By: Prashanth Parameswaran
From March 22 to March 24, Indonesian President Susilo Bambang Yudhoyono paid a state visit to China. The visit, which saw the inking of several agreements in a wide range of areas, is only the latest boost to bilateral cooperation which has increased significantly since the two countries forged a strategic partnership in 2005 (Xinhua, March 23). l. Even as these Asian giants continue to push their ties forward, however, the Sino-Indonesian relationship still faces several significant limits in the economic, security and political realms.
Sino-Indonesian relations have a long and rich history, as Chinese premier Wen Jiabao noted in a speech in Jakarta last year (Xinhua, April 30, 2011). Monks from ancient China studied in Sumatra and Java as early as the first century CE, Chinese merchants traded with ancient kingdoms in maritime Southeast Asia, while mosques were built by Chinese Muslim navigator Zheng He in Indonesia during his legendary voyages in the 15th century. Indonesia's relationship with China, however, underwent several decades of turbulence since they established diplomatic relations in 1950. Initial ideological solidarity, most clearly demonstrated in the Bandung Conference of 1955, gave way to hostility as Indonesia's second president Suharto came to power in 1965 in a counter-coup against communist elements funded and armed by Beijing and severed diplomatic ties in 1967 (China Daily, April 20, 2005). As a result, Sino-Indonesian relations were frozen during most of Suharto's New Order regime, which saw the repression of Indonesia's ethnic Chinese minority and deep distrust toward China’s communist government.
Though ties were normalized as early as 1990, it took years for both sides to begin the process of strengthening the relationship. China viewed Indonesia as valuable not only as a large market and a source of raw materials to fuel its economic development, but as a key littoral nation near strategic maritime chokepoints where China's energy flows, a vital partner in ASEAN, and increasingly as a fellow developing country in global institutions. As it emerged from the tumultuous Asian financial crisis in 1998 and elite distrust of China began to subside, Jakarta began to see Beijing as an important partner in its efforts to rebuild its economy, return to its traditional regional role as primus inter pares within ASEAN and increase its maneuverability vis-à-vis other powers in the global stage [1].
The idea of a “special relationship”, first privately proposed by China in 2001, gained traction and finally culminated in a strategic Partnership in 2005 when Chinese president Hu Jintao visited his counterpart Susilo Bambang Yudhoyono (People's Daily, April 26, 2005). Since then, both sides have been deepening and broadening cooperation in the political-security, economic, and socio-cultural realms. Total trade between Indonesia and China more than doubled between 2006 and 2011, when it hit $49.2 billion and China became Indonesia's second biggest trading partner. There has even been some cooperation in the military realm, such as on joint missile production and military exercises [2].
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