JAPAN FOREIGN ECONOMIC ASSISTANCE: THE IMPLEMENTATION OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) UNDER SHINZO ABE ADMINISTRATION FOR INDONESIA INFRASTRUCTURE DEVELOPMENT (2014-2016) By DAYUANA NILAM KASIH 016201400039 A thesis presented to the Faculty of Humanities President University In partial fulfillment of the requirements for Bachelor Degree in International Relations Major in Diplomacy Studies March 2018 i ii iii ABSTRACT Title: Japan Foreign Economic Assistance : The Implementation of Official Development Assistance (ODA) under Shinzo Abe Administration for Indonesia Infrastructure Development (2014-2016). Development assistance becomes an important issue in international relations today. Through development assistance, donor countries and related agency can contributes to the development of politic, economic and social in developing countries. This research explains about the role of Japan’s Official Development Assistance (ODA) for Indonesia infrastructure development. The time period of this research is during President Joko ‘Jokowi’ Widodo’s leadership from 2014 to 2016. This research is classified into analytical and descriptive research that using qualitative as the research methodology. The result of this research shows that Japan’s contribution through ODA is in line with the policy of President Jokowi to prioritize infrastructure development in Indonesia. Infrastructure development is very essential to increasing Indonesia’s competitiveness as well as to facilitating better business and industry environment. Other than that, infrastructure development can strengthening regional integration of Southeast Asia. In other word, ODA is very important to bridge diplomatic relations between Japan and Indonesia. Keywords: Development Assistance, Official Development Assistance (ODA), Infrastructure, Competitiveness, Business and Industry Environment, Regional Integration. iv ABSTRAK Judul: Bantuan Ekonomi Luar Negeri Jepang: Implementasi Bantuan Pembangunan Resmi (Official Development Assistance/ODA) di bawah Pemerintahan Shinzo Abe untuk Pembangunan Infrastruktur Indonesia (2014- 2016). Bantuan pembangunan merupakan salah satu isu yang penting dalam hubungan internasional saat ini. Melalui bantuan pembangunan, negara-negara pendonor dan lembaga yang berkaitan dapat memberikan kontribusi untuk pembangunan politik, ekonomi dan sosial negara-negara berkembang. Penelitian ini menjelaskan tentang peranan Bantuan Pembangunan Resmi atau disebut juga dengan Official Development Assistance (ODA) Jepang dalam pembangunan infrastruktur di Indonesia. Jangka waktu yang diambil untuk penelitian skripsi ini adalah selama pemerintahan Presiden Joko ‘Jokowi’ Widodo dari tahun 2014 sampai dengan 2016. Penelitian ini adalah penelitian yang bersifat analitis dan deskriptif dengan menggunakan metode penelitian kualitatif. Hasil penelitian ini menunjukkan bahwa kontribusi Jepang melalui ODA sangat mendukung kebijakan Presiden Jokowi dalam memprioritaskan pembangunan infrastruktur di Indonesia. Pembangunan infrastruktur sangat penting untuk meningkatkan daya saing Indonesia serta memfasilitasi lingkungan bisnis dan industri yang lebih baik. Selain itu, pembangunan infrastruktur juga dapat meningkatkan integrasi regional kawasan Asia Tenggara. Dengan kata lain, ODA sangat penting untuk menjembatani hubungan diplomatik antara Jepang dan Indonesia. Kata Kunci: Bantuan Pembangunan, Official Development Assistance (ODA), Infrastruktur, Daya Saing, Lingkungan Bisnis dan Industri, Integrasi Regional. v ACKNOWLEDGEMENT All praise and thanks to Allah SWT for all the blessing and grace, the one that answers to all the prayers. I would like to express my highest gratitude to His greatness in giving me the strength and courage to complete this thesis. There are many people whom I have to acknowledge for their support, help and encouragement during the journey of preparing this thesis. Therefore, the writer would like to express gratitude for: 1. The whole of my family, for the overwhelming love and care they give upon me. Especially for my late father, Irwan Hanafi and my mother, Lusia Safitri, who has supported me financially as well as morally. Dwi Mughni Saddam Hanafiah and Hazlaam Trimaha Ilhami as my brothers for their love and support. Besides that, for my aunts, Widya Astuti and Rika Sari as well as my uncle, Bung Suryana for their endless prayer and support toward me. 2. Mr. Hendra Manurung and Mr. Bustanul Arifin as my thesis advisors, for guidance and advice from the very beginning of this thesis until I can finally complete it. 3. All of lecturers in International Relations study program study of President University, for all knowledge and valuable lecture. 4. Ajeng Intan Larasati and Ajeng Listya Danastri as my best friends during university life, for staying besides me to go through freshman year, sophomore year and senior year together. 5. Yofin Elsyafitri and Hillery Melisa as my sisters, for always encourage me during thesis writing process and cheers me up whenever I was down. You two are my amazing support system. 6. Steven Wijaya, a good friend that I know since thesis supervisory. Thank you for your support and help during the process of this thesis writing. vi 7. All of my good friends in university, Ranada Hamalia, Dian Yustikadinata, Fitria Krisanti, Gabriela Adinda, Yuke Eria and Indah Suciati, for all lessons and memories of friendship. Wishing you all the best for your next choosen path of life. Finally, I would like to thank everybody who was important to the successful realization of this thesis, as well as expressing my apology that I could not mention personally one by one. Cikarang, March 2018 Dayuana Nilam Kasih vii TABLE OF CONTENTS THESIS ADVISER RECOMMENDATION LETTER ..................................... i DECLARATION OF ORIGINALITY ............................................................... ii PANEL OF EXAMINER APPROVAL SHEET ............................................... iii ABSTRACT .......................................................................................................... iv ABSTRAK .............................................................................................................. v ACKNOWLEDGEMENT ................................................................................... vi TABLE OF CONTENT ..................................................................................... viii LIST OF TABLES ............................................................................................... xi LIST OF FIGURES ............................................................................................ xii LIST OF ACRONYMS ..................................................................................... xiii CHAPTER I: INTRODUCTION ......................................................................... 1 I.1 Background of the Study ................................................................................. 1 I.2 Identification of Problem ................................................................................ 5 I.3 Statement of the Problem ................................................................................ 9 I.4 Research Objective .......................................................................................... 9 I.5 Significance the Study ..................................................................................... 9 I.6 Theoretical Framework ................................................................................. 10 I.6.1 Liberalism ............................................................................................... 10 I.6.2 Regional Integration ............................................................................... 10 I.6.3 Complex Interdependence ...................................................................... 11 I.7 Literature Review .......................................................................................... 12 I.7.1 Carol Lancaster – Foreign Aid: Diplomacy, Development, Domestic Politics ........................................................................................................ 12 viii I.7.2 Dennis D. Trinidad – Japan’s ODA at the Crossroads: Disbursement Patterns of Japan’s Development Assistance to Southeast Asia ................ 13 I.7.3 Syamsul Hadi – Japanese Diplomacy to ASEAN and Its Relevance to Indonesia .................................................................................................... 13 I.8 Scope and Limitations of the Study .............................................................. 14 I.9 Definition of Terms ....................................................................................... 14 I.9.1 Foreign Policy ........................................................................................ 14 I.9.2 Foreign Aid ............................................................................................ 15 I.9.3 Official Development Assistance ........................................................... 15 I.9.4 Global Development............................................................................... 15 I.9.5 Infrastructure .......................................................................................... 16 I.10 Research Methodology ................................................................................ 16 I.11 Structure of the Thesis ................................................................................ 17 CHAPTER I: INTRODUCTION .................................................................