Indonesia's Geography Boosts Its International Leverage

8 hours ago 4

TEMPO.CO, Jakarta - One of the founders of the Foreign Policy Community of Indonesia (FPCI) and a researcher at the National Research and Innovation Agency (BRIN), Dewi Fortuna Anwar, stated that Indonesia's geographical location and natural resources can be used as leverage in international affairs. She said, "These advantages can be beneficial as a tool for political and economic pressure," during a discussion titled "Mid-Year Geopolitical and Economic Outlook 2026" at the FPCI Secretariat in Jakarta on Friday, January 19, 2026.

Dewi compared Indonesia's situation with Iran, which controls the Strait of Hormuz, playing a crucial role in the international arena. "Modern warfare doesn't solely rely on advanced defense systems or military equipment," she added.

She remarked that Indonesia has traditionally regarded its geographical location as something neutral. However, the current scenario indicates that the geographical advantage can be used in conflict situations.

"I certainly do not want Indonesia to use its geographical position as a tool of political pressure, but we need to realize that this capability exists," she said.

She also added that another commodity that could serve as leverage for Indonesia is energy. Dewi emphasized that energy is a powerful instrument for exerting political and economic pressure.

Furthermore, she pointed out that the situation is not black and white, with major powers always dominating weaker countries. She stated that it is this kind of situation that shapes order or even disorder.

She cautioned that a country becomes vulnerable when it depends on a single energy supply source. She mentioned the need to spread the risk by diversifying energy sources and supplies, particularly for Indonesia.

The political researcher from BRIN noted that the United States is beginning to move away from the energy transition agenda. This issue is starting to be left behind. In the meantime, countries that have achieved energy resilience have diverse energy sources.

In addition, countries engaged in international trade and cooperation progress faster than those isolating themselves from the world. However, she emphasized the importance of countries diversifying their risk due to vulnerabilities in the global supply chain caused by pandemics, natural disasters, and conflicts. This means that it is crucial to diversify energy market sources beyond one country.

"Indonesia needs to continue diversifying and, at the same time, deepen cooperation with various parties. In other words, we need to build resilience through cooperation," she said.

This public discussion held by FPCI is expected to examine the main trends shaping the global landscape in the first half of this year, and assess their implications for Indonesia's foreign policy and economic priorities.

The discussion will also reflect the strategic choices Indonesia faces in determining its policy direction for the rest of 2026. Additionally, the event was attended by one of the founders of FPCI and BRIN researcher Dewi Fortuna Anwar, the Executive Director of the Indonesian Survey Institute (LSI) Djayadi Hanan, and a Senior Economist from the Institute for Development of Economics and Finance (INDEF).

Read: UNICEF: Climate Crisis Takes Toll on Children's Mental Health

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