- Indonesia and China Discuss Strengthening Comprehensive Strategic Partnership: On February 3, 2024, Chinese Assistant Foreign Minister Nong Rong and Director General of Asia Pacific and Africa of the Indonesian Ministry of Foreign Affairs Abdul Kadir Jailaniconvened the 15th China-Indonesia Diplomatic Consultation in Xiamen, Fujian. During the meeting, Nong Rong highlighted the significant encounter between President Jokowi and President Xi Jinping the previous year, which paved the way for enhanced comprehensive strategic cooperation between the two nations. This dialogue marked a significant step forward in solidifying bilateral ties and translating shared aspirations into tangible projects for the mutual benefit of both countries.
- KPU Denies Sirekap Server is in China: KPU members have refuted allegations concerning the use of a server or cloud from China for the Sirekap server utilized by the KPU. They have underscored that all Sirekap data is securely stored within Indonesia. Furthermore, the KPU’s Sirekap system has undergone rigorous evaluation processes by authorized institutions, and its data is considered public. However, it is acknowledged that the Sirekap page remains susceptible to cyber interference. To address this concern, KPU members are collaborating with the cyber cluster team to mitigate any potential disturbances and ensure the integrity of the system.
- China and Indonesian Election: Ahead of the Feb 14, 2024 vote, anti-China rhetoric was notably scarce compared to 2019. Defense Minister Prabowo Subianto, once critical of China, has won the presidential election. Indonesia is expected to maintain friendly ties with China due to strong economic relations and shared strategic interests, including investments under the Belt and Road Initiative. Chinese Ambassador Lu Kang visited Prabowo to congratulate him on his apparent win. Once in office, Prabowo will balance relations between the US and China, committing to Indonesia’s non-aligned foreign policy. China reaffirms its commitment to collaboration with Indonesia, despite challenges like job security and territorial disputes in the South China Sea. Under President Jokowi, China became Indonesia’s top trading partner, with a focus on Belt and Road projects.
- Indonesia and China Strengthen Cooperation in Deep-Sea Research: The National Research and Innovation Agency (BRIN) of Indonesia is set to embark on a collaborative research initiative with the Institute of Deep-sea Science and Engineering, Chinese Academy of Sciences (IDSSE-CAS), facilitated by the Coordinating Ministry for Maritime Affairs and Investment (CMMAI) of Indonesia. Scheduled to commence from February 23 to March 23, 2024, this joint research endeavor will focus on exploring the depths of the Indian Ocean. Specifically, the research will be conducted in the deep trench located west of Sumatra and south of Java, Bali, and Lombok. Notably, this trench ranks among the deepest in the Indian Ocean, with depths reaching approximately 7,192 meters.
- The Influx of Chinese Goods into Indonesia’s Market Raises Concerns: China’s economic growth has fallen short of expectations, compounded by economic challenges faced by several countries and rumors of recession in some regions. This situation is expected to impact Indonesia, potentially leading to an influx of imported goods flooding the domestic market, particularly from China. Redma Gita Wirawasta, Chairman of the Indonesian Association of Filament Fiber and Yarn Producers (APSyFI), has cautioned that if this trend persists, it could exacerbate conditions in the Indonesian domestic market.
- China’s Plans to Invest in New Sectors: Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, disclosed China’s interest in establishing a flatware factory in Indonesia. He elaborated that China aims to invest in Indonesia’s nickel downstream industry, focusing on the production of spoons and forks. Additionally, Luhut mentioned China’s plans for investment in a petrochemical project in North Kalimantan (Kaltara). He expressed hope that these initiatives would create opportunities for local industries and small and medium-sized enterprises (MSMEs) to participate in the petrochemical sector.
- China and Indonesia’s Nickel Industry: China and Indonesia are implementing significant output cuts to counteract the downward trend in nickel prices, driven by a surplus in the market. With plans to reduce nickel production by at least 100,000 metric tons this year, both countries aim to minimize losses amid declining prices attributed to the metal’s use in stainless steel and electric vehicles. This move underscores the challenges faced by Australia’s EV battery metals industry, which must navigate obstacles like high energy costs and China’s dominance in critical mineral processing. Indonesia’s emergence as a major player in the nickel market, fueled by government support and substantial Chinese investment, has disrupted global dynamics, contributing to lower prices and posing challenges for higher-cost producers like Australia.
