Achieving Strategic Autonomy: Balancing Foreign Policy and Economic Development Goals

On October 20, 2024, Joko Widodo stepped down as president of Indonesia, concluding two consecutive terms in office. The president’s achievements over the course of a decade have been subjected to analysis by international media outlets and experts, which, in the majority of cases, have offered praise for his performance. While he provided guidance to the country’s politically fragmented and often corrupt political elite, he also attracted billions of dollars in foreign investment and implemented the so-called downstreaming policy that altered the country’s economic structure, increasing the economy’s added value. Furthermore, he also placed a strong emphasis on improving public access to education and health care. His approachability was a significant factor contributing to his high popularity in Indonesia. In contrast, his foreign policy was not a prominent topic of discussion among pundits, who often regarded the policy as inward-looking and domestically focused. Nevertheless, it can be argued that he also modified Indonesian foreign policy, albeit in a more subtle and gradual manner. This chapter will examine the ways in which Joko Widodo transformed Indonesia’s foreign policy into a transactional foreign policy approach. We will start with a concise overview of the preceding foreign policy.