INDONESIA - CHINA ECONOMIC COOPERATION BILATERAL TRADE & INVESMENT (2010 - 2011)

Abstract

Since China and Indonesia established formal diplomatic relations 66 years ago, the bilateral trade between the two countries expanded rapidly, mutual investment increased steadily, and other aspects of the economic and technological cooperation has been fruitful as well. Though the two countries commercial linkage still face many difficulties and obstacles, however, there still exist broad prospects for development of China－Indonesia economic relations thanks to the fact that the two governments highlight the importance to further intensify economic ties and that the two economies are highly complementary. This research finds out that investment to promoting Indonesia and China economic relationship. The study of the reasons for the friendly relations between the two countries was conducted by studying the question "How does the economic relation connect China and Indonesia friendly development?". The main objective of this research is to examine the use of trade and investment to promote Indonesia and China’s economic relationship. This research look at trade and investment to illustrate the economic relations of the two countries. This research mainly explain economic cooperation of Indonesia-China in the context of the globalization and ACFTA. Looking to the future, Indonesian and China relations are the important bilateral relationships in the Asia-Pacific region, if China and Indonesia’s relation change that will affect China Southeast Asian countries economic relation. ASEAN plays a dominant role on the issue of regional cooperation, while China continues to promote its good-neighborly foreign policy, Indonesian and China relations will be stable and even closer, which in the future of East Asia cooperation will be a force that cannot be ignored.