Xi Jinping meets Indonesian President Prabowo
Indonesia’s new president, Prabowo Subianto, may be more bark than bite when it comes to China.
On Saturday, Xi Jinping met Prabowo in Beijing.
- This is Prabowo’s first foreign trip since his inauguration last month and his second trip to Beijing since being elected.
Xi said the two countries should strengthen the “five pillars” of politics, economy, culture, maritime affairs, and security that underpin China-Indonesia relations and (MoFA 1):
- Oppose unilateralism and protectionism
- Support global multipolarity and inclusive economic development
- Synergize infrastructure plans
Following the meeting, the two sides issued a joint statement pledging deeper cooperation and signed USD 10 billion in deals covering areas such as food, energy, and tech (Reuters).
Get smart: Despite his past tough-on-China rhetoric and Indonesia’s recent moves to curb Chinese imports, economic realities limit how assertive Prabowo can be with China.
- Prabowo promised to raise Indonesia’s growth rate from 5% to 8% – that will require oodles of foreign (read: Chinese) investment.
- Indonesia’s drive to climb the mineral processing value chain relies in part on Chinese industry giants like CATL, who are active in the country.
Get smarter: Beijing also has plenty of reasons to secure good ties with Jakarta.
- Indonesia is the world’s largest nickel producer, a critical resource for China’s NEV industry.
- It’s also a major developing country that can lend credibility to Beijing’s global governance reform efforts.