- China-Indonesia Railway Cooperation: Indonesia is set to import three series of modern Electric Rail Trains (KRL) from Beijing-based train manufacturing company CRRC Sifang Co., Ltd. This collaboration between PT Kereta Commuter Indonesia (KCI) and CRRC Sifang highlights the deepening relationship between the two nations. With a total investment of IDR 783 billion, KCI’s decision to import these trains underscores the commitment to enhancing Indonesia’s transportation infrastructure. During a press conference held at KCI’s headquarters on February 6, 2024, Anne Purba, Vice President of KCI Corporate Secretary, emphasized that the choice to partner with CRRC Sifang was based on the superior quality of their products and their competitive prices, surpassing those of Japan and Korea.
- Investigations into China Railway Construction Corporation: A coalition of countries is currently conducting a thorough investigation into China Railway Construction Corporation (CCRC) company’s operations, prompted by Europe’s allegations of unfair foreign state subsidies. Concerns have been raised regarding CCRC’s offerings for electric train maintenance and staff training, which may have included overly favorable terms that put other participating companies in public procurement procedures at a disadvantage. The implications of these practices extend beyond Europe, with Indonesia also facing potential economic losses amounting to 544 trillion Rupiah between 2020 and 2024. China’s Recognition of Indonesian Products: Chinese media acknowledges the advancements in Indonesian military technology, particularly the SS2 assault rifle, reflecting Indonesia’s growing capabilities in defense innovation.
- Great Wall Motor in Indonesia: Great Wall Motor, a leading Chinese automotive manufacturer, is gearing up to enter the Indonesian automotive market, with plans to introduce their vehicles starting in the second quarter of 2024, with a particular focus on hybrid models. Recognizing the growing interest in environmentally friendly transportation options, GWM sees hybrid vehicles as an ideal choice for Indonesian consumers. Despite the increasing appeal of electric cars, data suggests that sales of hybrid vehicles continue to outpace those of purely electric ones, making them a strategic offering for the Indonesian market.
- China Construction Bank Indonesia (MCOR) Raise Net Profit: China Construction Bank Indonesia (MCOR) reported a notable increase in net profit, reaching IDR 241.29 billion for the fiscal year 2023, marking a substantial 77.47% surge compared to the previous year’s IDR 135.95 billion. This remarkable growth in profit was attributed to several factors, including an uptick in credit activities aligned with enhancements in asset quality. Moreover, the bank’s performance was bolstered by favorable capital conditions, contributing to its robust financial performance throughout the year.
- Kadin NTT Attracts Chinese Investors to Indonesia: The East Nusa Tenggara (NTT) Chamber of Commerce and Industry (Kadin) has undertaken proactive measures to attract Chinese investors to Indonesia. Through a series of strategic initiatives, including business visits and investment presentations, Kadin NTT has showcased the abundant opportunities available in the region to potential investors from three prominent cities in China: Suzhou, Jiaxing, and Shanghai. These efforts aim to foster mutually beneficial collaborations and promote economic growth in NTT by leveraging foreign investment opportunities.
- Chinese Recognition of PT Pindad’s SS2 Assault Rifle: China’s prominent media outlets have acknowledged the prowess of PT Pindad’s SS2 assault rifle in comparison to its predecessor. They have also drawn parallels between the SS2 and renowned assault rifles from the United States (US) and France. Highlighted in an article by ANTARA titled “TNI Battalion in Lebanon recognized by the tough French contingent,” the SS2’s resemblance to the French FAMAS assault rifle has been noted. While similarities exist, particularly in terms of ammunition, it’s essential to recognize the distinctions between the SS2 and FAMAS. Notably, the placement of the cock lever in the SS2 differs, situated in the middle to accommodate left-handed users, distinguishing it from the FAMAS.
- Collaboration in AI Development: Deputy Minister of Communication and Information Nezar Patria highlighted China’s strategic importance due to its substantial implementation of AI technology. The collaboration between the Indonesian government and China aims to enhance cooperation in developing and utilizing the national artificial intelligence (AI) ecosystem.
Compiled by:
Fenny Desmi Widiastuti
Tiara Ayu Fatmasari
Edited by:
Muhammad Zulfikar Rakhmat
Yeta Purnama
