China sits now on the third spot in Indonesia's investment list. For years, the country has been investing in Indonesia and helping President Joko Widodo's vision to improve infrastructure development in the nation. 

Three years ago, the Asian Infrastructure Investment Bank (AIIB) began investing in Indonesia in hopes to improve the country's social and economic welfare. Throughout the years, those investments have proven to be beneficial, not only to its economy but also to its people by bringing about massive changes in their lives.

Indonesia remains the second-largest borrower of the AIIB among its 66 members. In the past three years, the bank has invested a total of 691 million U.S. dollars in five infrastructure projects, some of which include modernizing the country's irrigation system. 

This will help to advance Indonesia's agriculture, one of the backbones of the country's economy. Other projects include helping millions of people out of slum areas and developing tourism infrastructure in Lombok Island, helping to achieve the Indonesian government's goal of creating more tourist islands aside from the popular island of Bali. 

"As we know the capacity for Indonesia in domestic banks and financial markets here is very limited to support infrastructure. So, AIIB will come to give more significant influence for building this country to be better in infrastructure and the room for this organization to increase their role in Indonesia's infrastructure development is very large, it will give benefit to two parties, not only this country but AIIB itself," said Myrdal Gunarto, a Global Markets analyst. 

One of the most important projects the AIIB has invested is the eradication of slum areas across 154 major cities in Indonesia. The project is co-financed by the World Bank and the government. It was introduced in 2016 and is an on-going project expected to be completed in 2021. 

Since the inception of the National Slum Upgrading Project, many of Indonesia's urban poor have begun feeling the benefits. 

Basic necessities such as clean and safe water are now easily accessible and slum areas have been drastically changed with the improvement of urban infrastructure. It takes a couple of years to complete the project but many have been living in better conditions as a result of the investment. 

"We also see from the case of Chinese investment in Sulawesi. There's big manufacturing in the nickel industry there. Many unemployed and domestic people there gained jobs. With the Chinese investment, they absorb a lot of the domestic workers, 33,000 in just one factory, so it impacts the wellbeing and also the welfare of the people there in Sulawesi," said economist Bhima Yudhistira. 

The AIIB and local governments and communities have successfully expanded Indonesia's economic potential. With more projects and innovative solutions, the Indonesian government will be able to continue to accelerate social and economic growth in the country.