While the tension is rising in Natuna waters, Indonesia and China keep on trading. (Image via Berita Internasional)

Trade relations between Indonesia and China remain unscathed by Natuna dispute: Source

Alfonsus Adi Putra
Market & Investment
Export Import
Jan 08, 2020
2979
Indonesia’s Deputy Minister of Trade, Jerry Sambuaga, said that the trade relations between Indonesia and China remain usual amid the heating territorial dispute on Natuna waters. The transaction between the two warring countries remains a “smooth sailing”.

Speaking to the press on Tuesday, Jerry said that despite China’s breach of Indonesia’s territory, the trade has nothing to do with it. The trade between Indonesian and China keeps on following the procedures, norms, and agreements, added he.

Reportedly by the Indonesian Statistics (BPS), China is one of the key trade partners of Indonesia. Indonesia’s export to China in November 2019 reached US$2.41 billion. In exchange, China’s export to Indonesia amounted to a staggering amount of US$15.34 billion, way higher than Indonesia’s export.

Therefore, it is no surprise that Indonesia’s trade balance remains deficit toward the Middle Kingdom.

Let alone trade, China also plays an important part in Indonesia’s foreign investment. Indonesia’s Investment Coordinating Board (BKPM) tabulated a US$1,023 billion of Chinese investment in Q3 of 2019. That made China the second-biggest investor in Indonesia, only bested by Indonesia’s neighbor, Singapore.

The dispute between Indonesia and China on Natuna waters hailed bipolar views. Retno Marsudi had summoned China’s Embassy in Jakarta to hand over a letter of protest to China about the Natuna dispute.

On the other hand, Indonesia’s Minister of Defense, Prabowo Subianto, went soft toward China by opting for diplomatic talks since China is Indonesia’s “best friend”.

Source: https://bit.ly/2N68ogJ

Politics , Economy , Bilateral , Conflict , Territory , Dispute , Trade , Export-Import , ASEAN , Indonesia , Asia , China , Natuna , South-China-Sea