Malaysia, Indonesia Seek to Ensure BRI Projects Don’t Lead to Debt Burden

Malaysia and Indonesia are actively working to guarantee that infrastructure projects linked to the Belt and Road Initiative (BRI) do not result in unsustainable debt burdens, learning from past experiences, especially that of Sri Lanka.

Transport Minister Anthony Loke of Malaysia emphasized that the progress of their respective countries should align with China’s BRI strategies, promoting shared prosperity and equitable cooperation. Both nations are determined to avoid the pitfalls of previous BRI projects that left some countries in debt.

Debt Burden

Indonesian President Joko Widodo, often known as Jokowi, stressed the importance of equal partnership and shared benefits in the BRI. He highlighted the need for synergy in BRI projects to give host countries a sense of ownership in their implementation. The emphasis is on ensuring the long-term sustainability of BRI projects while strengthening the economic foundation of partner countries.

The Belt and Road Initiative, launched by China a decade ago, aims to connect Asia with Africa and Europe through extensive infrastructure and energy development. Critics have expressed concerns about the potential for BRI projects to result in debt dependency and the expansion of China’s geopolitical and economic influence.

One notable example is Sri Lanka, which faced challenges in repaying its substantial debt, with over half owed to China, its largest lender. By addressing these concerns and ensuring responsible project implementation, Malaysia and Indonesia aim to provide their populations with the assurance that they will not face similar debt-related issues, signaling a new approach to BRI cooperation in the region.

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