Pelaut ADIPATI l Kalitbang INDOMARITIM l Direktur Eksekutif TRUST l Presiden SPI l Volunteer INMETA
The 2025 National Defense Authorization Act signed on Dec. 23 by President Joe Biden allocates $3 billion to a 2020 FCC “rip and replace” provision to help telecom firms remove and replace equipment in response to ongoing Chinese hacking campaigns, The Record reported Dec. 24.
The signing of the National Defense Authorization Act (NDAA) FY 2025 by President Joe Biden on December 23, 2024, marked a new chapter in the United States’ (U.S.) defense strategy. With a budget allocation of $895.2 billion, the NDAA encompasses various significant measures to bolster national security, including a $3 billion “Rip and Replace” provision aimed at replacing Chinese-made telecommunications equipment deemed risky. This initiative reflects the U.S.’s firm response to China’s escalating hacking campaigns and underscores Washington’s commitment to safeguarding critical infrastructure in an era of advanced technological threats. Moreover, this policy has far-reaching implications for the Asia-Pacific region, including Indonesia, which is increasingly exposed to global security dynamics.
U.S. Efforts to Mitigate Cybersecurity Threats
The “Rip and Replace” provision is part of the U.S.’s broader effort to reduce reliance on Chinese-made hardware, such as Huawei and ZTE, which have long been considered potential national security threats. This initiative, which began in 2020 through an FCC program, previously faced funding challenges. Recent cyberattacks by groups such as Volt Typhoon and Salt Typhoon, which infiltrated U.S. telecommunications networks, have created an urgent need to accelerate this policy’s implementation.
With an additional $3 billion included in the NDAA FY 2025, the U.S. aims to secure its domestic telecommunications networks and foster a more self-reliant technology ecosystem. This move aligns with broader U.S. national security strategies, including strengthening cybersecurity and information command. According to Trust Indonesia CEO Azhari Ardinal during a discussion forum organized by Trust for Justice, this U.S. policy impacts not only the domestic front but also carries significant implications for countries in the Asia-Pacific. This region is a major geopolitical battleground between the U.S. and China, where telecommunications technology plays a strategic role.
Pressure to Reduce Dependence on Chinese Technology
Many Asia-Pacific nations, including Indonesia, have adopted Chinese-made equipment for their telecommunications infrastructure needs. Competitive pricing and technological advancements have made companies like Huawei a primary choice for developing countries. However, with increasing pressure from the U.S., these nations may face a difficult choice between maintaining economic ties with China or prioritizing national security.
For example, Indonesia, which is currently developing its 5G network, could use this U.S. policy as an opportunity to reassess its reliance on Chinese technology. If the U.S. extends technological assistance to strategic partners in the region, Indonesia stands to benefit from this support to enhance its digital security.
Opportunities for Cybersecurity Cooperation
Reliance on Chinese technology also opens the door for closer cybersecurity cooperation between the U.S. and Asia-Pacific countries. As part of its Indo-Pacific strategy, the U.S. could offer technical assistance, training, or even technology transfers to strengthen the digital infrastructure of its allies.
Indonesia, which has demonstrated its commitment to strengthening its cybersecurity defenses, could seize this opportunity. Collaboration in the form of intelligence sharing, cybersecurity training, and the development of joint security standards could be a strategic step to bolster resilience against cyber threats.
Changes in Economic and Technological Dynamics
The U.S.’s efforts to reduce China’s technological dominance could also reshape the telecommunications market dynamics in the Asia-Pacific. Many countries, including Indonesia, face challenges in finding alternatives that match the low-cost solutions offered by Chinese companies. However, in the long term, diversifying technology sources could strengthen the region’s economic and security resilience.
Indonesia: Challenges and Opportunities
As one of the largest developing economies in Southeast Asia, Indonesia stands at a crossroads between maintaining good relations with China and leveraging opportunities to strengthen its strategic ties with the U.S. The “Rip and Replace” policy offers important lessons for Indonesia:
1. Technology Diversification : Indonesia must reduce dependence on technology from a single source, including China, to safeguard its digital sovereignty. The government could use this opportunity to promote domestic innovation and partner with Western nations in developing secure technologies.
2. Strengthening Cyber Infrastructure : The growing threat of cyberattacks necessitates concrete steps to protect strategic sectors such as energy, transportation, and communication. The U.S. policy could inspire Indonesia to develop more comprehensive cybersecurity systems.
3. Bilateral Cooperation : Indonesia can leverage its strong ties with the U.S. to access the technical assistance or training needed to enhance its cybersecurity capabilities. In the long term, this could strengthen Indonesia’s position in addressing regional security challenges.
The “Rip and Replace” policy in the NDAA FY 2025 reflects the U.S.’s commitment to addressing cybersecurity threats and protecting critical infrastructure. This initiative not only strengthens U.S. defenses but also has significant impacts on the security and economic dynamics of the Asia-Pacific region. For Indonesia, this policy provides opportunities to enhance its digital infrastructure, expand international cooperation, and reduce dependence on Chinese technology. However, the success of these efforts will largely depend on Indonesia’s ability to balance its national interests amid intensifying geopolitical competition.
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