V

arious sectors in Indonesia could benefit from Taiwan’s New Southbound Policy (NSP) without jeopardizing its relations with China because the policy is not a diplomatic one.

This view was expressed by experts at a public discussion held by the Habibie Center in Jakarta on Tuesday.

Ibrahim Yusuf, the chairman of the Indonesian Council on World Affairs, said various memorandums of understanding (MoUs) signed by China and Indonesia stated that Indonesia could have economic and trade cooperation with Taiwan.

Since Indonesia and Taiwan do not have diplomatic relations, Indonesia had to navigate the diplomatic challenges that maintain that all visits be unofficial and it does not sign any documents with or use the term Republic of China, he said.

“Of course, they [China] will be mad, but we have to argue that we have an agreement and Indonesia’s relations with Taiwan are increasing,” Ibrahim added.

The policy is aimed to diversify Taiwan’s outbound investment away from mainland China to other regions by trying to strengthen Taiwan’s relations with the 10 ASEAN countries, six South Asian countries — India, Pakistan, Bangladesh, Nepal, Sri Lanka and Bhutan — Australia and New Zealand.

With this policy, Taiwan could help Indonesia in several sectors, such as comprehensive health care, the environment, industry, agriculture, projects with young people, and many others, said Alan Hao Yang, the executive director of the Taiwan-Asia Exchange and director of the Center for Southeast Asian Studies at National Chengchi University Taiwan.

He added that Taiwan was seeking partnerships, which was why the policy was about connecting with other countries, making new friends and integrating relations between Taiwan and Indonesia.

The policy’s target in Indonesia this year is an integrated agricultural demonstration zone in Karawang, West Java.

“If the target is successful, we would like to spread this model to different regions, not only in Java, but in Sumatra, Kalimantan and other regions,” Hao Yang said.

A report by the Washington-based Centre for Strategic and International Studies’ (CSIS) China Power Project states that the policy is designed to leverage Taiwan’s cultural, educational, technological, agricultural and economic assets to deepen its regional integration.

It would offer education, health care, training, innovation, entrepreneurship, and many more, according to Derek Mitchell, a senior adviser at the CSIS.

Shinta Widjaja Kamdani, the vice chairwoman for international relations at the Indonesian Chamber of Commerce and Industry (Kadin), said Indonesia and Taiwan have a positive partnership.

The policy could create trade agreements between Indonesia and Taiwan, improve their people-to-people relations, strengthen resources and manufacturing and reform the economy, she added.

“There is a rapid increase of investment from Taiwan to Indonesia,” Shinta said.

Taiwan’s investment in Indonesia reached US$39 million in the first half of this year, with 84 projects, according to the Investment Coordinating Board (BKPM).

Scott Kennedy, the deputy director of the Freeman Chair in China Studies at the CSIS, said the policy was not in competition with China’s Belt and Road initiative.

“It’s not a political initiative, but more economic-social,” he added.

The policy was designed to develop relations without diplomatic ties, said Bonnie Glaser, the China Power Project’s director.

“China shouldn’t dictate Indonesia’s economy,” she added.