The world for several decades has been acknowledged The United States of America as the leader with its dominance in military and economy resources. The U.S. dominance in international institutions shaped international society through its development agenda, which was believed as the only way to be developed. However, China rising economy in contrast with the U.S. declining economy then opens the developing countries’ eyes to other alternative development notions. Nowadays, the Indonesia long troubled relations with China entered a new period. If during Cold War Indonesia had an intimate relations with the U.S. to avoid China domination in Asia, the soft power enabled China to develop a “mutual understanding and equal relations” with Indonesia. However, with U.S. intention in getting back its influence in Asia, the China-U.S. rivalry then brings many opportunity and challenge to Indonesia.

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Keywords soft power, power transition, The US-China rivalry, Indonesia, China, infra-structure projects
Thesis Advisor Hout, Wil
Persistent URL
Series International Political Economy and Development (IPED)
Purba, Martina Angelika. (2012, February). The Rise of China Economic Power: China Growing Importance to Indonesian Economy. International Political Economy and Development (IPED). Retrieved from