Chinese president visits Indonesia to boost ties

[Zarvan]

JAKARTA (AP) - Chinese President Xi Jinping is making his first visit to Southeast Asia since taking office, arriving Wednesday in Indonesia to boost ties and economic partnerships with the region's biggest country.
He will meet his Indonesian counterpart Susilo Bambang Yudhoyono and become the first foreign leader to speak at the country's Parliament. The countries are expected to sign a number of agreements including loans, mining, transportation and joint investment. Investment deals for monorails in the capital, Jakarta, and the West Java provincial capital of Bandung are also planned with all deals totaling $20 billion.
A currency swap that could be utilized to support Indonesia's sliding rupiah in a crisis is also expected.
"This visit is very significant for the improvement of bilateral relations in political, economic and other sectors," Industry Minister Mohamad Suleman Hidayat said at a news conference Tuesday.
He said the two countries agreed to create a strategic partnership that will benefit not only both countries, but the region and the business world.
"Therefore it needs strong will and commitment from both parties," Hidayat said.
Promoting deeper ties between China and the 10-member Association of Southeast Asian Nations also will be discussed.
Indonesia has been a broker during heated territorial spats over disputed islands in the South China Sea. China claims most of the entire sea on historical grounds, but Vietnam, the Philippines, Brunei, Malaysia and Taiwan all strongly disagree. The number of maritime incidents between China and its neighbors has increased tensions in recent years, raising worries of potential violence.
Xi, who took office in March, is also expected to visit Malaysia and attend the Asia-Pacific Economic Cooperation summit next week on Indonesia's resort island of Bali.
China is Indonesia's second-largest trading partner. Two-way trade reached $66 billion last year, while Chinese direct investment rose to $2 billion.
http://dunyanews.tv/index.php/en/Wo...ter&utm_campaign=Feed:+dunyaTVnews+(Dunya+TV)

 

[cirr]

10/02/2013

As Obama Cancels His Trip, China's President Heads To Indonesia, Malaysia

Citing the U.S. government shutdown, President Obama has abruptly cancelled a state visit next week to Malaysia, sending Secretary of State John Kerry in his place. Obama’s visit, part of a scheduled four-nation Southeast Asian trip, would have been the first by a sitting U.S. president since 1966 to Malaysia, a prosperous nation that, like its neighbours, is becoming increasingly integrated with China’s economy. And guess who’s not cancelling his travels? Yes, President Xi Jinping, who arrived Wednesday in Indonesia to great hoopla. His next destination, Malaysia, can now roll out the red carpet with no distractions, now that Obama’s expansive entourage is on hold.

It’s unclear if Obama will go ahead with the rest of his regional trip, taking in Brunei, the Philippines and Indonesia. Washington’s internecine politics may not allow it. President Xi faces no such constraints on his first trip to Southeast Asia since taking office earlier this year. That he begins his tour in Indonesia is significant. Bilateral trade between China and Indonesia has grown fourfold since 2005 to $66 billion last year (trade with Malaysia reached $95 billion)（both are higher than trade between India and China）. Xi is due to meet President Susilo Bambang Yudhoyono and address Indonesia’s parliament. While Indonesia is a claimant to some of the islands in the South China Sea, it hasn’t been drawn into direct confrontation, unlike Vietnam and the Philippines.

As Reuters reported this week, the Philippines is busy beefing up its coastal defences against China, including a new port in Palawan that could host U.S. warships. Obama’s visit to the former colony was supposed to spotlight this defence relationship. Now it’s uncertain if Obama will be coming at all, much to the delight of Chinese officials who see the U.S. pivot to Asia as pure provocation. It’s hard to pivot when you’re tied up at home with budget blackouts. But that’s the shape of U.S. statecraft in Asia today.

As Obama Cancels His Trip, China's President Heads To Indonesia, Malaysia - Forbes

 

[cirr]

Trade volume between China and Indonesia expected to rise to over 66 bln USD

10-02-2013

http://player.cntv.cn/standard/cntv...d4&tai=outSide.english&videoId=20131002101946

By CCTV correspondent Andy saputra

China and Indonesia have thrived in economic cooperation in recent years. With stalling economic growth in the region, the relations between the fastest growing country in the region and the largest economy in southeast Asia becomes paramount.

These are the spearhead of beiqi foton motors, and they are on a mission to transform Indonesia’s truck business. A leading brand in China, the company enters Indonesian market 4 years ago and with the expanding good relationship between china and Indonesia, the company thrived.

"We like this g2g level to be on the second level, bring out to higher level, certainly it promotes awareness, brand awareness, consumer awareness of good quality china products into Indonesian market." Purnawan Sutiono, CEO of Foton Mobilindo said.

Foton Motors is one of many examples of Chinese companies finding success in Indonesia, after the 2 countries formed a strategic partnership in 2005. And with the ASEAN-China FTA, China is now Indonesia’s largest trading partner and the numbers are expected to rise to over 66 billion USD. With economic growth around the region is stalling, this relationship becomes paramount.

