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n an effort to defuse tensions with China over its claim to maritime rights in the Natuna Sea, a government official has said Indonesia is open to foreign investment in a possible co-development scheme for the fisheries sector in the area.

Coordinating Political, Legal and Security Affairs Minister Luhut Pandjaitan wants to look beyond the skirmishes with Beijing and focus on development projects with other countries, including China, in the waters around the Natuna Islands, one of a few areas in Indonesia that is still rich in fisheries resources.

Indonesia is looking to benefit from foreign investment in order to increase its output in the fisheries processing industry, particularly if it will help ease tensions with China, Luhut told reporters on Wednesday.

“I think we’ll leave it if Chinese companies want to invest in Indonesia. We are very welcome. We can establish a joint [venture] company [so then they can contribute to the industry],” he said, emphasizing that the offer was also open to other countries.

Jakarta is currently trying to pull off a political balancing act of sorts with Beijing by on the one hand asserting the importance of the rule of law while also softening the blow of a recent ruling against China by an international tribunal.

China, whose historical stake in the South China Sea was recently shot down by the Permanent Court of Arbitration, has repeatedly tried to get Indonesia to acknowledge its “maritime rights and interests” in Indonesia’s exclusive economic zone (EEZ) in the Natuna Sea.

Foreign Minister Retno LP Marsudi leveled a strong protest against Beijing earlier in March when Chinese coastguard vessels were found to have obstructed justice as local law enforcers tried to impound a Chinese fishing vessel poaching in the Indonesian EEZ not far from the Natuna Islands.

Beijing claimed the area to be part of China’s “traditional fishing grounds”, and has kept on sending its fishermen as a projection of their presence there.

The Natuna Islands lie at the southernmost tip of the South China Sea, in which China has expansive claims over various maritime features, competing with the likes of Vietnam, Malaysia, Brunei Darussalam and the Philippines.

Indonesia is not a claimant in the South China Sea dispute, but is taking a keen interest in maintaining regional peace and stability, which goes beyond national interest and is related to Southeast Asia’s economic growth and development.

Luhut reiterated the government’s position that Indonesia had no dispute with China in Natuna, but acknowledged there was a need to tone down the back-and-forth bickering.

The government, well aware that international law does not recognize China’s claims, has vigilantly upheld the rule of law by enforcing regulations and reinforcing national security measures on the country’s outskirts.

Now Jakarta has decided to use this momentum to develop the region, which has for a long time escaped the view of policymakers.

“In last week’s Cabinet meeting it was decided that we need to establish our own fish market over there, an international one like [Japan’s Tsukiji fish market],” said Luhut.

It is not yet known how Luhut’s offer will be seen by the Maritime Affairs and Fisheries Ministry, particularly given Maritime Affairs and Fisheries Minister Susi Pudjiastuti’s tough stance on countries from which poachers originate.

A ministry official confirmed the plan to develop Natuna but insists it still required further study. Susi is set to survey the area with her team on Friday.