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South China Sea and Malacca Straits and then across the Indian Ocean to the Persian
Gulf. China’s economic interests are related to securing natural resources,
particularly energy, and trade with Southeast Asia. China and ASEAN have a Free
Trade Agreement. China has a strategic interest in preventing the U.S. from using the
vulnerability of its SLOCs to put pressure on China. China has therefore sought to
develop alternate land routes, for example, through Myanmar.
China has sought to transform its strong economic position, particularly through the
ASEAN Plus Three (China, Japan and South Korea), into a security arrangement
through the ASEAN Regional Forum and direct China‐ASEAN arrangements. Since
1997 china has promoted it new security concept. China’s aim is to undermine U.S.
alliances and eventually to exclude the U.S. from East Asian security arrangements.
U.S. membership in the East Asia Summit and participation in the ASEAN Defence
Ministers Meeting Plus Eight process have set back Chinese ambitions.
Q4. You are quoted as observing that Indonesia will not be too friendly to China,
either. What are the reasons? The South China sea dispute as well?
ANSWER: Indonesia will cooperate with and stand up to China depending on the
issues in question. China’s support for the PKI – the Indonesian Communist Party – in
the 1960s has left a residue of suspicion towards Beijing. But China’s actions in not
devaluing its currency (the RMB) during the 1997‐98 financial crisis is seen as a plus.
In 1992, when China adopted a law on its territorial sea, it appeared that China’s
claims overlapped with the oil fields off Indonesia’s Natuna Island. Indonesia remains
wary because China has kept its territorial claims ambiguous. Chinese influence
within ASEAN, and particularly several ASEAN states (such as Thailand, Myanmar and
Cambodia) coupled with recent Chinese assertiveness in the South China Sea have
heightened Indonesia’s concerns about Beijing’s strategic intentions.
Indonesia has recovered from the instability of the post‐Suharto period. It is a
member of the G‐20. Until the Obama Administration, Indonesia was subject to U.S.
sanctions, particularly with respect to the sale of military equipment. This has now
been changed and Indonesia is developing a strategic partnership with the United
States. Indonesia is also chair of ASEAN this year. The bottom line is that Indonesia
has recovered its self‐confidence and will play a more proactive role in regional
affairs. It will work cooperatively with China where mutual interests are served, and
Indonesia will resist what it considers inappropriate Chinese policies. The South
China Sea features prominently. Indonesia will push to replace the current
Declaration on Conduct of Parties in the South China Sea (DOC) with a more binding
code of conduct.