Prabowo's Visit to Japan Marks a Correction in Diplomatic Direction Towards Strategic Partnership
President Prabowo Subianto’s visit to Japan has garnered significant appreciation as a strategic step marking a correction in Indonesia’s economic diplomacy direction.
In recent years, Indonesia-Japan relations have appeared to dim somewhat as cooperation with China intensified, particularly in large-scale infrastructure and investment sectors.
“Japan has seemed somewhat sidelined so far. However, the nature of Indonesia-Japan relations is complementary, not substitutive. This differs from China, which tends to be substitutive in many industrial sectors,” said international relations observer Zenzia Sianica Ihza in her statement in Jakarta on Tuesday (31/3).
Zenzia explained that cooperation with Japan tends to be mutually complementary, especially in technology, industrial quality, and human resource development (HRD). Meanwhile, economic relations with China often take a substitutive form, replacing domestic roles in production chains.
“Japan brings technology, governance, and high standards. Indonesia provides the market, resources, and HRD. This is a healthy, long-term relationship,” said Zen.
In contrast, in many projects with China, Indonesia primarily serves as a market and production site with relatively limited technology transfer.
Prabowo’s visit is also seen as important as it coincides with major changes in Japan’s Official Development Assistance (ODA) scheme. Previously focused on physical development such as roads and bridges, Japan is now directing ODA towards HRD and technology, particularly artificial intelligence (AI).
In high-level meetings in Tokyo, it was agreed that Japan would support AI HRD development in Indonesia as part of the two countries’ long-term strategy. “This is not ordinary aid. This is an investment in the future. Japan wants to build a joint economic ecosystem with Indonesia,” said Zenzia.
This new approach is known as “co-creation”, an equal partnership between the two countries. Japan provides technology and financing, while Indonesia offers young talent, a large market, and data.
In the latest ODA scheme, AI is positioned as a key sector supporting various other strategic fields, from disaster mitigation and energy to industry.
Indonesia itself is preparing a national AI strategy to support the goal of becoming an advanced nation by 2045. The focus includes HRD development, attracting foreign investment such as data centres and R&D, and digitalisation of public services.
“If physical infrastructure was the priority before, now digital infrastructure and HRD are the keys,” said Zenzia.
Prabowo’s visit resulted in 11 memoranda of understanding (MoUs) worth a total of $23.63 billion or approximately Rp401.71 trillion, announced at the Indonesia-Japan Business Forum in Tokyo.
The cooperation covers various strategic sectors, from clean energy downstreaming, gas and geothermal development, semiconductor and AI ecosystems, to strengthening financial systems and investment.
For Zenzia, this value is not just a number but a strong signal of Japan’s confidence in Indonesia’s economic prospects.
“This shows Japan is not exiting Indonesia; instead, it is deepening engagement with a new, more strategic approach,” she said.
The visit is also seen as timely, leveraging the momentum of the “China Plus One” policy being implemented by Japanese companies. Many Japanese firms are diversifying their production bases away from China.
Indonesia is viewed as a strong candidate due to political stability, a large market, and abundant natural resources, especially critical minerals like nickel.
“This is a great opportunity for Indonesia to upgrade in the global supply chain,” said Zenzia.
Furthermore, Zenzia assesses that the visit is not solely economic but also touches on regional strategic security aspects.
Cooperation in maritime affairs, shipping routes, and regional stability is an important part of Indonesia-Japan relations, especially amid geopolitical dynamics in the South China Sea.
“Economy and security cannot be separated now. Japan is a relatively neutral and reliable partner in that context,” she said.
Zenzia emphasised that Prabowo’s step to Japan demonstrates efforts to rebalance Indonesia’s diplomatic direction. On one hand, Indonesia maintains relations with China. On the other, it is strengthening partnerships with Japan as an important pillar in long-term strategy.
“This is not about choosing one and leaving the other. It’s about placing partners according to character and national interests,” she said.
According to her, if this strategy is consistently implemented, Indonesia has the potential to become a new economic growth centre in Asia with Japanese technology support and domestic market scale.
“This is the right step, and it should have been done from the beginning,” Zenzia concluded.