Susilo wants closer relations with China<\/p>\n
Primastuti Handayani, The Jakarta Post, Beijing<\/p>\n
President Susilo Bambang Yudhoyono says Indonesia could benefit
\nfrom forging closer ties with future superpower China.<\/p>\n
Speaking to the Indonesian community in Beijing on Wednesday
\nevening at the Diaoyutai State Guest House, Susilo pointed out
\nthat China had a gross domestic product of US$1 trillion,
\ncompared to Indonesia's $200 billion.<\/p>\n
\"After surpassing Germany and Japan and probably the United
\nStates, which had a GDP of $10 trillion last year, by 2050, China
\nis becoming a real superpower,\" he said.<\/p>\n
The President said his four-day visit to China was a follow up
\nto Chinese President Hu Jintao's visit to Jakarta in April after
\nthe Asian-African Summit, where the two leaders signed a
\nstrategic partnership agreement.<\/p>\n
Susilo said Indonesia's trade volume with China had grown
\nsignificantly over the past few years and looked to continue
\nrising.<\/p>\n
\"Last year, our exports to China stood at $4.6 billion while
\nour imports were $4.1 billion,\" he said.<\/p>\n
\"In the first two months of this year, our trade volume
\nincreased by 47 percent. By 2008, we expect our trade volume with
\nChina to rise to $20 billion.\"<\/p>\n
Indonesia's $4.6 billion in exports to China in 2004 comprised
\n$1.17 billion in oil and gas exports and $3.44 billion in non-oil
\nand gas exports. Those figures were a 21 percent increase from
\n2003.<\/p>\n
The country's $4.1 billion in imports from China last year
\nconsisted of $743 million in oil and gas imports and $3.36
\nbillion in non-oil and gas imports, a 38 percent raise from 2003.<\/p>\n
Data from the Investment Coordinating Board shows that
\nbilateral trade between the two countries stood at $13 billion
\nlast year, while Chinese investment in Indonesia amounted to $6.5
\nbillion.<\/p>\n
\"If we can (increase trade ties), we can create more jobs back
\nhome as well as drive the real sector and increase tax revenue,
\nwhile economic growth will also rise. Thus we can also improve
\nthe education sector, health services and increase people's
\npurchasing power,\" Susilo said.<\/p>\n
Indonesia's economy grew by 5.1 percent last year, with a
\nprojection of 5.5 percent growth this year. Growth in the first
\nquarter of this year reached 6.4 percent.<\/p>\n
During Susilo's visit to China, Indonesia will offer
\ninvestment opportunities in its vast energy resources,
\ninfrastructure projects and other commodities such as palm oil
\nand rubber.<\/p>\n
Indonesia has estimated reserves of nine billion barrels of
\noil, 188 trillion standard cubic feet (tscf) of gas and 19.3
\nbillion tons of coal.<\/p>\n
However, despite the abundant reserves, Indonesia's rising
\nenergy consumption and recent fuel shortages are cause for
\nconcern.<\/p>\n
\"Our oil reserves will last 15 years, gas 60 years and coal
\n150 years, assuming there is no new exploration and
\nexploitation,\" the President said.<\/p>\n
To address the recent fuel shortages, which forced the
\nPresident to delay his visit to China, which was originally
\nscheduled to begin on July 13, Susilo said that in the short term
\nthe government was focusing on its energy conservation campaign.<\/p>\n
\"However, energy conservation is only one of the solutions,\"
\nSusilo said.<\/p>\n
\"Saving fuel and the diversification into alternative fuels
\nare only 30 percent of the energy conservation scheme. We must
\nlook for other ways to address the fuel problems,\" he said.<\/p>\n
For the mid and long terms, the government will study its fuel
\nsubsidy policy and try to devise an acceptable fuel pricing
\nscheme.<\/p>\n
\"When our oil output decreased to 1.1 million barrels per day
\n(bpd) from 1.6 million bpd during the Soeharto era, we had to
\nimport oil when the price was at $62 per barrel. This will cause
\nthe fuel subsidy to balloon to Rp 120 trillion, which is 30
\npercent of the total state budget.\"<\/p>\n
Susilo also raised concern over rampant oil smuggling due to
\nthe large disparity between domestic and global oil prices.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/susilo-wants-closer-relations-with-china-1447893297",
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