Luhut Confirms that Indonesia is pivoting to China

Gary

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Irritated with America, Luhut Reveals Jokowi's Reason for Coming to China
Luhut Pandjaitan said that previously Indonesia had no close contact with America so it was closer to China. Then what about today?
menko-luhut-menlu-china.jpg


JAKARTA - The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan opened up about the administration of President Joko Widodo who is more inclined towards China than the United States.
Luhut said that when receiving a visit from the CEO of the United States International Development Finance Corporation (IDFC) Adam Boehler was asked about President Jokowi's closer relationship to China than America.

“I am open, honest and convey [to Adam Boehler] that with China the relationship is very good. I also said to Adam, 'with you [America], you are also good with you', but it's only been the last one year, ”said Luhut while giving direction and socialization related to the Omnibus Law of the Job Creation Law at Lemhannas Friday (23/10/2020).
Adam Boehler is a close friend of US Predict Donald Trump. Boehler previously joined the Democratic Party. However, since Trump became President, he has been close to the Republican Party. Then Boehler was given the mandate to become the CEO of IDFC.

IDFC is an investment finance agency that focuses on developing countries in accordance with the mandate of the United States Congress. Boehler himself has visited Indonesia twice to show the seriousness of investing in Indonesia.

In January 2020 Boehler met President Jokowi accompanied by Luhut to convey his interest in investing. At that time, Luhut said that IDFC would invest in infrastructure. In fact, IDFC has prepared funds of up to US $ 10 billion.

This time, Boehler discussed investment opportunities in the Indonesian Sovereign Wealth Fund (SWF) after the Job Creation Law was passed. SWF itself is accommodated in the regulation.
Furthermore, Luhut said that previously Indonesia had no close contacts with American officials, so for the sake of investment, the government made an approach to China.

“Before, we had no contact with America. Don't have, 'ya because you(America) are hard to find, yes I am also angry with you', they make me look begging when I met, he met Yes, we have come here [China], so don't blame us, ”said Luhut telling Boehler .

However, during the meeting Luhut said that the direction for Indonesian cooperation had now shifted to America, especially in the past year.

"So now we have changed [changed], Indonesia has become America's strategic partner
. So actually how diplomacy is important, we must know, we are powerful, a country that cannot be harassed, ”explained Luhut.

According to Luhut, Indonesia is currently being considered by the two giants of the world, China and America, along with their feuds from an economic and political perspective. Therefore, the government will play the role of a balancing force.

"So the balance of power is important. Our population is the largest after China, India and America. From an economic point of view, we are not far away, we are rich from agricultural products. If it is managed well, it becomes a strong power. So negotiating with them is like this [while showing hands asking]. Negotiations must be the same, "he added.

As is known, Chinese investment in Indonesia in recent years has dominated. China is second only to Singapore. America is not even in the top five.

 
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Gautam

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So the balance of power is important

This sounds very familiar. I cannot count how many times our leaders have said the same. To some extent it was a good idea, in some other cases not so much. I do hope Indonesia can do better balancing than us.

Balancing would also require development of capabilities at home. Indonesia's path to powerful nation might not be very different form ours.
 

Gary

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This sounds very familiar. I cannot count how many times our leaders have said the same. To some extent it was a good idea, in some other cases not so much. I do hope Indonesia can do better balancing than us.

Balancing would also require development of capabilities at home. Indonesia's path to powerful nation might not be very different form ours.
The last time Indonesia do a balancing act resulted in the 20th Century greatest massacre. And the end of Sukarno


This balancing act is stupid
 

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Balancing act ?

China and US may invest in different spheres and end ip tearing Indonesia apart.

Make sure the investments are on your term and where you want it. And make sure to pay it off if it is a loan.
 

Nilgiri

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This balancing act is stupid

Its platitude in the end. Cold war era jargon is useful for it (while you maintain/need economic relations), but really in the end it will be seen by how/what Indonesia acquires in its hard power domain this decade and what cooperation it does officially and also unofficially....as to which threat is greatest in its estimation.

I am pretty sure Indonesia sees it as China increasingly. It might be a bit frustrating officially, but honestly India was going along the same route and it took this border conflict this year to really shake us out of that stupor..

Most countries (that aren't overt Chinese allies) dont have anything quite like that intensity with China....so it is natural to officially hedge/balance verbally at govt level....but prepare in hard non-verbal terms w.r.t the likely reality in the current and future.
 

Gary

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Balancing act ?

China and US may invest in different spheres and end ip tearing Indonesia apart.

Make sure the investments are on your term and where you want it. And make sure to pay it off if it is a loan.
ever since Trump pull the US out the TPP. Although Indonesia is not part of TTP sigantories,China is the one man player in terms of investment, not just here but all major ASEAN states

In recent years there's been some promise of investment coming from the US, we'll just have to see if it materialize
 

Saithan

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ever since Trump pull the US out the TPP. Although Indonesia is not part of TTP sigantories,China is the one man player in terms of investment, not just here but all major ASEAN states

In recent years there's been some promise of investment coming from the US, we'll just have to see if it materialize

I think there are different levels of investment. What any country should be wary of is that China delivers everything including physical manpower.

