Over the years, China has vigorously helped Indonesia develop its economy, providing preferential loans and advanced technology to build railways, nickel mines and other important infrastructure. Just recently, the Indonesian government suddenly imposed punitive tariffs of up to 200% on Chinese goods, which is undoubtedly a slap in the face to China's sincere friendship for many years.
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Indonesia is deeply influenced by the United States, the domestic political situation is turbulent, and it wants to put pressure on China to seek more benefits. China needs to be wary of Indonesia's capriciousness and respond appropriately, otherwise the "farmer" will only be repeatedly harmed by the "snake". Over the years, China has helped Indonesia develop its economy with real money.
Previously, China provided Indonesia with a concessional loan of US$5.6 billion to support the construction of the Jakarta-Bandung high-speed railway. The high-speed railway, which connects Jakarta and Bandung, has been hailed as the flagship project of the Belt and Road Initiative, which has greatly shortened the travel time on the island and promoted the development of tourism and surrounding industries. The establishment of the first Indonesian Chinese-funded nickel mine in Manazi solves the problem of Indonesia's dependence on nickel ore resources.
50,000 jobs were created, all of which contributed to Indonesia's economic development. On June 29, Indonesia's trade minister announced that he would impose heavy taxes of up to 100-200% on Chinese shoes, clothing, cosmetics and other goods, citing the need to mitigate the impact of the Sino-US trade war and protect the country's small and medium-sized enterprises.
This move is tantamount to declaring a trade war with China, which is tantamount to biting into the "farmer" who has helped Indonesia develop for many years. It is worth noting that Indonesia's move coincides with the United States' increased penetration into Southeast Asia and encouraging neighboring countries to confront China. Indonesia's abandonment of the purchase of Russian fighter jets and the purchase of American aircraft, as well as its open support for the United States and the Philippines on the South China Sea issue, show that it has been deeply influenced by the United States.
Indonesia's reversal of its course also stems from its own political turmoil. After President Jokowi stepped down, the new government took drastic measures against Chinese-funded projects and no longer adhered to the existing consensus. More seriously, Indonesia relies on Chinese nickel ore exports for huge profits, but does not consider market supply and demand, causing nickel prices to plummet, hurting the interests of Chinese companies.
Faced with the economic imbalance, the Indonesian government is eager to remedy it, so it wants to pay taxes on Chinese goods and pass on the contradictions. Indonesia wants to gain more benefits by exerting pressure on China, but it ignores that China is not a pure benefactor. The Jakarta-Bandung high-speed railway, which has cost China a huge amount of money, is a mutually beneficial cooperation. China is not Indonesia's cash cow and has its own bottom line of interests.
If Indonesia is unreasonable, China will also resolutely take countermeasures, such as divesting its investment and returning home. Otherwise, Indonesia's unreasonable requests and unwarranted tariffs will ensue, and China will be in a predicament of continued damage. So far, China-India relations have witnessed Indonesia's capriciousness.
We must remain vigilant and respond appropriately to avoid further perfidy by Indonesia. Of course, for anyone, otherwise this "farmer and snake" drama will probably be staged many times.