Reflection on the 75th years of Indonesia-China relations (The Jakarta Post)

Of the 75 years of diplomatic relations, the Indonesia-China Comprehensive Strategic Partnership (ICCSP), established in 2013, is the era when giant leaps occurred. 

The value of bilateral trade in 2013 was US$52.45 billion; by 2024, it had nearly tripled to $135.17 billion, with exports accounting for 23.6 per cent of our total exports and 31.1 per cent of our total imports. Indonesia is the 16th export destination partner (2 percent of China's total exports) and the 11th import origin partner (3.2 percent). 

Investment Coordinating Board (BKPM) data show that Chinese investment jumped from 12th place in 2013 ($297 million) to second place ($8.1 billion) by 2024, with 59 percent average investment growth over the past decade. These figures exclude Hong Kong SAR. 

When diplomatic normalization began, relations moved glacially. The consequences of two decades of frozen diplomatic ties and three decades of the New Order's assimilation policy were still chronically felt. 

Indonesia's ability to engage optimally with China was effectively hampered by the vast knowledge gap, thanks to the prohibition of Chinese schools, associations and media, restrictions on Chinese New Year and other cultural expressions, and the banning of travel and China-related materials. Even now, the ramifications remain. 

In May 1998, the violence triggered additional trauma in Indonesia and profoundly tainted Indonesia's reputation in China. Yet, May 1998 was also momentous, as the democratic transition pushed for eradicating discriminatory laws and institutions from the colonial and New Order eras. These generated a more conducive ecosystem for initiating the Strategic Partnership (SP) as a vital foundation for the ICCSP. 

The early partnership era promoted the resuscitation of dialogues and exchanges at multifarious governmental and societal levels. Ideological suspicion, political antipathy and social ignorance slowly diminished, though they have not completely gone. 

Efforts to shrink the knowledge gap have benefited from a range of scholarships, joint research, people-to-people exchanges and dual programs, such as Chinese language and cultural institutions, including eight Confucius Institutes, the China Space in the Istiqlal Mosque and Indonesia China Friendship Library in Semarang Grand Mosque, as well as Indonesian equivalents, including Warisan Roemah Indonesia in Beijing, Rumah Soekarno in Shenzhen, the Indonesian village in Hainan, and Yuanzai Indonesia School in Fuqing. 

Some noteworthy aspects of the ICCSP are value-added investments, collaboration in green and digital transitions, and large-scale (much-needed) infrastructure developments. For instance, Jatigede Reservoir, one of the biggest in Indonesia; Morowali Industrial Estate, the world's largest integrated nickel processing centre; projects that are considered the first and/or largest in Southeast Asia, like the Cirata floating solar power plant; Kayan hydroelectric power plant and Whoosh high-speed train; major toll roads, such as Tanjung Priok access, Cisumdawu, Serangan-Tanjung Benoa and Medan-Kualanamu. 

Other medium-scale labor-intensive projects include relocating factories, battery and EV factories from Wuling Motors, CATL and BYD in Subang and Morowali; textile and furniture factories to Central Java and Sumatra; electronics factories (Xiaomi, Huawei, Skyworth) to Batam; and SME spaces in “Two Countries, Twin Parks” zones. 

Under the Digital Silk Road program, 4G/5G infrastructure, data centers, cloud computing, e-commerce, fintech, AI and smart cities are being developed. Both countries produce the ASEAN-China AI Center, which focuses on the agricultural sector, with Nanning's Smart City as a model. Huawei launched the Digital Literacy Initiative (ICT Academy and Spark), which trained 52,000 Indonesians in AI, IoT and big data. There are plans to create 9 million AI-skilled workers by 2030 through Chinese-funded vocational training. 

There are still many missteps, imperfections and challenges that require constant correction and serious improvements. If managed properly and humanely, these projects will help improve the welfare of the wider community. The keywords are good governance, balance, transparency and sustainability. 

Bilateral partnerships have unfolded under potent geopolitical shifts: China's economic rise and the flourishing of regionalism/multilateralism; the unipolar order and globalization have faced serious challenges from the 2008 global financial crisis and a crisis of legitimacy brought by proxy wars in Ukraine, Gaza and Sudan. Eventually, United States-China competition has become a source of tension and uncertainty. 

The latest shock came with US President Donald Trump's "Liberation Day". These toxic tactics target China primarily and will most likely not care about any negative impacts on existing multilateral institutions and/or other countries. 

This may be the toughest test for the ICCSP, especially for Indonesia's new government. The timing of President Prabowo Subianto's decision to join BRICS could not have been less opportune. An effective synergy will be needed between ASEAN-based mechanisms and BRICS, considering three key ASEAN states are ready to engage with BRICS. 

Regional endeavors to deepen cooperation through the ASEAN+3 mechanism have sustained Asia's growth while weathering the pandemic and geopolitical shocks from proxy wars. These valuable lessons need to be further optimized as the region navigates the coming tariff storm. 

Some have questioned whether China will adopt a Trumpist style in its retaliation. If the ICCSP experiences were inadequate lessons, then perhaps ponder the lessons from two of the most devastating crises, the 1997 Asian financial crisis and the 2008 global financial crisis. China implemented measures to stabilize its economy, which prevented the region from spiraling further down and helped stimulate global recovery in 2008. 

Should that not be how greatness is measured, from acts of solidarity and just partnership? Where is the America that used to practice that as well? 

The year 2025 also marks the 70th anniversary of the Asia-Africa Conference. Guided by the Bandung Spirit, President Prabowo and President Xi can reinvigorate the ICCSP and push for innovative measures that not only further enrich bilateral partnership but also further empower and create collective prosperity for the Global South.

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Christine Susanna Tjhin
The Jakarta Post, 16 April 2025.

This article was published in: https://www.thejakartapost.com/opinion/2025/04/16/reflection-on-the-75th-years-of-indonesia-china-relations.html.