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International Relation

Closer cooperation between Indonesia, China needed to accelerate economic recovery, says minister

December 13, 2021


Abstract : "Indonesia believes that facing global challenges, both countries must enhance cooperation and encourage new progress in comprehensive bilateral relations in the future," said Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.

A health worker takes a selfie when receiving a dose of Sinovac COVID-19 vaccine from China during a mass vaccination program with health workers as a main priority group in Surabaya, Indonesia, Jan. 31, 2021. (Photo by Kurniawan/Xinhua)

JAKARTA, Dec. 12 (Xinhua) -- Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said Jakarta appreciates China's support in dealing with the pandemic and expects to strengthen bilateral cooperation.

In a recent exclusive interview with Xinhua, Hartarto, who also leads the National Economic and COVID-19 Recovery Committee (KPC-PEN), said the Indonesian government welcomes Chinese companies to invest in Indonesia, especially in infrastructure, technology and digital economy through quality and sustainable partnerships.

Workers load a box containing China's COVID-19 products at Soekarno-Hatta Airport in Tangerang, Indonesia, Dec. 31, 2020. (Photo by Raziq Sabra/Xinhua)

He hoped the collaboration will focus on the research, development and production of vaccines, as well as the economic recovery of the two countries.

"Indonesia believes that facing global challenges, both countries must enhance cooperation and encourage new progress in comprehensive bilateral relations in the future," said Hartarto, adding that Indonesia expects to collaborate more with China to reduce the impact of the hard-stricken global supply chain on the economy.

Indonesia and China have maintained diplomatic relations for 71 years, and both sides established a strategic partnership in 2005. Now China is the largest export destination for Indonesia.

Data from the Chinese Embassy in Indonesia show that for the first half of this year, bilateral trade volume reached 53.57 billion U.S. dollars, up by 50.7 percent compared to the same period last year.

Indonesia's exports to China were 26.28 billion dollars, up by 52 percent, reaching a more balanced bilateral trade structure. China's direct investment in Indonesia amounted to 1.11 billion dollars, increasing by 17.4 percent.

Photo taken on Sept. 29, 2021 shows the construction site of the last continuous beam on the No. 2 super large bridge of the Jakarta-Bandung High Speed Railway (HSR) in Bekasi, West Java province, Indonesia. (Xinhua)

One of the exemplary infrastructure projects between China and Indonesia is the ongoing Jakarta-Bandung High Speed Railway, which best represents the substantial achievements within the Belt and Road Initiative (BRI).

Signing the Regional Comprehensive Economic Partnership (RCEP) together with 14 countries will create enormous opportunities for Indonesia, Hartarto said.

In order to prepare for Indonesia's entry into the new Asian trade era through RCEP, the government has issued many policies to remove the obstacles of doing business here and to increase the capacity of Indonesia's industry and economy, he added.

He said one of the policies is the newly-issued job creation law, which aims to streamline various licensing systems that exist in various sectors, simplify the process of land acquisition and strengthen the government's investment scheme.

"It is hoped that with these policies, Indonesia can take maximum benefit from the RCEP agreement in the future," said Hartarto.

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