Indonesia cannot claim solidarity with Palestine while partnering with BlackRock

In a nation where political leaders proudly invoke the spirit of anti-colonialism, and where support for Palestine is a deeply held conviction across ideological lines, Indonesia now stands at a moral crossroads.

Recent reports confirm that the Indonesian sovereign wealth fund, Danantara, is courting cooperation with BlackRock, the world’s largest asset manager, in what is described as a strategic partnership to bolster infrastructure, energy transition, and economic growth. CEO Rosan Roeslani’s visit to BlackRock headquarters in New York has already been hailed by some as a breakthrough for Indonesia’s economic aspirations.

But let us be clear: no amount of investment return can sanitize blood-soaked profits.

BlackRock is not just another multinational financial institution. It is a direct investor in the machinery of war—holding significant shares in Lockheed Martin, Northrop Grumman, and RTX, all of which are central to Israel’s military operations in Gaza. Lockheed Martin’s F-35 fighter jets, Northrop’s missile launchers, and RTX’s Iron Dome have all played pivotal roles in the ongoing onslaught that has claimed tens of thousands of civilian lives in Palestine, including women, children, and journalists.

As of 2025, BlackRock owns a 7.4 per cent stake in Lockheed Martin—whose CEO recently boasted that wars in Ukraine and Gaza are key revenue drivers. These are not passive investments. They are political positions disguised as portfolio strategies.

For Indonesia—a country whose founding principles explicitly reject colonialism “in all its forms”—a partnership with BlackRock is a betrayal. It is a betrayal of the 1945 Constitution, a betrayal of our diplomatic legacy under Sukarno and Hatta, and above all, a betrayal of our people’s conscience.

The argument made by proponents of the partnership is predictable: investment is necessary, development is urgent, and BlackRock offers unmatched financial expertise. Legislators, such as the Prosperous Justice Party’s Muhammad Kholid, walk a careful line, acknowledging the need for foreign capital while urging “value alignment.” Yet such hedging amounts to moral evasion. The question is not whether BlackRock can help grow Indonesia’s economy. The question is: at what cost?

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The cost, in this case, is complicity. Complicity in a war that much of the world now recognizes as genocidal in nature. While campuses across America are erupting in protest and European governments are reassessing ties with Israeli-linked entities, Indonesia is flirting with the financiers of occupation.

One cannot separate capital from conscience. BlackRock’s portfolio speaks louder than its public relations. Its investments directly empower a regime that has turned Gaza into a graveyard. It doesn’t matter if BlackRock’s funds are earmarked for digital infrastructure or renewable energy. Money is fungible, and partnership legitimizes. By shaking hands with BlackRock, Indonesia lends moral cover to an investor whose hands are already stained.

Defenders of the deal might argue that geopolitics requires pragmatism. But pragmatism should not mean moral paralysis. Our national development can be pursued without compromising on the values that define us. Qatar’s sovereign wealth fund has already signaled willingness to jointly invest $4 billion with Danantara. Why not deepen ties with ethical partners, rather than invite into our home a corporation that bankrolls bombs raining down on Gaza?

More importantly, such deals make a mockery of Indonesia’s global voice. President Prabowo Subianto has spoken out against the atrocities in Gaza. But words ring hollow if, in the same breath, Indonesia turns to the financiers of those very atrocities for economic salvation. Foreign policy and financial policy cannot operate on separate moral tracks.

Some might say Indonesia is too small to challenge the financial giants of the world. But history says otherwise. As the world’s largest Muslim-majority nation, and a long-standing supporter of Palestinian self-determination, Indonesia has a moral capital that few nations possess. To waste it now, for a short-term infusion of capital, would be a grave mistake.

This is not about anti-Americanism or economic isolationism. It is about coherence. It is about refusing to look away while Gaza burns, simply because a lucrative opportunity knocks.

Danantara’s leaders must decide: Do they want Indonesia to be remembered as a nation that sold its conscience for capital? Or as a country that stood firm, even when compromise looked profitable?

The answer should be obvious to anyone who believes in the ideals etched into our Constitution and echoed in our mosques, our streets, and our foreign policy platforms.

Indonesia must walk away from BlackRock. Not because it’s easy. But because it’s right.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.