The Political Economy of Japanese and Chinese Infrastructure Financing Governance

Organizing Alliances, Institutions, and Ideology

This book explores the political economy of Chinese and Japanese infrastructure financing in Indonesia, examining how Chinese and Japanese actors utilize diverse modes including Official Development Assistant, commercial loans, export credits, business-to-business investments, and public–private partnerships to ensure profitability and manage risks.

Moving beyond traditional views of these financing modes as geoeconomic statecraft, the book exposes readers to a new perspective by situating infrastructure financing in the context of capitalist development. It reveals how contestation, conflicts, and compromise between socio-political forces including different segments of Japanese and Chinese capital, state actors, and civil society actors in Indonesia give shape to distinct modes of financing. Through detailed case studies and interviews across Japan, China and Indonesia, it uncovers the interplay between these forces and how their relations are sustained through regulatory complexes underpinning large-scale projects.

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