Indonesia-China relations

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