Guangdong seeks better economic ties with Indonesia

Guangdong seeks better economic ties with Indonesia

Bambang Nurbianto, The Jakarta Post/Guangzhou, China

As a follow-up to healthier business ties between Indonesia and
China, some 500 businesspeople from Guangdong province, China,
will sign a series of documents on investment during their visit
to Indonesia later this month.

"We have prepared several documents to be signed during the
visit. However, I can't disclose the details now," Guangdong
administration's deputy director-general of the department of
foreign affairs and economic cooperation Zhu Ze Nam told
Indonesian journalists visiting Guangzhou recently.

Although no details were available, the province is likely to
offer its manufactured products of electronic goods, information
technology (IT), telecommunication networks, heavy equipment and
household products. On the other side, Indonesia will offer its
energy resources for the province.

Guangdong -- located in the southernmost part of China --
accounts for 30 percent of China-Indonesia bilateral trade of
US$13.2 billion, or $3.96 billion. Indonesia enjoyed a trade
surplus last year, with total exports at $2.1 billion and imports
at $1.1 billion.

With a total size of 231,000 square kilometers, the province
has served as the leading hub for China to open up its economy to
the outside world since 1978.

With a population of 83 million, recorded in 2004, the
province's income per capita is $3,000 -- 20 times higher than
the average for all of China in 1978 when the country launched
its economic reform.

Wen Beiyan, a professor at the Institute of the Southeast
Asian Studies of Guangzhou-based Jinan University, said Indonesia
and Guangdong had a great opportunity to boost economic
cooperation due to various reasons.

Guangdong was among China's strongest provinces in terms of
economy, with its gross domestic product exceeding $150 billion
in this year's first 10 months, reported Xinhua news agency.

Although the province has advanced industrial products, it
lacks natural resources. Therefore, Indonesian businesspeople
have an opportunity to export commodities like oil, natural gas
and coal as well as other raw materials.

"Guangdong uses a lot of coal. So far, the supplies come from
provinces in the northern part of China," said Wen.

"Transportation expenses would actually be cheaper for
Guangdong to import coal from Indonesia as the distance is
shorter," he added.

The increasing prosperity of Guangdong's citizens in recent
years has given them the means to travel to other countries. Data
from the province's tourism board shows there were 1.71 million
Guangdong residents traveling abroad last year.

"From that number, only 60,000 of them visited Indonesia last
year. Meanwhile, some 200,000 Indonesians came to Guangdong in
the same period. Therefore, both parties should intensify its
promotion in tourism," Wen said.

Director of the Institute of Southeast Asian studies of Jinan
University, Cao Yunhua said the Association of the Southeast
Asian Nations (ASEAN) is the fifth largest trading partner of
Guangdong province with the total trade of $9.27 trillion.

He said Indonesia was fifth among the 10 ASEAN members after
the Philippines, Malaysia, Singapore and Thailand. But he was
quick to add that trade volume between Guangdong and Indonesia
would increase, following the likely increasing imports of raw
materials and energy resources from the latter.