When I actually arrived in Indonesia, I realized that Indonesia is actually the least anti Chinese country in the world, and currently the country with the least anti Chinese conditions
——Chairman Chen Riling
Dr. Qiu Zhenhai, founder of the Zhenhai Society, holds a PhD from the University of T ü bingen in Germany, is a renowned political commentator and scholar, expert on China’s transformation and strategic issues, a PhD from the University of T ü bingen in Germany, a senior member of the London International Institute for Strategic Studies, a former commentator for Phoenix TV, chairman of the Hong Kong Globalization Center, and host of programs such as “Zhenhai Listening to Wind” and “Global Strategy”.
This time, Dr. Qiu will have a deep dialogue with Mr. Chen Riling, Chairman of Wanxinda Holdings and President of the Guangdong Chamber of Commerce in Indonesia, to analyze the historical changes and current situation of China Indonesia relations, look forward to the broad prospects of cooperation between the two countries, and deeply explore the unique opportunities and values of Chinese enterprises going abroad to Indonesia.”
Dr. Qiu: “How do you view the relationship between China and Indonesia?”
Chairman Chen Riling: “Most Chinese people have a negative perception of Indonesia, that is, Indonesia is anti Chinese and unfriendly, and even thinks that Indonesia may be the most anti Chinese country in the world. But this is actually a misunderstanding. When I really arrived in Indonesia, I found that Indonesia is actually the least anti Chinese country in the world, and also the country that does not have the conditions to exclude China at present.”
Dr. Qiu: “What are the reasons for the transformation of China Indonesia relations from the most anti China to the least anti China now?”
President Chen Riling: “Historically, the root cause of Indonesia’s anti Chinese phenomenon was the impact of the specific political environment, especially the two large-scale anti Chinese events in 1965 and 1998. With the subsequent political reform in Indonesia and the great efforts of the two generations of overseas Chinese in the past 60 years, today’s friendly scene between China and Indonesia came into being. Indonesian President once visited China twice a year, not only to maintain friendly relations with China, but also to promote economic cooperation between the two sides under the initiative of the” the Belt and Road “. There are 160 million young people in Indonesia, and children are watching” Beautiful China “. They aspired to study in China and live in China when they grew up, which is a pursuit of the new generation of Indonesia. When this generation grows up, China and Indonesia will move towards more and more friendly relations.”
Dr. Qiu: “What is Indonesia’s strategic position internationally? Do you think it is appropriate for Chinese companies to go abroad to Indonesia at present?”
Chairman Chen Riling: “Among Southeast Asian countries, Indonesia is the largest country with a population of 280 million. The importance of its geographical location is beyond doubt. Although the United States has been laying out in Indonesia since the 1960s, it is our Chinese state-owned enterprises and central enterprises that can truly bring infrastructure to Indonesia. 15-20 years ago, our state-owned enterprises and central enterprises began to participate in Indonesia’s infrastructure, including power plants, docks, highways, and high-speed railways; some private enterprises in China have also participated in Indonesia’s investment in smelting and mining, thus forming the economic pillar of Indonesia. With the efforts of our 20 million overseas Chinese, the trade between China, India, and Indonesia is even more important compared to the relationship between the United States and Indonesia. One floor. From the 45th anniversary of China’s reform and opening up to today, Chinese enterprises have gradually matured. Our management capabilities, digitalization, and systematization all possess the ability for globalization. So for Chinese companies, now is the best time for globalization and also the time when the world needs us the most. We’re going out now, it’s different from going out 20 years ago. Because over the past 40 years, we have achieved success in industry.”
Dr. Qiu: “Compared to other Southeast Asian countries such as Vietnam, Thailand, and Malaysia, what unique charm and value does Indonesia have as a base for Chinese manufacturing companies to go global?”
Chairman Chen Riling: “In the past, when it comes to going global, from 2006 to 2017, the preferred destinations for Chinese companies to go global were Vietnam, Malaysia, and Thailand. But today, the salaries of employees in these countries have reached a certain high level, even reaching more than 4000 RMB to hire an employee, and the local industrialization has also been relatively mature, reaching a level of nearly 40 years. There are also some other countries with unstable political situation or too small population, which is not conducive to the stable development of enterprises. Compared with Indonesia, Indonesia has a population dividend of 280 million, and the current wage level is relatively low, about 1000 RMB. After our investigation, there is a certain gap in the wage level of each county; In terms of industrial maturity, due to its remote geographical location and past forgetfulness, Indonesia currently has significant room for development.”
Dr. Qiu: “In summary, the issue of anti Chinese sentiment in Indonesia has been largely resolved, and the political environment is relatively stable. How do you view the impact of political stability on the development of a company?”
Chairman Chen Riling: “On the topic of political stability, I think I need to specifically share my views. Political stability is the first element of going global. Without security, everything is just empty talk. The root of political stability comes from political party relations. Where we entrepreneurs invest, the head of state of this country is particularly important. Whether the president can be re elected is a very important criterion. Changes in the national leadership team also have certain risks in the eyes of our enterprises. This is a political risk that may be brought about, and it is worth paying attention to. In Indonesia, political parties have a multi-party system and there is no opposition party. Therefore, in the process of going global, to see the stability of this country, we first observe its political environment
With the continuous deepening and expansion of China Indonesia relations, the areas of cooperation between the two countries have become increasingly extensive, from economic and trade cooperation to cultural exchanges, from infrastructure construction to people to people friendship, significant achievements have been made. Chairman Chen Riling’s sharing revealed the process and underlying reasons for the transformation of China Indonesia relations, as well as the strategic layout and challenges faced by Chinese companies in Indonesia’s development. He emphasized the importance of political stability for business development and pointed out that Indonesia, as the most populous country in Southeast Asia, has enormous market potential and development space.
Looking ahead, we have reason to believe that with the joint efforts of China and Indonesia, the relationship between the two countries will become closer and cooperation will deepen. Chinese enterprises will continue to write brilliant chapters in Indonesia, and bring more benefits and benefits to the two peoples. At the same time, we also look forward to more Chinese companies going global and contributing to the prosperity and development of the global economy.
On the current global economic landscape, Indonesia is becoming a new blue ocean in the eyes of many Chinese companies due to its unique demographic dividend, thriving industrialization process, and untapped market potential. So, in the face of this emerging market full of opportunities and challenges, how will Chinese companies accurately layout, grasp the demographic dividend and market potential, and ride the wave of globalization to open their own new chapter?
Stay tuned for the next issue of ‘Indonesia Dividend, Corporate Win Win: Indonesia’s Potential and China’s Globalization Path’. Wanxinda Holdings will continue to explain how Chinese companies can find new growth points in the global market!
