OBOR: A New Hope for Future Indonesian or a New Trap? Case Study in Indonesia

OBOR: A New Hope for Future Indonesian or a New Trap? Case Study in Indonesia

Effnu Subiyanto (Widya Mandala Surabaya Catholic University, Indonesia)
DOI: 10.4018/978-1-5225-8980-8.ch007

Abstract

One Belt One Road (OBOR) first declared by the China's President is believed by some to be a new hope and a new horizon for a number of developing countries. OBOR has been viewed as a new challenging proposal and as an ice breaking for the decades-long stagnant infrastructure in Indonesia, the largest economic region in Association Southeast Asian Nations (ASEAN). This chapter is an update on OBOR's recent development in Indonesian which also coincidentally was declared as a new maritime-axis when new reform government has taken into power since 2014. Many views have been released, pro-contra has been severely dispatched into two separate blocks of Indonesian experts in two standpoints, one to support and the other to challenge involving Indonesia in the OBOR. This chapter has been thoroughly analyzed by mining information and data from big data sources, combined with semi-structured interviews of various executives and contractors.
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Energy Scarcity In China

Within last few years to come China has emerged as a global importer in the energy sector. This is a result of soaring economic growth, hovered between 9% and 10% per year for three decades since 1980, and since 2012 China still showed impressive growth of 7% to 8%. This is why China’s demand for energy is massive and propels the country to undertake energy acquisitions worldwide. Domestic energy reserve in China is scarce except in coal, but with low quality.

China became a net oil importer in 1993, a net gas importer in 2007, a net coal importer in 2008 and the first global oil importer in 2014. It means that in 2014, China has become a consumer of 30% of global oil consumption and 45% of global coal consumption. Given this enormous energy demand, China has no other option but to go overseas to secure energy supply.

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