Bringing China and Indonesia Closer

Exclusive Interview with Sun Weide， Charge d'affaires of the Chinese Embassy in Indonesia

In a speech in Jakarta in October 2013， Chinese President Xi Jinping put forward the proposal of jointly building the 21st Century Maritime Silk Road. When Indonesian President Joko Widodo took office in 2014， he proposed Indonesia’s Global Maritime Axis vision. In recent years， the two countries have actively synergized their respective initiatives and have enhanced all-round in-depth cooperation. Fruitful results have been achieved， enriching bilateral relations and opening a wider space for cooperation.

In 2015， China won its bid to build the Jakarta-Bandung high-speed railway， the first of its kind in Southeast Asia. The railway is an iconic project resulting from the synergy of the development strategies and mutually beneficial cooperation between China and Indonesia in the new era. It is also one of the major early-harvest projects of the Belt and Road. The construction and operation of the railway will be the responsibility of PT Kereta Cepat Indonesia， a Sino-Indonesian joint venture.

“This is a mutually beneficial cooperation project for common development，” said Sun Weide， Charge d'affaires of the Chinese Embassy in Indonesia， in an exclusive interview with China Report ASEAN. The Jakarta-Bandung high-speed railway will not only greatly ease traffic congestion between the two cities， but also drive the development of manufacturing， electric power， infrastructure， tourism， logistics， metallurgy and other industries along the line. The project will create jobs， increase tax revenues and improve people’s lives， shaping an economic corridor along its path.

With the rapid development of Sino-Indonesian relations， more and more Chinese enterprises have invested in projects in Indonesia， in turn promoting the economic and social development of the archipelago. Major iconic cooperation projects such as the Jakarta-Bandung railway are already well-known to the Indonesian public.

Against the backdrop of further development of the comprehensive strategic partnership between the two countries， which industries will usher in new development opportunities？ What are the Indonesian preferential policies for Chinese investment？ What are the new trends of bilateral cooperation in the tourism industry？ With these questions in mind， China Report ASEAN sat down for an exclusive interview with Sun Weide， Charge d'affaires of the Chinese Embassy in Indonesia.

>>China Report ASEAN： In recent years， Sino-Indonesian relations have developed rapidly. Would you please give us a brief introduction of the latest developments？ What are new opportunities that these developments have brought？

Sun Weide： Under the leadership of President Xi Jinping and President Joko Widodo （commonly known as Jokowi）， China and Indonesia have positively synergized “the 21st Century Maritime Silk Road” with “the Global Maritime Axis”. Substantial results have been achieved with comprehensive pragmatic cooperation and friendly exchanges in all fields. In May 2017， Jokowi made his fifth visit to China in just two years to attend the Belt and Road Forum for International Cooperation， where he had his sixth official meeting with President Xi. The two leaders reached important consensus on strengthening bilateral cooperation within the Belt and Road framework， injecting strong impetus into the comprehensive strategic partnership between China and Indonesia.

Over the last three years， with the synergy of our development strategies， bilateral cooperation and exchanges have improved. Chinese enterprises have accelerated cooperation with their Indonesian partners in terms of transportation， electricity， communications， mining， finance， equipment manufacturing， e-commerce and other areas. Sino-Indonesian bilateral cooperation is now on a new fast track. In 2015， China won the rights to build the first high-speed railway in Southeast Asia. This marks the first systematic export of China’s high-speed railway （CRH） covering the whole industrial chain with total factor productivity （TFP）. In 2016， China was Indonesia’s largest trading partner for the sixth year in a row. In that same year， investment from the Chinese mainland to Indonesia reached US$2.7 billion， a year-on-year increase of 324 percent. As a result， the Chinese mainland has grown from Indonesia’s ninth largest source of foreign investment to its third largest. Chinese mainland tourists visiting Indonesia in 2016 totaled 1.453 million， making the Chinese mainland Indonesia’s largest source of overseas tourists for the first time. At present， one-fourth of the electricity generated in Indonesia comes from power stations built by Chinese enterprises. More than 2，000 Chinese enterprises are investing and operating in Indonesia. Chinese products such as Lenovo computers， Huawei smart watches， Oppo cell phones and Gree air conditioners are very popular in Indonesia， while Indonesian products such as tropical fruits and edible bird's nests are very popular in the Chinese market.

Looking ahead to the future， there’s great potential and broad prospect for China and Indonesia to jointly build the Belt and Road. I believe that with our joint efforts， Sino-Indonesian relations will continue to maintain a good development momentum and bring more tangible benefits to our two peoples.

