Toward Decline
Indonesia’s US$8 million visa scandal threatens drive for talent, investors
South China Morning Post Major outlet·2026-06-12PacificP5: Strategic DecouplingP7: Alliance Architecture
Why it matters
Indonesia's institutional weakness in governance and investor confidence directly undermines its role as a stable Indo-Pacific counterweight to Chinese influence and as a potential partner in regional security frameworks. Reduced FDI and talent inflow weaken Indonesia's economic resilience and capacity to resist strategic coercion, indirectly shifting the balance of power toward Beijing and narrowing Australia's coalition-building options in Southeast Asia.
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