From Straits Times
China, Indonesia forging a strategic partnership
JAKARTA - CHINA and Indonesia yesterday signed agreements to
establish a 'strategic partnership' that represents an extension of
Beijing's influence in the region.
Under the cooperation deal, Chinese President Hu Jintao promised
billions of dollars in aid, loans and private investment. Jakarta
was also hoping that it would lead to the supply of military
equipment from China, after being subject to a US arms embargo for
more than a decade.
The far-reaching 'strategic alliance declaration' focuses on
cooperation in areas such as trade, defence and technology.
Mr Hu signed the deal with President Susilo Bambang Yudhoyono one
day after attending the Asia-Africa summit in Indonesia over the
weekend.
At a joint press briefing after the signing ceremony, Mr Hu said:
'This demonstrates not only that Sino-Indonesian relations have
entered a new development stage but will also promote the
development of Sino-Asean relations.
'We want stronger ties with Indonesia - and to make serious efforts
to create a new international order in politics and economy that is
just and rational, and to safeguard peace and world
progress.'
Calling the agreement 'a new historic milestone', Dr Yudhoyono
said: 'Today, the People's Republic of China and Indonesia have
moved forward.'
Dr Yudhoyono said the two countries had agreed to step up bilateral
trade from the current US$14 billion (S$23 billion) to US$20
billion.
Officials said last week that China would also provide more than
US$10 billion in private-sector investment to help revive
Indonesia's economy.
Apart from trade and investment, Defence Minister Juwono Sudarsono
said Jakarta was seeking possible cooperation in arms and military
supplies.
'The Ministry of Industry and the Ministry of Science and
Technology will work with me to decide on strategic industries in
China, incorporating the army, navy and air force, specifically in
light arms,' he told The Straits Times.
'We think that conventional weapons cooperation is best established
through countries like China because they have the capability,
technology, and the specification that we need - but most of all
the pricing should be right,' he said.
The two countries would work out the arrangement over the next
three months, he added.
International relations analyst Bantarto Bandoro saw Beijing's
pledges of aid and investment as part of a drive to usurp
Washington as the dominant political and economic force in
South-east Asia.
'China wants to be a major political power in politics and economy,
and Indonesia is seen as one of the key players in the region,' he
said.
He believes that improved ties might not have been possible under
previous Indonesian leaders.
'Mr Yudhoyono is a moderate leader who understands the
opportunities for Indonesia in being cosier with China,' he
said.
The two countries restored diplomatic relations only in 1990 after
severing them in 1967 following an attempted coup by the Indonesian
Communist Party.
Other components of yesterday's agreement are:
# A memorandum of understanding on infrastructure and natural
resources;
# China's pledge of a further US$300 million worth of low-interest
loans for infrastructure development and reconstruction efforts in
Indonesia's disaster zones, on top of the US$400 million it already
committed;
# China's pledge of 30 million yuan (S$6 million) in financial and
technical assistance, and US$1.5 million in cash and US$500,000 in
goods for earthquake-stricken Nias;
# A deal on technical cooperation between Indonesia's
Meteorological and Geophysical Body and China's Earthquake
Administration in the fields of earthquakes and tsunamis, and
# A maritime pact that includes joint efforts to combat smuggling
and piracy, as well as arms supplies.
The strategic partnership with Indonesia follows China's move to
resolve outstanding disputes with India last month.
Analysts have said Beijing is vying for a slice of US trade and
influence in the Asia-Pacific region.
Paying attention to:
-"would lead to the supply of military equipment from China, after
being subject to a US arms embargo for more than a decade".
-"focuses on cooperation in areas such as trade, defence and
technology."
-"A maritime pact that includes joint efforts to combat smuggling
and piracy,
as well as arms
supplies."
Do you think it poses a threat to our security in Singapore
and our relation with China since we're a stauch ally of U.S.? this
would probably lead to an arms race in SE Asia. Given China's
population (few times more than U.S.) and population of
Indonesia(many times more than us) I think it is just a matter of
time before China becomes a world power and a matter of time before
Indonesia becomes a SE Asia Military power given the manpower and
resources Indonesia has if China aid them.
What do you guys think? Do you think it's mainly due to the lack of
support from US and US arms embargo that Indonesia is turning to
China?
Seems to me like another cold war case where US vs Soviet to see
who has more 'friends'
Please Post your comments.