Indonesia-China relations

It was believed earlier that the Natuna Islands would become a point of friction between Indonesia and China. Both countries argued about the question of ownership over the islands and its surrounding waters, which are rich in resources, including natural gas.

The potency for conflict between Jakarta and Beijing does, of course, need watching, despite the fact that the chances have diminished since Foreign Minister Ali Alatas made his statement a few days ago. Hopefully, his assurance will help to dispel any doubts that may exist over the future status of the Natuna Islands.

The prospects for relations between Indonesia and China in the future appear to be positive. According to Foreign Minister Ali Alatas, China has never laid claim to the Natuna Islands and its surrounding waters. All Beijing did was make a pictorial map without any claims and without delineating any coordinates as is usual practice.

It is to be hoped that this assurance will clear the air for the US$43 billion Natuna gas mega project to proceed. This project will help determine the future growth of the national economy, at least in a doomsday scenario in which foreign exchange revenues from oil are projected to decline because of an increased domestic demand and declining exports.

Being a long-term project, worth billions of dollars, the Natuna gas venture requires not only assurances in terms of available markets, but also in terms of political security. This includes the assurance that the area in which the investments are to be made will not be claimed by other countries.

-- Bisnis Indonesia, Jakarta