regional Leadership? In G. Rozman & J. C. Liow (Eds.), International Relations and Asia’s Southern Tier: ASEAN, Australia, and India (pp. 175-188). Springer Nature Singapore.
Liu, H. (2021). Mahathir's China policy and the changing political economy of Malaysia, 2018—2020. In F. Heiduk (Ed.), Asian Geopolitics and the US-China Rivalry. Taylor & Francis Group.
Medeiros, E. S. (2005). Strategic Hedging and the Future of Asia-Pacific Stability. The Washington Quarterly, 29(1), 145-167. https://doi.org/10.1162/016366005774859724
Mubah, A. S. (2019). Indonesia’s Double Hedging Strategy toward the United States–China Competition: Shaping Regional Order in the Indo-Pacific? Issues & Studies, 55(4), 1-27. https://dx.doi.org/10.1142/S1013251119400071
Naibaho, R. (2024, January 8). Menlu: Indonesia Pemain Utama di Kawasan dan Global, Bukan Penonton. detikNews. https://news.detik.com/berita/d-7130332/menlu-indonesia-pemain-utama-di-kawasan-dan-global-bukan-penonton
Nedić,, P. (2022). HEDGING STRATEGY AS A RESPONSE TO THE UNITEd STATES-CHINA RIVALRY: THE CASE OF SOUTHEAST ASIA. THE REVIEW OF INTERNATIONAL AFFAIRS, 73(1185), 91-112. https://doi.org/10.18485/iipe_ria.2022.73.1185.5
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Published
2024-08-10
How to Cite
Kusumadewi, H., & Wiswayana, W. M. (2024). MULTILEVEL HEDGING FOR MIDDLE-REGIONAL POWER: INDONESIA ASCENT TOWARD POWERHOOD THROUGH HEDGING . Indonesian Journal of International Relations, 8(2), 392-413. https://doi.org/10.32787/ijir.v8i2.591
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