“Chinese vice Premier Li Keqiang will pay official visits to Indonesia, Egypt, and Kuwait, from December 20 to 30”, reported news.xinhuanet.com on December 16. In the case of Indonesia, does it mean that there will be more agreements involving money that will be signed by the leaders of the two countries? If yes, can we say that the case of Vientiane will not happen in Indonesia, at least not now?
According to one of my informants, there will be “second stage of loan” to be discussed (and may be signed) soon. The loan may be used to finalise the Suramadu Bridge, a bridge connecting Java (the most populated Island in this country) and another island next to it. The founding of the bridge was started in 2003 with the financial and technical assistance from China.
Apart from the bridge project, it is also worth noted that Indonesia is recently to some extents relying on China for its power plant projects too. A local newspaper in East Java reported a week ago (Jawa Pos, Dec 13th) that Indonesia’s state’s owned power company (PT PLN) is in the middle of approaching China to gain more funding for its power projects. Among the banks that this company approaches are Bank of China, China Exim Bank, and China Development Bank.
But now, as the global recession is influencing many countries, including China, will China decide to continue giving more funding to Indonesia? Again, if the answer is yes, then a question of what is going on behind this decision will be an interesting question to pose.