How China and Indonesia can build a truly sturdy partnership

Seven decades after the 1955 Bandung Conference, where representatives from 29 Asian and African nations convened, China and Indonesia have transformed into significant economic powerhouses and key partners. China now stands as the world's second-largest economy, while Indonesia leads the Association of Southeast Asian Nations (Asean), which is China's top trading partner.

China has consistently ranked among Indonesia's top three investors over the past five years, and it remains Indonesia's largest trading partner. This robust economic relationship, however, is not without its complexities. Indonesia recorded a substantial US$20.5 billion trade deficit with China last year. Concerns are mounting that the influx of high-quality, affordable Chinese imports is displacing domestic producers, particularly in the textile and manufacturing sectors.

In response, the Prabowo administration has implemented measures such as anti-dumping duties of up to 20 percent on Chinese steel imports. However, the China Chamber of Commerce has called for a review of these "substantial tax and levy increases" and stricter enforcement of forestry laws.

Despite a warm personal relationship between Indonesian President Prabowo Subianto and Chinese President Xi Jinping, the bilateral ties face potential obstacles. These include escalating pressure from the United States, growing apprehension within Indonesia about excessive dependence on Chinese goods, and a historical undercurrent of wariness among Indonesia's ethnic Chinese business community. These factors present potent challenges to the continued strengthening of the China-Indonesia partnership.