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Indonesia's Taiwan conundrum: Why we should do more to maintain the status quo
Indonesia should make it very clear that even though it agrees that Taiwan is a part of China, it only supports peaceful reunification.
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A man walks past a logo of Taiwan Semiconductor Manufacturing Company (TSMC) on June 6, 2023, during a shareholder meeting in Hsinchu, Taiwan. Taiwanese chip giant TSMC said on August 8, 2023, that its board had approved a US$3.8 billion investment in a factory in Germany, as well as a capital injection of $4.5 billion to its Arizona plant. (AFP/Sam Yeh / )
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ndonesia adheres to the One China Policy, meaning that Taiwan is the sovereign right of China, a position that is shared by nearly all the world’s nations. But that does not mean that we cannot continue to foster economic relations with Taiwan.
It would be wrong to conclude that Indonesia has a limited interest in maintaining peace in the Taiwan Strait. Any armed conflict in the Taiwan Strait will impact Indonesia, directly or indirectly, given the large size of its diaspora on the island and the central position of Taiwan in the world semiconductor supply chain. And with tensions rising in the area, Indonesia should not remain silent.
The size of Indonesia's diaspora on the island should not be underestimated. According to the Taiwanese government, there are around 250,000 Indonesian students or migrant workers in Taiwan. The harrowing experience of evacuating a handful of Indonesian citizens from combat zones in Afghanistan and Ukraine should wake the Indonesian foreign policy elite of the enormous resources needed to evacuate a quarter of a million Indonesian citizens.
However, Indonesia's interests go beyond consular concerns to a broader economic interest to ensure the smooth flow of the world’s semiconductor supply chain. The Taiwan Semiconductor Manufacturing Company (TSMC) produces 60 percent of all semiconductors worldwide and 90 percent of the most advanced semiconductors. Any armed conflict would disrupt TSMC production, and factories worldwide would find it challenging to procure semiconductors.
In 2021, Indonesia only imported US$279 million worth of semiconductors from Taiwan. However, Indonesia's electronic imports from other countries may also depend on Taiwan's steady flow of semiconductors. Industries in Indonesia would be severely disrupted if they did not have access to the most advanced chips to conduct maintenance.
Therefore, Indonesia should make it very clear that even though it agrees that Taiwan is a part of China, it only supports peaceful reunification.
China could not claim that Indonesia supports its war against Taiwan by only citing Indonesia's position that Taiwan is a part of China. Indonesia would have an easier time opposing a Chinese invasion of the island, given that it would be against Indonesia's policy of only supporting peaceful reunification.
