Thursday, 12 March 2015


President Jokowi was more zealous than over to continue the estafette mission to foster Indonesia-China trade relationship and pursue target of USD 100 billion trade volume. The estafette stick which was previously held by the past SBY Government for 2 office periods (2014 - 2014). The trade volume grew from Rp6 trillion (USD 500 million) in 2015 to Rp10 trillion (USD 900 million) in 2008 and USD 30 billion in 2010.

“When I was Indonesia’s Ambassador to China in 2009, SBY at the time President of RI encouraged me to pursue target and we managed to exceed Rp20 trillion” ex Indonesia Ambassador to China disclosed to Business News (13/2).

In the present condition trade volume between the 2 countries was still around USD 66 – 70 billion but President Jokowi had declared target of around 80 billion by end of 2015. “President Jokowi’s target was more ambitious considering that meeting with China’s President XI Jinping in November 2014 was full of economic development propositions. The two leaders were embarking on a new phase of regional and world’s economy.

Before meeting of the 2 leaders President Jokowi had delivered his speech before the Parliament on October 2013. At the time President SBY and House agreed on fostering collaboration based on the concept of marine silk road, while President Jokowi came up with a similar concept as maritime full chrome concept. The Indonesian waters became connecting path of Indian Ocean and Pacific Ocean Inkages through Asia and Southeast Asia.

The concept was Indonesia as an archipelago with widest sea in Southeast Asia. The Maritime Silk Road and Maritime Full Chrome was a reflection of economic activities 200 years BC when at that time the Han Dynasty already opened silk road to as far Persia in the Meditreranean Sea.

Meanwhile the Indonesian Ambassador to China Sugeng Rahardjo stated that bilateral economic collaboration opened access to Europe’s market. Trading route through the Indonesian Ocean had been going on for long. “One of the harbors in the city of Xin An had direct route to Indonesia and further to Middle East. China’s cargo shipping liners had the chance to play their roles. China was developing their industry especially manufacturing which needed sea transaction,” Sugeng Rahadjo disclosed Business News.

Besides, the Lombok Straits could serve as alternative route which means access to the eastern part of Indonesia. “Indonesian Embassy staff explore the nooks and cranny of the business. Marine would be the backbone of connectivity.”

In a different location, the management of Mining Consultant in Indonesia stated that the execution of Indonesia-China collaboration afield was not as easy as twisting the palm of the hand. Joint venture collaboration between Indonesian and Chinese Companies had been going on for long. “The Chinese investors came with their technicians. We try to meet all their requirements; but even at the stage of contract execution problems arose.” An anonymous executive disclosed to Business News (13/2).

Agencies for Chinese investors in construction business had difficulty when they had to manage permit application or permit arrangements. To learn from experience, explorations had run from Aceh to Papua. While rendering services the company also helped Chinese investors to explore mines. “The process is complicated and energy draining, I helped Chinese technicians who did not speak English or Indonesian language. Even if there was any technician who could speak English it is the Indonesian counterpart who did not speak English or Mandarin.”

The process now was at the stage of managing translators. Every single Article in the document was dissected b each party. All points now was at the stage of managing translators. Every single article in the document was dissected by each party. All points of agreement were discussed to the detail. Chinese investors would not do the same mistake and be cheated. We are doing very cautiously.” (SS) 

Business News - February 18, 2015

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