Deepening Sino-Indonesian cooperation benefits both

The G20 Summit in Bali, Indonesia, last month concluded with a declaration covering many issues including how to boost global economic recovery and overcome global challenges, minimize the impacts of the COVID-19 pandemic and the Russia-Ukraine conflict on the global economy, tackle climate change, promote digital innovation, safeguard food and energy security, realize the United Nations' Sustainable Development Goals, and facilitate global economic cooperation.

A number of economic cooperation organizations have been established over the years in the Asia-Pacific region including the Association of Southeast Asian Nations, ASEAN-Plus and the Regional Comprehensive Economic Partnership, in order to boost economic development.

The RCEP has 15 member economies — the 10 ASEAN member states, China, Japan, the Republic of Korea, Australia and New Zealand. And according to World Bank data, the RCEP represents about 30 percent of the global population and accounts for 30 percent of the global GDP.

Within the RCEP, China is Indonesia's largest trading partner, with their trade volume hitting $124 billion in 2021, and the Indonesia-China strategic comprehensive partnership has been flourishing in not only trade but also investment, tourism and people-to-people exchanges.

However, diplomatic relations between Indonesia and China have experienced ups and downs in recent times. From the presidencies of B.J. Habibie and Abdurrahman Wahid to those of Megawati Sukarnoputri, Susilo Bambang Yudhoyono and Joko Widodo, Indonesia and China have taken their relations forward based on trade and economic ties despite the odds.

Indonesia and China have a number of bilateral and multilateral economic bridges such as the ASEAN+China, the RCEP and the China-proposed Belt and Road Initiative. In fact, President Xi Jinping proposed the 21st Century Maritime Silk Road (which along with the Silk Road Economic Belt makes up the Belt and Road Initiative) while addressing Indonesian parliament in Jakarta in October, 2013. Xi told the Indonesian parliamentarians that China would focus on building trust and developing good neighborliness through the initiative and that the country is committed to a relationship of sincerity and friendship with ASEAN member economies.

Throughout history, Southeast Asia has been an important market for China and vice-versa. Indonesian President Joko Widodo has highlighted the importance of the region, especially Indonesia's geographical position, with his strategic maritime initiative called "Global Maritime Fulcrum", which complements the Belt and Road Initiative and will help boost economic development in the region.

In 2018, Indonesia and China signed memorandum of understandings to promote infrastructure cooperation. Indonesia has established several business hubs. It is also developing North Sumatra as an economic hub, North Kalimantan as an energy and mineral hub, Bali as a high-tech and creative economy hub, and North Sulawesi as a Pacific Rim economic hub.

The bilateral cooperation framework covers the development of industrial parks, power plants, waste management, transportation, ports, special economic zones, 5G and fishery. Also included in the framework are specific development projects such as the Karawang and Tangerang Industrial Park, Morowali Industrial Park and the Jakarta-Bandung high-speed railway.

In fact, the high-speed railway project is expected to be completed by the middle of next year. The project is a milestone in Sino-Indonesian cooperation and a foundation for deeper cooperation under the frameworks of the Belt and Road Initiative and the Global Maritime Fulcrum.

But despite the success of the Belt and Road Initiative and Global Maritime Fulcrum projects, some Indonesian citizens fear that the Indonesian government's over-dependence on China for its infrastructure development and investment could force Indonesia into a "debt trap", and therefore are opposed to Sino-Indonesian development projects.

As such, the Indonesian government should clearly explain to the Indonesian people the importance and benefits of Sino-Indonesian development projects before finalizing them. This will help prevent misunderstanding and false accusations. And the Chinese government should be more understanding about Indonesian people's misgivings.

To maintain healthy and beneficial cooperation, both Indonesia and China should also pay attention to intangible social issues, instead of only focusing on tangible benefits.

The synergized development framework is an avenue for economic success for both China and Indonesia. With a combined population of about 1.69 billion and GDP of about $16 trillion, China and Indonesia account for half of East Asia's economy. And together, the two G20 members can make greater contributions to the global economic development.

In short, Indonesia and China must continue to work together to boost economic development, and maintain peace and stability in the region.

Jia you Indonesia-China!

The author is chairman of the Association of Indonesia-China Economic, Social and Cultural Cooperation.