JP/Ricky Yudhistira

Relations between Indonesia and China involve centuries of coexistence and cooperation. The ties between the peoples of Indonesia and China date back to many centuries ago as evidenced by Chinese influence in Indonesian culture. In the spirit of solidarity among new independent nations, Indonesia was among the first countries to recognize China, and it was 68 years ago that bilateral relations were officially established.

Over the course of history, the two countries have experienced ups and downs in bilateral relations. Nevertheless, they stay committed to moving forward. In 2005, bilateral relations between Indonesia and China reached a new momentum when leaders of the two countries signed the Joint Declaration on Strategic Partnership. Since then, bilateral cooperation between Indonesia and China has rapidly flourished in all fields.

The year 2013 marked a new chapter in Indonesia-China relations when the two nations elevated strategic partnership to a comprehensive strategic partnership. This was then concretized with the launch of the Plan of Action for the Implementation of Comprehensive Strategic Partnership 2017-2021, which is meant to translate political commitments into cooperation projects within the specific timeframe.

Five years on, the Indonesia-China comprehensive strategic partnership continues to enhance. The year 2015-2017 witnessed an increasing number of high-level engagements, including mutual visits and strategic consultations between leaders of the two countries; the convening of third annual high-level dialogues at the level of coordinating minister/state councillor, namely on (1) political and security cooperation, (2) economic cooperation and (3) people-to-people exchange; the Joint Commission for Bilateral Consultation (JCBC) co-chaired by the two foreign ministers; and other ministerial and senior official consultation mechanisms in various fields. Neither Indonesia nor China has such comprehensive bilateral consultation mechanisms with other nations. The inter-parliamentary visits have also contributed to the enhancement of Indonesia-China bilateral ties and deepening of mutual understanding.

In the past three years, increasing two-way trade, investment and tourism cooperation reflects the growing Indonesia-China comprehensive strategic partnership. China continues to be Indonesia’s largest trade partner with trade value, based on Indonesian statistics, reaching US$58.82 billion in 2017, up 24 percent from 2016. Indonesia was China’s largest supplier for HS code 15 products, including animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable wax. However, the biggest challenge remains on how to realize strong growth and balanced two-way trade. Indonesia expects China to boost imports from Indonesia as a means to reduce Indonesia’s trade deficit with China.

On investment, Chinese investment in Indonesia grew five times from $628 million in 2015 to about $3.4 billion in 2017 - making China the third-largest foreign investor in Indonesia. To increase the value of foreign investment, the Indonesian government works tirelessly to improve infrastructure connectivity and advance digital industries. This effort seems to have paid off, as the investment climate in Indonesia has significantly ameliorated. This year, Indonesia jumps to 72nd place in the World Bank’s Global Ease of Doing Business report. Concurrently, Moody’s has affirmed Indonesia’s rating from positive to stable and the government bond rating at moderate credit risk. This achievement definitely lays a solid foundation for foreign investment in Indonesia.

Encouragingly, in the area of people-to-people contact, Indonesia is one of China’s favorite tourist destinations. More than 2 million Chinese tourists visited Indonesia in 2017 - making China the largest contributors of foreign tourists to Indonesia. With the establishment of “10 New Balis”, the number of Chinese tourists visiting Indonesia is expected to grow significantly.

Over the past five years, bilateral cooperation in the fields of education, health and cultural exchange have intensified significantly. There are currently eight Indonesian studies centers in universities all over China and Chinese Studies has become a popular major in universities in Indonesia. Today, there are around 14,000 Indonesian students in China.

Bilateral cooperation also covers the most challenging areas, such as political, defense and security. In recent years, cooperation in these areas has been developing steadily. The defense industry, navy-to-navy talks and combating transnational organized crimes, which include drug trafficking and online fraud, are among the highlights.

Overall, Indonesia and China have experienced a steady growth in bilateral relations. It is worthy to note that the year 2018 marks the fifth anniversary of the Indonesia-China Comprehensive Strategic Partnership and the commencement of synergy between Indonesia’s vision of the Global Maritime Fulcrum and China’s Belt and Road Initiative.

As great nations, Indonesia and China are building their partnership beyond the bilateral context. Both are determined to push forward regional integration with ASEAN as the driving force. In light of this, Indonesia is confident that China will be supportive of its Indo-Pacific Cooperation Framework. This framework of cooperation is meant to realize inclusiveness, transparency and compliance with international law in the Pacific and Indian Oceans regions, engineered by ASEAN-led mechanisms. Indonesia considers China’s involvement in the Indo-Pacific Cooperation Framework indispensable. China’s constructive role in these vibrant regions is positively welcomed.

Given all of these achievements and positive developments in Indonesia-China relations, the two countries have immense potential to enhance their partnership in the future. We should neither be complacent nor take it for granted. We should redouble our effort to overcome all the challenges in bilateral relations and contribute to regional and global peace, stability and security. Together we can!
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The writer is the ambassador of Indonesia to China

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