China Strategic & Predatory Business Practices: Indonesia welcome foreign tade, investment and business relations with any country.
China Strategic & Predatory Business Practices:
Indonesia welcome foreign tade, investment and business relations with any country.
Foreign investment is one of the key feature of Indonesian economic development.
Foreign investor benefits from access to abundance of raw materials, natural resources and competitive labor force. The bureaucatic maze and corruption, however, are key obstacles to investment and growth.
Indonesia benefits from infusion of capital, technology transfer, job opportunities and access to international market.
Iis true for decades of foreign investment. Unfortunately, it is less true of foreign investmrnt from China. Why:
1. China received 20 years tax holiday
2. Bring all employees to the project (management, skilled & unskilled workers, drivers, cooks & security staff). In the past, foreign investor from other countries, just bring a few expatriate staffs. Mahathir was able to renegotiate, China workers only max 5% of total workers. Indonesia hv no such limit.
3. Most reallocate unused older plants dan factories, as China has a lot of indusrial overcapacity
4. If China lend money to finance the projects, it is a regular loan, but "loan to owned"
5. In case like High Speed Train Jkt Bandung: iniatial plan cost was cheaper than the Japanese. But during constraction, there were multiple price escalation and delays. Likely, the final cost 50-60% more the original one. Along with price escalation, the Indonesian equity fastly dilluted along the way
6. Some Chine projects in Indonesia are strategically-driven, not comercially-driven. Such as extension of Medan ports - by controlling Johor New Ports & Medan Ports, China's controlled the strategic Straits of Malacca. China also get the right to developeng port of Bitung, North Sulawesi -- capable of locking the second strategic sealane Lombok-Makasar-Menado Straits
7. The strategic ports project like Medan dan Bitung are highly inflated, the scale much bigger than commercially-justified. The aim is to lead it into default, "lend to owned" -- China control. Just like the case big navy ports in Srilangka & Pakistan, huge size and inflated cost, the led to extension of China control from 99 years to 198 Years (twice longer)
8. The practice of bribing government officials are rampant.
9. Indonesia trade with China always deficit , and they dump a lot China good with price lower than their cost.
Need to renegoatiate, fair trade, investment & economic relation with China. No Military-driven projects. !!
Projects China (Proyek2 China):
Perjalanan Kereta Cepat: 'Ditikung' China Hingga Biaya Proyek Bengkak
Pada akhirnya, beban akan kembali ke pemerintah kelak. Untuk itu, audit terhadap proyek yang kontraktor utamanya berasal dari Cina ini menjadi penting. https://lokadata.id/artikel/siapa-tertimpa-beban-kereta-cepat-indonesia-cina #LokadataID lewat @LokadataID
Poor Countries Borrowed Billions from China. They Can’t Pay It Back.
Pakistan economic crisis intensifies as China refuses to provide debt relief
After Port City, Gota Set To Sell Colombo Fort, Slave Island Heritage Buildings To China-Backed Firms https://www.colombotelegraph.com/index.php/after-port-city-gota-set-to-sell-colombo-fort-slave-island-heritage-buildings-to-china-backed-firms/
Data released by Chinese Customs states that the total value of Indonesia's trade with China in 2020 will reach 78.5 billion United States (US) dollars.
Based on the total trade value, the value of Indonesia's exports to China reached 37.4 billion US dollars.
Meanwhile, the value of Indonesia's imports from China in 2020 reached around 41 billion US dollars, down.