Economic Statecraft and Strategic Hedging: A Neoclassical Realist Analysis of Qatar’s Housing Investment in Indonesia

Ilham Dary Athallah; Hayara  Khairia; Tsabita Husna; Ronna Rihadatul  Aisy; Zaskia Nurwati  Azzahra

doi:10.63919/surau.v2i2.125

Authors

Ilham Dary Athallah Universitas Islam Negeri Sunan Ampel, Surabaya, Indonesia https://orcid.org/0009-0007-9845-8317
Hayara Khairia University of Western Australia, Perth, Australia https://orcid.org/0009-0004-9986-7284
Tsabita Husna Universitas Gadjah Mada, Yogyakarta, Indonesia https://orcid.org/0009-0003-5529-3138
Ronna Rihadatul Aisy Universitas Islam Negeri Sunan Ampel, Surabaya, Indonesia https://orcid.org/0009-0001-6470-0052
Zaskia Nurwati Azzahra Universitas Islam Negeri Sunan Ampel, Surabaya, Indonesia https://orcid.org/0009-0008-2210-6697

DOI:

https://doi.org/10.63919/surau.v2i2.125

Keywords:

Economic Statecraft, Classical Realism, Qatar-Indonesia Relations, Balance-of-Partnership Diversification, South-South Development Cooperation.

Abstract

This study examines Qatar’s investment in Indonesia’s one million homes program (2024–2026) through the lens of classical realism to reveal the strategic calculations underlying development cooperation between Gulf states and Southeast Asia. Against the backdrop of Indonesia’s acute housing deficit and Qatar’s surplus capital, this research addresses a gap in understanding how power dynamics and national interest shape South-South development finance. Employing a qualitative explanatory single-case design with process tracing and document analysis, this study systematically examines official documents, media reports, and think-tank analyses from December 2024 to March 2026. The findings demonstrate that Qatar’s investment serves as economic statecraft to project geopolitical influence and compensate for military limitations, while Indonesia leverages foreign capital as a self-help mechanism to address domestic stability threats and preserve strategic autonomy through partnership diversification. The study concludes that even apparently altruistic development partnerships are fundamentally shaped by power calculations and interest-balancing. This research contributes a realist account of Gulf-Asia relations and introduces the concept of “balance-of-partnership diversification” as a framework for understanding how middle powers maintain autonomy in an anarchic international system. The findings offer policy guidance for managing the strategic dimensions of development finance, emphasizing the importance of diversified partnerships and delivery credibility.

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