~Oei Eng Goan
\nThe Jakarta Post
\nJakarta<\/p>\n
Political and economic relations between China and Indonesia have
\nenjoyed such rapid progress that Chinese Ambassador to Indonesia
\nLu Shumin calls it the best period of development following the
\nresumption of full diplomatic ties in 1990.
\nAmbassador Lu attributed the solid ties to both sides adopting a
\npolicy of mutual trust and respect, good neighborhood and
\ncomprehensive cooperation, boosted by the support of neighboring
\ncountries in the region.
\n\"So I believe that no matter what happens, our two peoples and
\ncountries are determined to continue friendly ties to achieve
\ngreater goals in the future that benefit the two nations,\" Lu,
\nwho assumed his ambassadorial post in Indonesia about a year ago,
\ntold The Jakarta Post in a recent interview.
\nHe also praised Jakarta's adherence to the One-China Policy,
\nwhich acknowledges and recognizes the People's Republic of China
\nas the sole representative of the Chinese people and government
\nand that Taiwan is an integral part of China.
\nThe policy was demonstrated by the Indonesian government when it
\nofficially rejected a visit made by Taiwan's Vice President
\nAnnette Lu to Jakarta last year, as well as a later planned visit
\nby President Chen Shui-bian in his bid to expand Taiwan's
\n\"southward policy\".
\n\"From our point of view, the Chinese government does not oppose
\nexchanges of people to people and economic ties (between Taiwan
\nand Indonesia), but we absolutely oppose the official ties
\n(between Taipei and Jakarta). We truly appreciate the Indonesian
\ngovernment's adherence to the One-China Policy,\" he explained.
\nAlthough relatively new to Indonesia, Lu said he witnessed the
\nsignificant changes the Jakarta government made in moving toward
\na more democratic country and in its bid to maintain national
\nstability and unity, which would eventually help promote regional
\npeace and stability.
\nHe noted the tremendous changes in the country since the
\ntumultuous downfall of Soeharto in 1998, which was accompanied by
\nbloody student demonstrations and mass riots. He recollected the
\nrelative calm that accompanied the passing of legislation in the
\nHouse of Representatives (DPR) last year for establishment of
\npolitical parties and the general election in 2004.
\n\"Although there were demonstrations and protests, but the number
\nof protesters was much smaller in scale compared to 1998. This
\nmeans that there has been improved stability in Indonesia,\" he
\nsaid.
\n\"Smooth development can only be achieved when there is political
\nand social stability and Indonesia, (and) especially the
\ngovernment of President Megawati (Soekarnoputri) has made every
\neffort to achieve that goal. Even though the country was hit hard
\nby the economic crisis of 1997-98, Indonesia last year could
\nstill reach economic growth of 3.6 percent, which was not bad.
\n\"So I believe that, thanks to the wisdom and hard work of the
\npeople, Indonesia will overcome this temporary difficulty and
\nenjoy a better future.\"
\nThe Chinese ambassador told the Post that bilateral trade had
\nflourished since the normalization of ties, with nearly US$8
\nbillion recorded last year, and always in Indonesia's favor (see
\ntable).
\nLu said economic cooperation could still be stepped because the
\neconomies of the two countries are complementary. Data show that
\nChina's exports to Indonesia include machinery and equipment,
\nelectrical appliances, electronic goods, textiles and
\nmotorcycles, while it imports crude oil, palm oil, paper, pulp
\nand timber from its Southeast Asian counterpart.
\nChina, with considerable experience in hybrid rice technology,
\nhas sent a number of experts to work with Indonesian companies,
\nLu said.
\n\"My understanding is that in some cases and after several years
\nof experimentation, rice output could be increased from four tons
\nper hectare to eight tons per hectare. I was told that
\n(Indonesia's) minister of agriculture has issued a license to
\nboost cooperation in this field,\" he said, adding that a number
\nof Chinese companies producing agricultural machinery and
\nequipment were working with firms here.
\n\"In terms of financial aid from China, we have offered a grant of
\n93 billion yuan ($50 million) and we are working with the
\nIndonesian government on how to use the $400 million commercial
\nloan which is now underway,\" he explained.
\nThe Indonesian government's commitment to fight terrorism and
\nefforts to create national stability have provided assurance to
\nChinese businesspeople and investors in examining the country's
\npotential.
\n\"Of course they would also like to see that the Indonesian
\ngovernment further improve its legal system and create a better
\ninvestment climate.\"
\nOther projects undertaken by the two countries include the
\nconstruction of urea storage at PT Pupuk Kaltim in East
\nKalimantan under a build, leasing and transfer scheme, and a
\ncontract awarded by China to Indonesia in 2002 for the yearly
\nsupply of 2.5 million metric tons of liquefied natural gas to
\nFujian province.
\nMeanwhile, in a separate interview with the general manager of
\nBank of China, which began operations in mid-April to help
\nfacilitate the fast growing trade between the two countries, Gao
\nJilu told the Post that, despite Indonesia's great potential
\nmarket, he would prefer to develop the bank step by step.
\nHe declined to elaborate when asked about the bank's lending
\nrate, saying only that it would take a conservative approach and
\nthat it had invested $50 million as starting capital in line with
\nregulations from the central bank.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oei-eng-goan-1447899208",
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