Mitigating social-ecological risks from the surge in China’s overseas investment: an Indonesian profile

Abstract

Rapid development has become a global priority as countries strive to meet the UN Sustainable Development Goals by 2030. Sustainable development is crucial for increasing human well-being in emerging economies while avoiding perverse outcomes on livelihoods, biodiversity, and ecosystem services. China’s Belt and Road Initiative (BRI) promises to help countries reach their national goals for economic growth, trade, and development, but there remain widespread concerns over how this boom in Chinese foreign direct investment (FDI) will impact social-ecological systems. Here, we discuss the risks implicit in BRI-related FDI projects to ecosystems and local communities, and how these risks can be mitigated or exacerbated by national governance of BRI projects and national development policies. We frame our discussion around Indonesia, where convoluted governance of some of the largest Chinese FDI projects may reduce accountability, and a recent job creation law brings risks of rapid unsustainable development practices across this biodiversity hotspot.