"China and Indonesia are playing an important role in the region’s economics, there are still many opportunities that will be beneficial not just for both countries but for the region." Roy Sembel, Economist said.

The visit of president xi jinping will be a catalyst for more cooperations, with reported deals worth over 20 Billion USD set to be signed during the 2 day visit.

Including Major infrastructure projects like the long abandoned Jakarta monorail and deals in the mining sectors along with one very important currency swap deal, given that Indonesia is suffering from a big trade deficit.

"That will be quite important for stability in monetary and financial sector, the us dollar has been too dominant in world trade, if we can use reminbi or rupiah as trade currency between the 2 countries, than we will not be dependant on US policies." Roy Sembel said.

Trade volume between China and Indonesia expected to rise to over 66 bln USD CCTV News - CNTV English

 

[xunzi]

I hope the this visit by our leader will include future defense cooperation. We really need a partner for the export version of J-31. No one better than Indonesia. I hope they partially help fund the program like with the South Korea's KFX.

 

[sahaliyan]

I hope the this visit by our leader will include future defense cooperation. We really need a partner for the export version of J-31. No one better than Indonesia. I hope they partially help fund the program like with the South Korea's KFX.

You are right,but we should first cooperate in economical side,we will build some industry zones in east Indonesia,agreed by both side

 

[xunzi]

You are right,but we should first cooperate in economical side,we will build some industry zones in east Indonesia,agreed by both side

We can do both. Indonesia is going to be in the $1 trillion gdp club very soon. They will be a good strategic partner in Southeast Asia, along with Malaysia and Thailand. If these three countries are willing to fund the program, it will accelerate the development much faster as the J-31 variant will requires much less demand of turbofan engine power, like WS-13G.

 

[cirr]

Deals, lots of deals, worth more than 30 billion dollars.

China's Xi to give first speech by foreign leader to Indonesia parliament

By Kanupriya Kapoor and Yayat Supriatna

JAKARTA | Wed Oct 2, 2013

Oct 2 (Reuters) - Chinese President Xi Jinping will on Thursday become the first foreign leader to address Indonesia's parliament, signalling a push by the Asian economic powerhouses to expand relations that were for decades frozen in hostility.

Xi arrived in Jakarta on a state visit on Wednesday, his first official visit to Southeast Asia's biggest economy and the world's third most populous country.

He will oversee the signing of a range of contracts, several of them focused on tapping the huge Indonesian resource sector to help feed the voracious Chinese economy.

A day before his arrival, China agreed a currency swap deal for the equivalent of $15 billion, to help Indonesia if its ailing currency comes under any more attacks. It has fallen more than 16 percent this year.

The urge to improve ties is in sharp contrast with the mid-1960s when Indonesia broke off relations with China, accusing it of backing an abortive coup it blamed on Indonesia's communist party, then the third largest in the world.

So bitter was the split, that until 1990 when the two resumed diplomatic ties, Indonesia effectively banned anything from China, and its nationals from going to China.

"From the Indonesian perspective, we need to welcome them because they're the biggest economy in the region," said Jusuf Wanandi, executive director at the Center for Strategic and International Studies.

"For China, this speech is quite important because they see Indonesia as a leader in ASEAN (the Association of Southeast Asian Nations)," he said.

"They realise that if we can't come to a decent resolution on the South China Sea issue, that means future relations with ASEAN will be at risk."

The 10-member ASEAN has been at odds with China over competing claims for territory in the South China Sea. Though Indonesia is not one of the countries with a claim, it has been openly critical of China's policy, concerned that it is creating tension in the world's fastest growing economic region.

After his Jakarta visit, where he will hold talks with President Susilo Bambang Yudhoyono, Xi heads to the island of Bali for an Asia-Pacific Economic Cooperation (APEC) summit, where the South China Sea is likely to be on the agenda.

MINING DEALS

Trade between China and Indonesia stood at nearly US$33 billion for the first eight months of 2013, making it Indonesia's second-biggest trading partner, after Japan.

The two will finalise a raft of deals, mainly in the mining sector, worth more than $30 billion. They include at least seven joint ventures in nickel and alumina smelting projects worth nearly $12 billion.

The deals will support Indonesia's bid to develop its domestic resource processing industries. Mining accounts for 12 percent of gross domestic product and China is a top buyer of those resources.

Indonesia plans to introduce an ore export ban next year to encourage miners to process the metal domestically and so lift the value of exports.

"So far, Indonesia exports raw materials such as coal, nickel ore to China to be processed. (They) become end products which are exported then to many countries, including back to Indonesia," said Industry Minister M.S. Hidayat.

Xi took over as president after changes in the Chinese Communist Party leadership last year.

A member of Indonesia's parliament said China had been quite aggressive in trying to build closer ties with Indonesia over the past 15 years and Xi's speech in parliament showed that both sides were serious about the relationship.

