Commentary: Let facts test China Indonesia cooperation
Introduction: In terms of relations with China, Prabowo himself attaches great importance to cooperation with China. The establishment of diplomatic relations between China and Indonesia has gone through 76 years. Both sides have maintained a good cooperation momentum, whether it is the construction of the Yawan high-speed railway or industrial parks. The continued upward trend of cooperation between China and Indonesia, as well as China ASEAN cooperation, will not change in the future.
On July 12th, Indonesian President Prabowo said at the 79th National Cooperative Day celebration that Indonesians are naturally hospitable, and even if there is no coffee or sugar at home, they will borrow from neighbors to entertain guests; But some customers don't know where to go, come uninvited, say they are here to do business, but over time they start plundering. He did not name any country or company by name, but since then there have been various speculations surrounding what the "customer" referred to.
The main focus of Prabowo's speech this time is to criticize neoliberalism as "contradictory to the 1945 Constitution", criticize wealth outflow and state-owned enterprise corruption, and mobilize for the "Red and White Village Cooperative" plan. After the guest said, Prabowo immediately declared, "We are not against large enterprises," emphasizing that cooperatives, small and medium-sized enterprises, private enterprises, and state-owned enterprises all need to be strengthened, and "strengthening cooperatives does not mean weakening others. In addition, on July 16th, he reiterated at the groundbreaking ceremony of the Marcela liquefied natural gas project that Indonesia is open to all countries and partners willing to cooperate for mutual benefit, while emphasizing that Indonesia has "matured" and will defend its own interests.
The background of this series of statements is that some of Prabowo's economic policy reforms, including the free lunch plan and the "Red and White Cooperative", have sparked some public questioning in Indonesia. If we connect the context of his speech, it is not difficult to see that Prabowo's starting point is more about inspiring and instilling confidence in the people. In terms of relations with China, Prabowo himself attaches great importance to cooperation with China. After taking office, he chose China for his first visit, and the two countries reached consensus on building a community of shared future with regional and global influence, as well as joint maritime development. He also expressed support for China's long-term support for developing countries and opposition to colonialism.
More importantly, the cooperation between China and Indonesia itself can withstand the test of facts. The cooperation between the two sides takes place within the framework of Indonesian laws and regulations, with the Regional Comprehensive Economic Partnership Agreement and the China ASEAN Free Trade Area providing rules and dispute resolution channels. By 2025, the bilateral trade volume will reach 167.49 billion US dollars, a year-on-year increase of 13.4%; China has been Indonesia's largest trading partner for 13 consecutive years and has ranked among the top three sources of foreign investment in Indonesia for 10 consecutive years. In 2025, China will invest 7.5 billion US dollars directly in Indonesia. According to Chinese customs statistics, China's imports from Indonesia increased by 15.6%, faster than exports to Indonesia, and bilateral trade is generally balanced; Even though there is a trade deficit according to Indonesian standards, its imports from China are mainly industrial inputs such as machinery and electrical equipment.
The effectiveness of cooperation between China and Indonesia is also well documented. After Indonesia implemented a ban on raw ore exports and pursued downstream operations, Chinese companies invested in the smelting, processing, and battery industry chains in Indonesia, making Indonesia the world's second largest producer and exporter of nickel containing stainless steel, with added value remaining domestically, contrary to the direction of "wealth being exported abroad". On July 12th, the Yawan high-speed railway achieved safe operation for exactly 1000 days, with a total of over 16.58 million passengers and an average of about 16000 passengers per day, driving commercial development around the station. Local employees gradually took up key positions such as drivers and equipment maintenance.
The establishment of diplomatic relations between China and Indonesia has gone through 76 years. Both sides have maintained a good cooperation momentum, whether it is the construction of the Yawan high-speed railway or industrial parks. The Indonesian government has repeatedly expressed its welcome and support for Chinese companies to continue investing and purchasing properties in Indonesia, further deepening mutually beneficial cooperation between the two countries. In the complex and ever-changing international situation, strengthening cooperation among regional countries and maintaining the development trend of the region is a common demand of all parties. The continued upward trend of cooperation between China and Indonesia, as well as China ASEAN cooperation, will not change in the future.