Indonesia-China Trade Cooperation Encourages Partnership Patterns for G20 Countries

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Oleh Sugiarti, Minggu, 24 April 2022 | 15:11 WIB - Redaktur: Sugiarti - 666


Jakarta, InfoPublik – Researcher from the Institute for Development of Economics and Finance (INDEF), Agus Herta Sumarto, assessed that strengthening partnerships in Indonesia's digital economy cooperation with several countries is a good and positive effort. This pattern of partnership must be encouraged and established for all members of the G20.

One of them is trade cooperation that continues to be strengthened with the People's Republic of China (PRC), one of Indonesia's largest trading partners. The trade value of the two countries is significant at this time, reaching USD 100 billion. The momentum of the 2022 G20 Presidency also provides an opportunity for Indonesia to make the same effort and lead the global economic recovery process.

"Thus, the cooperation can be wider and bring larger and wider economic multiplier effect," he said when contacted on Saturday night, April 16,2022.

He also reminded that Indonesia, especially during 2022 G20 Presidency, could strengthen its position, not only as an object in digital economic cooperation. He said Indonesia must also become a player to have a great opportunity in this global cooperation. However, if Indonesia only become the target market for foreign products, then what [will] happen, he said, is that the increase in digital economic cooperation will make it easier for products from other country to enter domestic market.

“What [will] happen is disruptive digital innovation for the sustainability of domestic industries, especially micro, small and medium industries. This has to be anticipated,” he said.

Agus said the partnership should be planned in such a way to mutually benefit the parties involved. He emphasized that neither party should be harmed.

"We have to focus on the details of the points of cooperation. In fact, we must be able to direct the transfer of technology and transfer of knowledge from this collaboration and partnership,” he said

The main condition that must be met in order to take advantage of this partnership and cooperation, he continued, is to increase productivity and competitiveness. According to him, Indonesia is unlikely to be able to take advantage of the cooperation if the products produced are not competitive.

"Therefore, the first step that the government must take is to increase the competitiveness of domestic industrial products, especially MSME products. This is the main condition that must be done," he said.

According to him, if [product] competitiveness is good and on par with foreign products, it can be predicted that this digital economic cooperation will have a good impact. The good quality of local products will make Indonesian products strong in the global market.

"When these main conditions are met, the next step can be easier and more flexible," he concluded.

There are three main sectors of China's economic investment in Indonesia, namely mineral sector, renewable energy and digital economy. Meanwhile, Indonesia is also working on several other sectors that can be attractions for China, namely the pharmaceutical industry, especially biotechnology. However, one of the big investments that many people are waiting for is the electric vehicle sector with the presence of the world's largest battery manufacturer, Contemporary Amperex Technology Co. Ltd. (CATL).