Chinese Circles Question Indonesia's Stance; JMSI Chairman Criticizes Intermediaries and Oligarchs

JAKARTA - A number of circles in China question the Indonesian government's policy, which they consider to be unfriendly to entrepreneurs from that country, especially in the mining sector. The question was conveyed by Prof. Li Renjin from the University of Hainan when talking to UIN Syarif Hidayatullah's foreign relations observer and also the General Chair of the Indonesian Cyber Media Network (JMSI), Dr. Teguh Santosa, last week in Hainan, China. According to Teguh, similar questions also arose from the leadership of the All China Journalists Association during the JMSI visit to Yunnan and Hainan. Teguh said the current government policy is not aimed at being hostile to Chinese entrepreneurs. The government of President Prabowo Subianto, said Teguh, is correcting the problems of trade and foreign cooperation which have involved intermediaries for a long time. He assessed that the intermediaries made Indonesia not get the maximum results from exports. Commodities sold abroad are large, but the income received by the country is often much smaller. "The problem is not because the Indonesian partners or friends are not good, but because the intermediaries are deviating," said Teguh as quoted in a recording of a dialogue with Prof. Li Renjin from the University of Hainan on Tuesday, July 21. According to Teguh, the problem also arises from interest groups who work together with the bureaucracy for their own benefit. Teguh said Prabowo often used the term deep state to describe the network of interests or economic oligarchy. The government, said Teguh, is trying to clean up practices that are detrimental to state revenue. One of the steps taken is to require that foreign exchange from exports be kept in the country for at least one year. However, Teguh assessed that the policy has not been maximized. The government then prepared an institution that would record export productivity. This institution is expected to record the number of commodities sold abroad and the income that Indonesia should receive. According to Teguh, more accurate records are needed because the government needs a large cost to build a better generation. So far, some financing sources are considered leaked due to the actions of groups that take advantage of trade and resource management. He emphasized that the improvement should not be read as an anti-Chinese attitude. Indonesia needs to strengthen communication with friendly countries so that trade is more fair and transparent. Teguh also said the government was considering a number of elements of the Deng Xiaoping development model which was one of the foundations of China's progress. However, its implementation must be adjusted to Indonesia's conditions and interests. According to Teguh, who is also a senior journalist, Indonesia's trade relations with China and other partner countries will improve if export data, state revenue, and resource management are improved in an open and accountable manner. Source: VOI English