Jakarta. The China-Indonesia ties would continue to have bright prospects on the economic front regardless of who wins the election, according to a Chinese diplomat.

China has heavily invested in Indonesia during President Joko “Jokowi” Widodo’s presidency. Indonesia is also one of the beneficiary countries of Beijing’s colossal infrastructure project: the Belt and Road Initiative. Next year, as many as 204.8 million Indonesians will vote for the next president.

This raises the question of whether Indonesia-China ties will remain solid despite the change in presidencies. Questions also arise about whether foreign investors are in "wait-and-see" mode before making their investment as they wish to have a better picture of how Jokowi's successor plans on leading Indonesia.

Chinese Ambassador to Indonesia Lu Kang commented on the bilateral economic ties ahead of the presidential race. According to Lu Kang, the memoranda of understanding (MoU) related to Chinese investment in Indonesia have been on the rise. As long as development remains a focus, it is likely that Indonesia-China ties will remain robust.

“We have already seen the enthusiasm from the Indonesian people about the benefits brought from the investment cooperation. Whatever the election’s election, the vast majority of Indonesians and statesmen have already seen that what is of utmost importance is a focus on development,” Lu Kang told B-Universe reporters on the sidelines of the 2023 China-Indonesia Media Forum in Jakarta on Wednesday.

“If that does not change, I don't have any doubt in the prospect of the future and brighter prospects of the cooperation between China and Indonesia in trade, investment, and many other fronts,” Lu Kang said.

Belt and Road Initiative

The Belt and Road Initiative -- Chinese President Xi Jinping’s brainchild – sees Beijing investing massively across the globe, spanning over 150 countries and more than 30 international organizations. One of the key Belt and Road Initiative projects is the $7.3 billion Jakarta-Bandung high-speed train, popularly known as Whoosh. 

The Beijing-funded Whoosh project was constructed by the Kereta Cepat Indonesia-China (KCIC) consortium. China Development Bank’s loans covered 75 percent of the costs, while the remaining 25 percent of the financing came from the consortium’s own funds, the Associated Press reported.

“Everybody today is excited about the Jakarta-Bandung, but that is just one of the projects of our cooperation. Commuting time has been shortened from 3.5 hours to 30 minutes. In the long run, this will create more points of economic growth along the line, maybe throughout Java or the country as a whole,” Lu Kang said.

Lu Kang also commented on the government’s plans to expand the high-speed train to Surabaya. 

“Whether [the project] will be extended to Surabaya or somewhere else, that is definitely up to the government and the people of Indonesia to make the decision. But whenever they make the decision, I personally get many of the Chinese corporations who will be interested in discussing with their partners in Indonesia,” Lu Kang said.

Government data shows Chinese investment in Indonesia totaled $5.6 billion in January- September 2023. This made China Indonesia’s second-largest foreign investor after Singapore ($12.1 billion). Indonesia-China’s trade reached $133.6 billion in 2022.

Chief Investment Minister Luhut Binsar Pandjaitan said in June that the project could be expanded to Surabaya, and he had also talked to Lu Kang about extending the high-speed train. The minister said he had prepared a preliminary study on the expansion.

This year marks the 10th anniversary of the Belt and Road Initiative.