Indonesia's security OK for investment, says China
Indonesia's security OK for investment, says China
Berni K. Moestafa, The Jakarta Post, Jakarta
A visiting Chinese government delegation said the country had no
qualms about investing in Indonesia despite the simmering threat
of terrorism here, according to a senior Indonesian government
official on Wednesday.
The foreign ministry's director general for Asia Pacific and
African Affairs, Makarim Wibisono, said China was planing to
increase the value of its investment in Indonesia.
"They're not too concerned about matters like security,"
Makarim said after meeting with Chinese Vice Minister of Foreign
Affairs Wang Yi during the seventh senior official bilateral
consultation meeting in Jakarta. The last time the two countries
held the consultation meeting was in February 2000 in Beijing.
During the over five-hour meeting at the foreign ministry, the
two sides discussed bilateral ties and developments on the
regional and global fronts, including terrorism.
Over the past few years, China has been increasing its
economic presence in Indonesia, particularly in the oil and gas
sector.
An influx of Chinese products has also swamped the domestic
market, prompting local manufacturers to demand tariff
protection.
Foreign investment analysts have warned of China taking over
investment opportunities in Indonesia that Western investors deem
too risky given the current security condition in the country.
China is downplaying security concerns in Indonesia just as
many traditional foreign investors are refusing to enter the
country because of security jitters.
In the past, the security concerns of foreign investors
revolved around social unrest, separatist violence and labor
problems, but now terrorism has moved center stage.
A string of bombings, the deadliest in Bali with more than 190
people killed, has moved security to the top of the list of
investor concerns like no time since the May 1998 riots.
Makarim said the Chinese delegation expressed satisfaction
over Indonesia's handling of the Bali bombing case.
The consultation meeting came a day after Beijing approved its
first-ever loan agreement to Indonesia.
Worth US$400 million, the loan will help fund infrastructure
projects in Indonesia. Tuesday's loan deal also marks a break
from Indonesia's reliance on traditional creditor countries under
the Consultative Group on Indonesia (CGI).
China's recent positive gestures to Indonesia also follow on
the heels of an aborted visit by Taiwanese President Chen Shui-
bian. Taiwan canceled the visit after Jakarta said President Chen
would not be welcomed.
China, which treats Taiwan as a rebellious province, earlier
warned Indonesia not to meet with Chen.
Although Indonesia does not have diplomatic ties with Taiwan,
the two countries have extensive economic ties. Taiwan is one of
Indonesia's main importers of liquefied natural gas and has
proposed a new import deal after Jakarta lost out to Australia to
supply $10 billion worth of LNG to China's first-ever LNG
receiver-terminal.
Asked how the Chinese delegation responded to President Chen's
canceled visit, Makarim said "they hailed Indonesia's decision".