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China-Indonesia Monthly Brief: April 2024

  • Indonesia opens first direct shipping route to China: On March 31, the Batam Island Authority in Indonesia officially inaugurated the direct shipping route from Batuampar Port to Guangzhou and Shenzhen, China, aiming to bolster trade between the two nations. This initiative, spearheaded by Persero Batam and the Batam Concession Agency in collaboration with SITC International Holdings, a Hong Kong-based shipping logistics company, utilizes the MV SITC Hakata vessel with a capacity of 1,000 TEUs. The direct route is projected to reduce transportation costs by up to $600 compared to transiting through Singapore.
  • The International Association of Fuqing Clansmen Limited Anniversary Celebration and China-Indonesia “Two Countries, Twin Parks” Promotion Conference held: From April 1 to 4, the Fuqing International Clan Association’s Anniversary Celebration and China’s “Two Countries, Twin Parks” Promotion Conference were held in Fuqing, Fujian province. This marked the 35th anniversary and the 9th Council Member Representative Congress of the association with the theme of “Unity and Love for the Motherland, Carrying on Traditions While Innovating for the Future”. A promotional conference for the China-Indonesia “Two Countries, Twin Parks” project was simultaneously held during the congress. The event also featured the signing of ten projects in various sectors such as technology, finance, agriculture, and real estate. These signings represent a new milestone, pushing Fuqing’s international trade, economy, and cultural exchanges to new heights.
  • Indonesia’s Prabowo meets China’s Xi on First Visit Since Election: From March 31 to April 2, President-elect Prabowo Subianto embarked on his first overseas visit since winning Indonesia’s presidential election in February, upon an invitation from President Xi Jinping of China. During the visit, President Xi extended congratulations to Prabowo and emphasized the high quality of recent bilateral cooperation, notably citing the Jakarta-Bandung High-Speed Rail project. Prabowo reiterated his commitment to fostering Indonesia-China relations, endorsing President Joko Widodo’s policies of friendship with China. Discussions also centered on enhancing cooperation in economics, trade, maritime security, and poverty alleviation, with particular emphasis on defense industry collaboration. Notably, Indonesian Defense Minister Prabowo also met with his Chinese counterpart, Dong Jun, to discuss defense cooperation, marking a significant step towards strengthening military ties between the two nations.
  • Chinese Foreign Minister Wang Yi visits Indonesia: Chinese Foreign Minister Wang Yi paid a visit to the Indonesian presidential palace on April 18, engaging in discussions with President Joko Widodo. The meeting, which followed Wang Yi’s prior discussion with Indonesian Foreign Minister Retno Marsudi, focused on deepening investment cooperation, particularly in downstream industries, infrastructure development, manufacturing, energy transition, and food security. The visit underscores China’s status as Indonesia’s largest trading partner and a significant foreign investor, with bilateral trade reaching over $127 billion last year. Both nations reaffirmed their commitment to fostering mutually beneficial and respectful relations. The meeting between Jokowi and Wang Yi discussed the Middle East conflict, mutually beneficial economic cooperation in product export access, food security, and Surabaya fast train, as well as IKN. in the discussion in the economic field, Jokowi hopes that China will open access for Indonesia to export products to China. Furthermore, Jokowi explained about the Jakarta-Bandung high-speed train issue to encourage technology transfer, as well as the completion of the feasibility study for the Surabaya route extension to be accelerated.
  • China-Indonesia High-Level Dialogue Strengthens Bilateral Cooperation:  The Fourth Meeting of the China-Indonesia High-Level Dialogue Cooperation Mechanism, held on April 19, witnessed comprehensive discussions aimed at enhancing pragmatic cooperation across all sectors. Chinese Foreign Minister Wang Yi and Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan reaffirmed their commitment to building a community with a shared future. Wang Yi said China has always regarded Indonesia as a partner with common goals for development and a good partner for cooperation, and has always viewed and developed friendly relations with Indonesia from a long-term strategic perspective. He also urged China and Indonesia to oppose unilateralism and protectionism, and defend the legitimate development rights of both countries, as well as maintain a normal international economic and trade order. During the meeting, the two sides fully reviewed the progress and confirmed the direction of their cooperation in various fields, and agreed to strengthen the links between relevant departments, ensure effective project implementation, and push for greater results in their comprehensive strategic cooperation.
  • RI Invites China to Help Plant Rice, Here’s Bulog’s Response: During the China-Indonesia High-Level Dialogue Cooperation Mechanism, Indonesia invites China to cooperate in the fields of agriculture and agriculture. The cooperation includes research on strengthening the quality of agricultural products and technology transfer. According to Luhut, the rice technology owned by China already has evidence as a producer of 10 tons of rice per hectare (ha). China has considerable potential in the management of 350,000-500,000 ha of land in Pulang Pisau, Central Kalimantan. Luhut stated that if Indonesia uses the technology from China, it will get an additional rice production of around 2 million tons. Luhut believes that the Chinese technology, if used on an area of 300,000 ha, can produce 6 tons of rice per ha. Experts, however, argue that the cooperation is considered unrealistic and will repeat the failure of President Soeharto’s era that occurred during the last 3 decades. According to the Indonesian government, cooperation with China will help in overcoming the national rice problem. In contrast to the government’s point of view, experts in Indonesia doubt its success, saying that this cooperation is part of a food estate project.