Having your own ppl involved will ensure more contribution to your own society.

Which is partly why I was wondering if Indonesias amendment to labour law would open up for this kind of Chinese influence and investments.
 

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Jakarta doesn't bode well with the rising of China for sure, but we are not so sure about the USA commitment in the region for long term. As a democracy country USA is bound to the condition of their domestic policy and swing of their moods. The same applied to Indonesia side too, well cautious approach is a must as unlike other US allies in the region we are not that close enough with US foreign policy and direction of their value.
 

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I hope Indonesia got some good stuff out of Trump before he leaves office. :)
 

Gary

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I don't put much hope , if ID wanna face China with only 33 F-16s then be it.
 

Madokafc

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I don't put much hope , if ID wanna face China with only 33 F-16s then be it.

The upper echelon is trying to get negotiation and put the most feasible option on the Table.
 

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Senior minister meets IMF, WB leaders in US​

17th Nov 2020 20:07
Senior minister meets IMF, WB leaders in US


Jakarta (ANTARA) - Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, held a series of talks with officials on the first day of his visit to Washington D.C. in the United States on Monday.

The executives he spoke with included CEO of Conservation International (CI), M Sanjayan, managing director of the International Monetary Fund (IMF), Kristalina Georgieva, president of World Bank, David Malpass, and United States Trade Representative (USTR) Robert Lighthizer.

Pandjaitan was accompanied by Vice Foreign Minister Mahendra Siregar, Vice State-Owned Enterprises Minister II, Kartika Wirjoatmodjo, Indonesian Ambassador to the US, Muhammad Lutfi, and Trade Minister's Expert Staff on International Relations, Arlinda Imbang Jaya.

“I think the meeting today was extraordinary. I did not assume that we would receive good responses from the meetings throughout today, including at the World Bank, IMF, Asia Group, and USTR, which have become the focus of our visit. During the dinner, the participants really reflected the presence of the two sides, and we are really friends,” Luhut said in a written statement released on Tuesday.

Pandjaitan discussed the possibility of cooperation with private partners in co-funding conservation and restoration programs for carbon credits in land and coastal areas in Indonesia with CI’s Sanjayan.

Sanjayan said Brazil, the Democratic Republic of Congo, and Indonesia are key countries for the forests they hold, and that Indonesia is the best in managing forests.

Meanwhile, during the meeting with the IMF and World Bank, Pandjaitan discussed the handling of the COVID-19 pandemic, national economic recovery, and Indonesia's commitment to improving and maintaining environmental conservation.

In turn, the IMF and World Bank officials lauded Indonesia's progressive steps in handling the challenges it has faced.

The IMF praised Indonesia for good fiscal discipline and issuing of stimulus packages without adding significantly to its debt when the crisis happened.

The World Bank president said he was pleased to receive explanations on the job creation law, which, he said, will benefit the Indonesian people.

"I am very delighted to be able to discuss the omnibus law on job creation with Minister Pandjaitan. Its implementation will greatly benefit the Indonesian people," Malpass said.

During the meeting with Robert Lighthizer, Pandjaitan expressed gratitude to USTR for its cooperation so that the GSP (Generalized Scheme of Preferences) review could be accomplished well.

Related news: IMF projects negative global economic growth this year
Related news: Government optimistic Indonesia's economy will remain strong


Translated by: Ade Irma J/Suharto
Editor: Rahmad Nasution

 

Gary

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The upper echelon is trying to get negotiation and put the most feasible option on the Table.
I don't think we have much time to spare.

They're treating defence procurement as if we are in a normal situation.

Our situation is not normal, our big neighbor is not normal.
 

TR_123456

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Its just a balancing act it seems.
Keep both sides friendly but show both the other option.
 

Indos

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Its just a balancing act it seems.
Keep both sides friendly but show both the other option.
Yup, normal gesture. Indonesia only buy small percentage of weapons from China. We never think we would buy big pocket weapon like fighter or warships from China like some countries under China influence do (even Malaysia do it). It tells where Indonesia geopolitical position lies.

It will likely remain so in the future but it doesnt necessary say we are going to be forever dependent on Western weapon either, it is why previous administration under SBY has made strategic defense program like jet fighter, cruise missile, ballistic missile, submarine, propellant, and others. Current administration under Jokowi still pursuit those programs, but with more sensitivity on the budget issues, particularly if the program requires a lot of money like KFX/IFX program.

Geopolitically, Indonesia and China will remain not easy due to China SCS ambition and the dispute we have in some part of SCS. Indonesia will also likely to continue backing up other ASEAN members who have more intense dispute in SCS as it has been done through the initiative to propose Indo Pacific concept that has been adopted by ASEAN as a group since July last year.

The concept highlight the need to solve any dispute in the region through international law, which actually shows that ASEAN as a group has opposed China nine dash line now. Previously, ASEAN was still divided on that issues since some ASEAN countries like Thailand, Myanmar, Laos, Cambodia are in cozy relationship with China and can be seen as already under China geopolitical influence. Malaysia under Najib is also soft to China.
 
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