China-Indonesia relations are best for both countries

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04:32

‍Close ties between China and Indonesia will help make the best for both, experts told CGTN.

Official data show that Indonesia is the largest economy in Southeast Asia and the third fastest growing economy after China and India in the Group of 20 (G20) industrialized and developing economies.

Indonesia has huge economic potential, but faces lots of challenges in the process of industrialization, said Li Yong, senior fellow at the China Association of International Trade.

Indonesia lacks capital, experience and technology, Li noted, adding that cooperating with China could help filling the vacancies, speeding up its modernization process.

01:12

The Southeast Asian country is also significant to China, according to Ding Yifan, senior fellow with the Institute of World Development under the Development Research Center of the State Council.

Thanks to sufficient young labor forces, Indonesia is an excellent destination for China’s labor-intensive manufacturing to shift to.

Meanwhile, Indonesia plays a leading role in the regional development, which could be a great base and foundation for China to maintain positive relations with other ASEAN countries, Li said.

Li explained that the cooperation between the two countries under the framework of the Belt and Road Initiative could have a positive and demonstrative impact among ASEAN countries, minimizing their concerns over China.

And Indonesia’s active role in the Regional Comprehensive Economic Partnership (RCEP) and Global Maritime Fulcrum (GMF) could also help carry the projects forward.

Trade is not the only topic, however. Ding also highlighted the people-to-people exchanges of tourism and education, stressing that such social and cultural relations, to some extent, are more significant than economic relations. “Because such exchanges not only connect leaders, but also connects people together,” Ding said.