Abstract: Against the backdrop of a structural crisis in the Western development paradigm and the gradual decline of traditional aid systems, the South-South cooperation model—as exemplified by Sino-Indonesian development cooperation—is playing an increasingly important role in the global development governance landscape. This paper traces the historical evolution of Sino-Indonesian development cooperation since the establishment of diplomatic relations in 1950, dividing it into three phases: aid cooperation driven by political solidarity (1950–1967), pragmatic cooperation driven by mutual benefit (1990–2013), and the institutional transformation toward a development-oriented cooperation paradigm (2013 to present). Building on this, the paper systematically analyzes the structural characteristics of the Sino-Indonesian cooperation model from four dimensions—strategic alignment, development orientation, multi-domain synergy, and shared interests—and highlights that its core lies in prioritizing infrastructure construction and industrial capacity enhancement. Through national strategic coordination and multi-layer financing mechanisms, this model drives Indonesia’s structural transformation from a resource-exporting country to an industrial manufacturing nation, rather than relying on institutional reform as a prerequisite for development. This paper argues that this “development capacity-oriented cooperation paradigm” has, to a certain extent, complemented traditional Western development models, offering Global South countries a cooperative pathway that balances policy autonomy with development effectiveness. However, its broader adoption remains constrained by multiple factors, including economic complementarity, governance capacity, and geopolitics.

Keywords: Development cooperation; Multistakeholder governance; Global South