"I'd like to point out the difference between how Obama gave a speech in front of a university during his visit," said the legislator, who declined to be identified, referring to U.S. President Barack Obama's 2010 return to a country where he lived as a child.

"The Chinese president is quite different in his approach because he's actually trying to make a gesture towards parliament." (Addtional reporting by Rieka Rahadiana; Editing by Jonathan Thatcher and Robert Birsel)

China's Xi to give first speech by foreign leader to Indonesia parliament | Reuters

 

[StarCraft_ZT]

 

[帅的一匹]

good move by China

 

[cirr]

66 billion USD worth of two-way trade is too little.

Let's at least double it before 2020.

 

[xunzi]

I was skeptic about Xi at first but he is a strong leader. He gets the job done whenever he visits foreign leader. He also demonstrate soft power better than Hu.

 

[Viet]

10/02/2013
...
As Obama Cancels His Trip, China's President Heads To Indonesia, Malaysia

America under Obama has become a laughing stock of the world. Sad.

 

[Reashot Xigwin]

Indonesia makes new friends as its influence grows

By Ben Bland in Jakarta
Southeast Asia’s biggest economy expands regional role

Indonesia has long claimed to have a foreign policy of “a thousand friends and no enemies”.

But in reality, until recently, most of these so-called friends have been fair-weather at best and grudging acquaintances at worst.

Now, big powers from China to the US and Australia to Japan are sidling up to southeast Asia’s biggest economy in search of investment and trade opportunities, and closer diplomatic ties, as the rise of China and the concomitant US pivot to Asia reshape the entire region.

Teuku Faizasyah, the foreign affairs adviser to President Susilo Bambang Yudhoyono, says he has “never been busier”, which is a “show of confidence in what Indonesia has to offer”.

Indonesian diplomats have been earning their spurs, from mending fences within southeast Asia after a messy fallout over the response to China's assertiveness in maritime disputes, to sharing experiences with governments from Egypt, Myanmar and Tunisia about the transition from authoritarian rule to democracy.

At the same time, this nation of 250m people has been much more than a passive observer in the eastward shift of global economic power.

After the Asian financial crisis and the fall of the long-ruling dictator General Suharto in 1998, Indonesia has undergone a remarkable economic and political transformation.

From a basket case in danger of breaking up, the world’s most populous Muslim nation is now lauded by the likes of Barack Obama, US president, and David Cameron, British prime minister, as an example that Islam, democracy and prosperity can flourish together.

A bilateral meeting with the outward-looking Mr Yudhoyono will be one of the hottest tickets in town when 20 world leaders fly to the resort island of Bali next week for the Asia-Pacific Economic Co-operation forum. But, these days, major powers want more than just a chat on the sidelines of a conference and they are putting in the hard yards to make it happen.

On Monday, Tony Abbott, Australia’s new prime minister, came to Jakarta on his best behaviour, apologising for the arrogance of previous governments who have upset Indonesia by lecturing rather than listening.
In depth

Latest news and comment on the escalating disputes over islands and territorial waters between an increasingly assertive China and its neighbours

On Wednesday, China’s President Xi Jinping arrived for a two-day visit, his first to a southeast Asian nation since he assumed office.

A key plank of Mr Xi’s plans will be increased overseas Chinese investment in fast-growing economies such as Indonesia.

Although Indonesia has a “south-north” relationship with China, selling raw commodities like coal, palm oil and rubber and buying finished goods from smartphones to chemicals, Indonesian companies have invested more in China than the other way around.

Indonesia is as keen to reverse this situation as Chinese companies are to get access to Indonesia’s vast market, with a consuming middle class of more than 100m people.

With bilateral relations only taking off from the late 1990s, China is still playing catch-up when it comes to investment, behind the likes of Japan, South Korea, Singapore and the US.

China’s increasingly forceful international stance, from trade spats to the long-running maritime disputes in the East and South China Seas, has prompted a new battle for influence in southeast Asia, with US and its ally Japan on one side, and China on the other. Some old enemies of the US – namely Myanmar and Vietnam – have been pushed back towards its arms by fears about China’s hegemonic economic and political intentions.

Indonesia, which says it has no direct stake in the South China Sea disputes, sees itself – and is increasingly seen by others – as an “honest broker” on this issue.

As China, the US and other competing powers vie for influence in Jakarta, Indonesia will have to take tough choices and be willing to ruffle feathers if it wants to maintain its growing influence.

And the “no enemies” policy will be in need of a Bismarckian revamp.

Indonesia makes new friends as its influence grows - FT.com

 

[Lightningbolt]

America has become a laughing stock of the world. Sad.

Fixed.....

 

[Fsjal]

I think Indonesia is doing well. Great job Indonesia

But, if Indonesia wants to be in the Global Power stage, I think they would need a powerful nation, and China is a great choice.