For outgoing Chinese Ambassador to Indonesia Lu Shumin, following the age-old Chinese adage of maintaining a harmony of mind and manners has helped him keep congenial relations between his country and Indonesia.

The Confucian ethic is also applicable in trade and politics.

In an interview with The Jakarta Post at the embassy on Wednesday, Lu said that China's fast economic growth should be seen as an opportunity for Indonesia.

"The world is changing. China views itself as a country being entitled to achieve, to strive for its own development. Any country's rapid development, in my opinion, should not be considered a threat to others.

"China's development is open to the whole world, and a developed China would create opportunities for Indonesia. I think more and more Indonesians have come to realize this potential," Lu said.

China signed a landmark free trade agreement with the 10 countries grouped in the Association of Southeast Asian Nations (ASEAN) during the November summit in Vientianne.

The pact, scheduled to be instituted by 2010, includes an agreement to liberalize tariff and non-tariff barriers on goods and another to set up a mechanism to resolve trade disputes.

Some observers maintain that such a free trade zone, covering nearly two billion people, would disadvantage Indonesian producers unless they could improve their competitiveness.

Lu, a Canada-educated diplomat, said the Chinese government was willing to help Indonesia develop its economy. He said he had seen the rapid development in bilateral ties in various areas such as politics, economic, culture, education, science and tourism.

"Indonesia has its strong points. What matters is how it uses its strength to make up for its shortcomings. Both sides can combine their abilities to benefit each other and the region.

"There will always be competition, but competition itself is not something that Indonesia has to worry about. A strong Chinese economy will empower the abilities of local companies. Chinese businessmen are willing to come and to do business in this country."

According to Indonesian government figures, the trade volume between two countries reached to US$5.4 billion in the first eight months of 2004. The full statistics have yet to be released.

In 2003, bilateral trade volume rose to $6.8 billion from $5.3 billion in the previous year, with the balance favoring Indonesia.

Indonesian Minister of Trade Marie Elka Pangestu was quoted as saying by the Bisnis Indonesia last month that China was the fourth-largest export destination for non-oil products and the third-largest importer to Indonesia.

China and Indonesia set up diplomatic relations on April 13, 1950. On Oct. 30, 1967, Indonesia suspended the diplomatic ties following the aborted coup of the Indonesian Communist Party. On Aug. 8, 1990, both countries resumed ties, and their leaders have exchanged visits and maintained contact ever since.

Lu said he had seen the best period of Chinese-Indonesian relations during his tenure. The 55 year old first presented his credentials to then-president Megawati Soekarnoputri in 2002.

He noted that Indonesians of Chinese descent had been experiencing less discrimination in the country.

"The country's stability and development very much depends on the different ethnic groups living side by side in harmony. Indonesia is a country of many different ethnic groups. The strength of Indonesia can be demonstrated by their numbers.

"I think things are moving in the right direction. The Chinese community in the past few years, since the democratization of this country, has gained more of a chance to exercise their rights. They can use the Chinese language, set up their own organizations. They have Chinese newspapers, TV programs and so on. This is a healthy development."

He also expressed his hope that the present anti- discriminatory legislation would never be abolished, "so the Chinese community and the people here can believe that they are also the masters of this country along with other ethnic groups -- encouraging them to make a greater contribution to society."

In 1996, president Soeharto canceled the regulation requiring Chinese-Indonesians to produce SBKRI (Indonesian citizenship certificates) if they wanted to obtain official documents like passports.

In 1998, president B.J. Habibie issued a presidential instruction to end the official use of the phrases "indigenous" and "non-indigenous Indonesians".

In 2000, president Abdurrahman Wahid revoked a regulation banning Chinese-Indonesians from celebrating their religious ceremonies and holidays.

Two years later, Megawati declared Chinese New Year a national holiday.