A warming relationship?

A warming relationship?

Given the myriad pressing problems of Indonesia today, it is
hardly surprising that President Megawati Soekarnoputri's
decision to go on a tour of Asia is causing controversy.

Observers, analysts and the public are intensely interested in
the pros and cons of the President's first official visit to
China, North and South Korea and India.

Some say it is too much of a luxury for the President to spend
all that money touring at a time when the country is still
struggling to survive one of its worst crises in several decades.
The president would have done better to stay at home and tackle
the problems facing Indonesians, they argue.

These critics have a point. Nobody can deny that Indonesia is
in dire economic and financial straits and can hardly afford to
squander money on gestures of diplomatic courtesy whose tangible
benefits for Indonesia are doubtful, to say the least. The fact,
however, that President Megawati is traveling at the head of an
assemblage that includes 105 prominent Indonesian businessmen,
not to mention cabinet ministers and other members of her
entourage, is a clear signal that this is no mere courtesy visit.

Clearly, the president intends to draw the most benefit out of
this tour and lay the groundwork for wider cooperation in the
fields of trade and investment in the future.

So far, Megawati's visit to China seems to be not entirely
without results, as the critics feared. A number of memoranda of
understanding (MOUs) were signed by the two parties on Sunday,
the first day of the president's visit, and more are to follow.

These may not exactly be results to boast about, but our two
nations seem set to enjoy much more significant growth in trade
and economic relations in the foreseeable future.

China currently ranks fifth as Indonesia's largest trading
partner, trailing the United States, Japan, Singapore and
Malaysia, with Indonesian exports standing at US$4.4 billion and
imports at US$3.06. Chinese investment in Indonesia has now
reached US$497 million, spread over 138 projects. In late
January, Indonesia's state-owned oil company Pertamina and
partner British Petroleum were shortlisted as potential suppliers
of liquefied natural gas (LNG) to Guangdong, China. Officials say
that if they win the bid, they could supply 1.5 million metric
tons of LNG annually to China from the Tangguh gas field in
Papua.

Hence, President Megawati's tour, especially of China, should
be assessed with one eye on the future. Many observers predict
that given its impressive economic growth rate so far, China is
destined to be a world economic giant in the next few decades. With
the Cold War over and communism in China no more than a shadow of
its old self, there is no reason for Indonesia to fear closer
relations. And considering the results that the president's visit
appear to have brought so far, signs are that improved relations
are on the way.