>>China Report ASEAN： At present， what are the main areas of Sino-Indonesian economic and trade cooperation？ What are the incentives for Indonesian enterprises to cooperate with Chinese enterprises？

Sun Weide： Sino-Indonesian economic and trade cooperation has been continuously strengthened， with investment being a highlight. According to Indonesian statistics， China is now Indonesia’s third largest source of foreign investment. The main areas of Chinese investment in Indonesia are power plants， mining， industrial parks， agriculture， real estate and manufacturing. With the further synergy of our development strategies， there will be more extensive space for cooperation in infrastructure， interconnectivity， production capacity and people-to-people exchanges.

The Indonesian government attaches great importance to attracting foreign investment. A series of preferential policies have been promulgated. First， the Indonesian government issued 15 sets of economic stimulus measures covering many areas of economic and social development. Foreign enterprises investing in Indonesia， including Chinese enterprises， will benefit from the measures. Second， the Indonesian government has streamlined the application process for large-scale investment projects. Within three hours， its one-stop service can provide applicants with nine different types of licenses. Third， the Indonesian government has relaxed restrictions on the proportion of foreign investment in more than 30 industries， which has created new platforms for more Chinese investment. In addition， the Indonesian Investment Coordinating Board （BKPM） has set up a China Desk， providing Chinese enterprises with more convenient services in Chinese.

>>China Report ASEAN： With the implementation of the Belt and Road Initiative， more and more Chinese enterprises are exploring the overseas market for international production capacity cooperation. How can Chinese enterprises exploring the Indonesian market not just survive but also prosper？

Sun Weide： At present， the international competitiveness of Chinese enterprises is on the rise， with stronger capabilities in capital， technology and management. Their adaptability to the international market has continued to improve. Meanwhile， there remain some risks and challenges for Chinese enterprises investing overseas. The Chinese Embassy in Indonesia will make an effort to improve its services for Chinese investors in Indonesia. On the one hand， we will continue to work with the Indonesian government to improve the business environment for Chinese investors. On the other hand， we will provide Chinese investors with more information on Indonesia’s investment environment， culture and customs， as well as risks and challenges. We will help them merge into local communities while enhancing their professional expertise.

I hope that all Chinese enterprises operating in Indonesia will have a long-term strategy for sustainable development， with a strong awareness of quality， brands and law， therefore helping Chinese products， Chinese technology and Chinese services earn a positive reputation. Chinese investors should also respect local religion and culture and undertake their social responsibilities by providing assistance to the underprivileged while also making friends with the local people. This is also a nice way to promote traditional Chinese virtues. I believe that with the further implementation of the Belt and Road， more and more Chinese enterprises will invest and prosper in Indonesia.

>>China Report ASEAN： Tourism cooperation has been a highlight of China-ASEAN cooperation. China has become ASEAN’s largest source of overseas tourists. The year 2017 marks the ASEAN-China Year of Tourism Cooperation. Would you please share with us the plans and trends of bilateral cooperation in tourism？ What are new opportunities in this regard？

Sun Weide： Tourism cooperation has always been an important component of Sino-Indonesian people-to-people exchanges. In 2016， 1.453 million tourists from the Chinese mainland visited Indonesia， a year-on-year increase of 27.3 percent. In the first four months of this year， a total of 683，000 tourists from the Chinese mainland visited Indonesia， a year-on-year increase of 45.76 percent. Getting married in Bali， watching the sunrise in Borobudur and diving in Manado used to be the topics of the privileged few in China. Today， those are on the list of popular destinations for Chinese holiday makers to Indonesia.

In recent years， the Indonesian government has introduced many initiatives to attract Chinese tourists. Since a visa waiver for Chinese tourists was introduced in June 2015， Indonesia's Tourism Ministry has adopted a number of other measures， including direct flights from major Chinese cities to Jakarta， Bali and Manado. Additionally， targeted products such as the \"Zheng He Tour Route\" attract Chinese tourists interested in history and culture. Cooperation with Baidu， Wanda and other Chinese companies in tourism promotion and infrastructure upgrading has helped the industry. Improvement in services in Chinese， including road signs， telephone hotlines and tour guides， as well as greater protection of the rights and interests of Chinese tourists have all helped.

This year marks the ASEAN-China Year of Tourism Cooperation. Within this framework， China and Indonesia are strengthening cooperation in product marketing， product development， tourism investment， personnel training， services， interconnectivity and other areas. Bilateral cooperation in this field will add new impetus to the development of Sino-Indonesian relations.