  • Indonesia-China Agree to Support Palestine’s UN Membership: During Wang Yi’s visit to Jakarta, Indonesia and China have pledged full support for Palestine’s bid to join the United Nations, with Indonesian Foreign Minister Retno Marsudi underscoring the pivotal role of resolving the Palestinian issue in achieving stability in the Middle East. During a meeting in Jakarta, Retno and Wang Yi expressed shared views on the situation in the Middle East, advocating for a ceasefire in Gaza and endorsing a two-state solution to the Israeli-Palestinian conflict. Indonesia expects China to leverage its influence to mitigate tensions and prevent further escalation in the region.
  • China and Indonesia Agree to Strengthen Cooperation to Support Vocational Education:  The Coordinating Ministry for Human Development and Culture (Kemenko PMK), the Ministry of Education, Culture, Research, and Technology, and the Indonesian Polytechnic Directors Forum are cooperating with China in the field of vocational training and education. Indonesia and China made the Annual Conference on Vocational Education Cooperation and Development as evidence of the realization of cooperation between China and Indonesia. Warsito, as the head of the National Vocational Coordination Team (TKNV), stated that the event is very important to harmonize matters related to vocational education. The Annual Conference is a platform used to enhance Indonesia-China cooperation between vocational universities and industry. The Annual Conference was attended by 13 vocational universities from China, 54 vocational universities from Indonesia and China who attended online, 37 state polytechnics, 1 community academy from Indonesia, and 7 industries.
  • Indonesian Scholars Warmly Welcome Visit to China:  A delegation of scholar representatives from Indonesia’s leading university think tanks visited Shanghai, Xi’an, and Beijing from April 19. During the visit, they had discussions and exchanged views with scholars from China. Sino-Indonesian economic and trade cooperation was a frequent topic of discussion during the exchanges.
  • Chinese Factories in Indonesia Were Uncovered as Rogues:  Zulkifli Hasan, Minister of Trade, explained that many companies that move their operations to Indonesia to invest and create jobs do not comply with the Indonesian National Standard (SNI) rules. Indonesia still tolerates 40 rogue companies from China on the condition that these companies must comply with the regulations in Indonesia. One of the companies from China that became the target of surveillance conducted on March 6, 2024, by the Directorate General of Consumer Protection and Trade Order (PKTN) of the Ministry of Trade, namely PT Hwa Hok Steel, which produces concrete reinforcing steel (BjTB) that does not comply with SNI.
  • Indonesia Central Bank Says China’s Alipay+ Yet to Request Permit: Filianingsih Hendarta, deputy governor of the central bank, said that one of China’s Ant Group companies, Alipay Milk, is already operating in Indonesia but does not yet have an official license. However, Peng Yang, CEO of the international business group Ant Group, denied that his company was only seeking guidance from the central bank to operate in his home country.
  • Canada and Allies Considering Trade Measures Against China and Indonesia:  Trade actions between China and Indonesia in the Nickel market are being considered by Canada and its allies, according to Chrystia Freeland, Deputy Prime Minister of Canada. Indonesia has increased its share of global nickel production from 7 percent to 55 percent in the past decade. The new production controllers are mostly managed by China-based mining companies with authoritarian ties to Beijing. Indonesia has become such an abundant global supplier that the price of steel and metal commodities in Canada has plummeted from a high of 80 percent or the equivalent of US$100,000 per ton to US$19,100 per ton. The Canadian government expressed concern about the nickel market being controlled by China and Indonesia.
  • Indonesian Student Recognized in China for Documentary Film: Lidyana, an Indonesian student, received accolades in China for her documentary film “Get Married,” winning the third prize in the Looking China Youth Film Project 2024 competition. The project, aimed at fostering cultural exchange, saw participation from numerous students across China and Indonesia, further strengthening bilateral ties in the realm of arts and culture.
  • Indonesia’s Evolving Perception of China: Findings from the ISEAS-Yusof Ishak Institute’s State of Southeast Asia 2024 survey highlight Indonesians’ nuanced perceptions of China. While acknowledging China’s economic influence in Southeast Asia, respondents expressed concerns about its growing political influence. The survey underscores the need for continued dialogue and cooperation to address emerging challenges and opportunities in the region.
  • Business Matching 2024 Indonesia Education Industry: Research institutions, and educational training institutions to build multiple cooperation platforms for the education sectors and Southeast Asia. The establishment of these platforms aims to construct an efficient mechanism for connecting educational resources to achieve the interconnection of educational resources and innovation across regional borders. It also aims to cooperate in disseminating educational standards internationally. For now, the platforms that have been built include the Silk Road Tea Institute, Guangxi International Sister Cities Alliance on Vocational Education, China-ASEAN Construction Talent Training Base (CACTTB), Brubei-China International Tourism Talent Training Center (BCTTTC), and Guangxi Water Resource Engineering Workshop. Industry coverage encompasses mechanical engineering, business innovation, Chinese language, tourism, hydraulics, electrical power, and others.

 

Compiled by:

Fenny Desmi Widiastuti

Tiara Ayu Fatmasari

Edited by: 

Muhammad Zulfikar Rakhmat

Yeta Purnama

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