Indonesia and China Agree to Further Boost Cooperation

Jakarta Globe, Ezra Sihite, October 3, 2013

Indonesian president Susilo Bambang Yudhoyono, second from right, and
 Chinese President Xi Jinping — accompanied by their wives — shake hands
 during their meeting at the Presidential Palace in Jakarta on Wednesday.
(AFP Photo/Bay Ismoyo)

Indonesia and China have agreed to boost cooperation in various sectors as President Susilo Bambang Yudhoyono and China’s President Xi Jinping held a talk on Wednesday in a meeting seen as crucial for enhancement of regional cooperation.

Analysts said that while efforts to enhance trade and investment dominated the talks, Xi’s decision to pick Indonesia as his first destination in Southeast Asia in the middle of many regional problems would boost Indonesia’s standing as a key country China would turn to when it has initiatives for the region.

In a joint press conference after the meeting, Xi said China has strong intentions to make its relations with Indonesia more comprehensive.

“China has agreed, together with Indonesia, to push our cooperation to a new direction which can bring prosperity to people of both countries,” he said.

As a signal of enhanced partnership, Xi said China would build a cultural center in Jakarta, and a consulate office in Bali. He also proposed the establishment of an Asian investment and infrastructure bank — which would allow nations to access funds for projects — in an effort to build interconnection and economic integration across the region.

For his part, Yudhoyono said both countries agreed to broaden their strategic partnership signed in 2005. “I believe that under President Xi’s leadership, Indonesia and China can achieve a new high in friendship and cooperation,” Yudhoyono said.

He said both countries vowed to continue boosting the current $51 billion dollar trade to $80 billion by 2015.

China is Indonesia’s largest trading partner but despite this, China’s investment in the country last year was only $2.2 billion.

Coordinating Minister for the Economy Hatta Rajasa said Chinese companies have agreed to invest $20 billion dollar in Indonesia’s mineral and gas sectors.

“Several of China’s companies have agreed to invest in Indonesia,” he said.

Yudhoyono and Xi also witnessed the signing of six agreements, including an economic cooperation agreement for the next five years, on integrated industrial park, maritime and fisheries, economic creative and space exploration.

Beside discussing economic cooperation, both leaders also discussed regional and global issues that become common concerns for both countries, including cooperation in the Asia-Pacific Economic Cooperation and on the South China Sea.

Indonesian Defense University expert Bantarto Bandoro said China could fill the space left by the United States, which could be too preoccupied by domestic concerns. US President Barack Obama’s trip to Asia next week — which includes the APEC meeting in Bali — might be curtailed because of the government shutdown.

“If Obama decides not to attend APEC in Bali, then China could steal the show,” he said.

Aleksius Jemadu, dean of Pelita Harapan University’s School of Social and Political Sciences, said China highly values its relations with Indonesia and investment as well as other concrete efforts, such as boosting trade and building infrastructure to get closer with Indonesia.

“By the end of the day, it is how Indonesians feel about how the country has helped them,” he said.

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