RI, China need better mutual understanding in trade, tourism
RI, China need better mutual understanding in trade, tourism
The Jakarta Post
Jakarta
Despite their long-term relations, it seems that Indonesia and
China do not yet have a clear picture of one another, a senior
Chinese diplomat says.
"Both parties should develop better communication to give a
comprehensive picture of their country in order to develop a
better relationship," Chinese minister counselor for economic and
commercial affairs Tan Weiwen said during his visit to The
Jakarta Post on Monday.
Although the countries' two-way trade enjoys a steady annual
growth of 20 percent, direct investment seems to have slowed, he
said.
Tan said that trade between the two countries stood at
US$13.48 billion in 2004, of which China experienced a $970
million trade deficit.
Meanwhile, in the same period, Chinese investors only
channeled roughly $2 billion into Indonesia, primarily in the oil
and mining sector. In return, Indonesian investors are slowing
down on investment in China.
"Indonesia was so occupied with its own domestic issues that
it did not respond to China's economic growth as vigorously as
other Southeast Asian countries," said Tan.
He added that Chinese investment in Indonesia had not been
significant compared to investment made in other neighboring
countries due to the problem of legal uncertainty.
"In recent years, there was not much investment made in
Indonesia because the businessmen are waiting for more legal
certainty and a clear division between Indonesia's central
government and local administrations," he said.
Tan pointed out that Chinese businessmen needed clear rules on
business deals made with the central government once they faced
the local administrations. "These are the problems that the
Indonesian government should overcome first," he said.
Aside from slow growth in trade and investment, Indonesia is
also experiencing a similar situation in its tourist arrivals
from China. "Out of a total of 20 million Chinese tourists
traveling abroad annually, only some 100,000 chose Indonesia as
their destination," Tan, who was born in Indonesia, said.
The figure stood in stark contrast with the 700,000 Chinese
tourists visiting Singapore last year.
"People in China do not have a comprehensive view of Indonesia
and what is going on in the country," he said. "The frequently
asked question is whether Indonesia is safe in view of the recent
bombings and whether the anti-Chinese movement that erupted in
1998 is over."
Indonesia has experienced difficulty in luring foreigners
after the 2002 bomb blasts on the paradise island of Bali.
A bomb blast in front of the Australian Embassy in Jakarta in
October last year proved to be another blow, especially after the
United States, several European countries and Australia issued
repeated warnings against traveling to the country.
"It is the task of the media in both countries to report
objectively on what is going on both in Indonesia and in China,"
he said. "Tourism in Indonesia actually has much more potential
but there has not been much promotion of it."
Earlier this year, the government made moves to target
tourists from China -- in addition to India and the Middle East
-- to increase revenue from the sector next year and to reach its
target of six million visitors and US$6 billion in foreign
exchange by establishing visa services in the Indonesian
Consulate in Guangzhou and Shanghai.
"People in the two countries should be well-informed in order
not to be prejudice toward one another," Tan added. (003)