Universitas Gadjah Mada (UGM) officially inaugurated Professor Nur Rachmat Yuliantoro as a professor in the field of international development in East Asia, stationed at the Faculty of Social and Political Sciences (Fisipol UGM).
In his inaugural address, titled “The ‘Debt Trap’ Issue in Financing China’s Belt and Road Initiative (BRI) Projects in Indonesia: An Open Study of Complexity and Challenges”, Professor Yuliantoro highlighted the intricate development relations between Indonesia and China, particularly through the financing schemes of BRI projects.
“Indonesia’s foreign debt to China can be interpreted as a ‘Gordian Knot’, reflecting the complex entanglement between economic dependence, territorial sovereignty challenges, and domestic political elite interests,” he emphasized on Thursday, Jul. 24, 2025, at the UGM Senate Hall.
According to him, this issue is not merely about numbers, but about power relations and geopolitical strategy.
The inauguration served as an important moment to spotlight contemporary global development challenges from the perspective of developing countries.
Professor Yuliantoro explained that within the context of international development, the concept of a “debt trap” should not be viewed solely from the nominal amount of debt, but must be examined within a broader framework.
He traced the roots of global inequality to colonial history and the dominance of Western-style development systems.
According to him, development is not merely a technocratic process but also a reflection of values, history, and culture.
“Decolonization has now become one of the key themes in the international development process across many countries,” he stated.
Turning to the BRI as China’s primary strategy for advancing international cooperation, Professor Yuliantoro urged the public not to hastily dismiss the initiative as purely hegemonic.
He explained that BRI spans more than 150 countries with financing reaching up to USD 1.6 trillion, indicating the program’s ambitious scale.
On the other hand, BRI presents opportunities for more equitable cooperation among developing nations, provided there is strong governance and a clear national strategy.
“The broad reach and diverse nature of BRI projects certainly spark debate, but we must approach it with careful and open analysis to avoid premature conclusions,” he said.
In the Indonesian context, Professor Yuliantoro cited projects such as the Jakarta-Bandung High-Speed Railway (Whoosh) as a concrete example of the complex economic-political relationship between the two countries.
He explained that project cost overruns and the use of state budget (APBN) funds have raised concerns about fiscal sustainability and debt management transparency.
“In the case of Whoosh, we see how foreign debt can transform into a hidden burden on the state,” he remarked.
Further, Professor Yuliantoro stressed that the label of “debt trap” about China is widely debated and lacks a strong empirical foundation.
He pointed to studies showing that debt trap allegations often do not reflect the on-the-ground reality, even in countries such as Sri Lanka and Laos.
“If we examine more closely, many project failures are not due to China’s malicious strategies, but rather to mismanagement by local elites and weak institutional capacity,” he explained.
This indicates that the greater challenge lies within the country itself.
Therefore, strengthening institutions and governance is essential to avoid any form of debt trap.
Nevertheless, Professor Yuliantoro also highlighted the non-economic dimensions of debt dependency, such as diminished diplomatic agility and reluctance to raise sensitive issues like the Natuna Sea or the condition of Uyghur Muslims.
In his view, when economic considerations dominate bilateral relations, political maneuvering space narrows, risking a loss of policy independence.
“The perception that Indonesia is economically dependent on China has complicated our diplomatic posture, especially when dealing with sovereignty or human rights issues,” he stated.
Professor Yuliantoro proposed concrete strategies for Indonesia to avoid falling into a debt trap, one of which is financing diversification.
He emphasized the need to engage multilateral financial institutions and private investment as healthier alternatives for infrastructure project funding. In his view, openness is the foundation of public trust in development.
Moreover, civil society oversight can serve as a critical tool to curb the abuse of power and corruption.
“Transparency in loan negotiations and reporting must be enhanced so that the public and stakeholders can monitor openly,” he affirmed.
In conclusion, Professor Yuliantoro stressed the importance of strengthening negotiation capacity, governance mechanisms, and cross-sectoral policy synergy so that infrastructure development does not become a tool of domination.
He reminded the audience that development should be based on the needs of the people, not merely on short-term economic agendas.
“This Gordian Knot of debt cannot be untied with a single stroke, but requires precision, courage, and resolve in making decisions that uphold sovereignty and sustainability,” he concluded.
Author: Triya Andriyani
Post-editor: Lintang Andwyna
Photographer: Donnie Trisfian