PEOPLE’S REPUBLIC OF CHINA – INDONESIA BILATERAL RELATIONS : CHINA’S INVESTMENT IN ELECTRICITY SUPPLY IN EAST KALIMANTAN PROVINCE (2013-2015)

Abstract

Bilateral relations is the important factor in order to crate stability of good partnership. Across the globe, many governments have devised a number of special relationships in their foreign policy, with neighboring and distant countries, as well as with some multilateral organizations, as done in Indonesia. Indonesia itself is a big country and rich in abundant natural resources. The role of the Indonesian government in various ways that support the development process is an innovation that is desperately needed in this country. As well as the established of bilateral relations between Indonesia and China, it is something very important that both parties help each other in all processes which include in all sectors, such as economic sector. The process includes several activities which one of them is about Chinese direct investments to Indonesia. Indonesian government will certainly strengthen the bilateral relations with the Chinese government following by the visiting President Joko Widodo to Beijing. In a state visited by President Jokowi which received by the People's Republic of China's President (PRC) Xi Jinping, the two leaders involved to strengthening cooperation in the energy development field. Particularly, the President Jokowi invited the Chinese party to increase for the further flow of direct investment in various fields in Indonesia, where President Joko Widodo has launched a program to increase the electricity capacity up to 35,000 MW. In Indonesia itself, especially in rural areas there are still many problems to faced, such as economic growth, inadequate infrastructure, and also the problem of unstable energy supply. Without a supply of adequate electricity, the activities of local community will also be affected. As happened in the Kalimantan island, especially in the East Kalimantan province, where actually Kalimantan itself is known as abundant producing of natural resources for energy support. However, the lack of facilities and infrastructure which are not supporting for the growth of electrical energy supply in rural areas. This create the polemical for societies and local government because of delaying the activities and quality of life. Electricity is an essential element for development, with the existence of adequate electricity will support all the development activities which has been organized by the government. Under the Joint Statement which was signed and approved by Indonesia and China, both sides have agreed to establish and strengthen the cooperation in various fields, such as trade, investment and economic development, indutrial and infrastructure, maritime, technology and culture. But the main thing is the cooperation in energy sector development, which is the power plant developing and investment in rural area, East Kalimantan province.