The Republic of China on Thursday last week celebrated its 113th anniversary with events held domestically and internationally, including in Indonesia. Over the past 113 years, Taiwan has developed into a respected economic and technological power.
However, the nation’s position in global geopolitics, especially regarding its relationship with the People’s Republic of China, remains a sensitive topic. Taiwan’s ties with Southeast Asian countries, particularly Indonesia, have strengthened in the past few decades despite a lack of official diplomatic recognition.
Indonesia does not recognize Taiwan as a sovereign state, because it adheres to a “one China” policy. Nevertheless, informal relations between Taiwan and Indonesia have long been close, especially in the economic sector.
Taiwan is one of Indonesia’s important trading partners, and its investment in different industrial sectors in Indonesia has been significant. Over at least the past eight years, Taiwan has promoted its New Southbound Policy.
Representative to Indonesia John Chen (陳忠) revealed at the “113th National Day Reception of the Republic of China (Taiwan)” in Jakarta that Taiwan’s total investment in Indonesia ranks among the top five foreign investments in the country, having created approximately 1 million jobs for Indonesians.
Bilateral trade between Indonesia and Taiwan reached more than US$10 billion last year. That shows that despite diplomatic limitations, the economic relationship between the two countries continues to grow rapidly.
Furthermore, Chen mentioned that Taiwan’s future investments would focus on regional cooperation with the Digital New Southbound Policy, integrating Taiwanese businesses to deepen technological relations with Southeast Asian countries.
On the other hand, Indonesia is the largest source of migrant workers in Taiwan and the second-largest source of foreign students in Taiwan. Data from the Taipei Economic and Trade Office in Jakarta showed that about 400,000 Indonesians live, work and study in Taiwan. This is largely due to the numerous education scholarships offered by the Taiwanese government, making it an attractive destination for Indonesian students.
However, despite the close ties between Taiwan and Indonesia, perceptions of Taiwan among the Indonesian public remain mixed. One of the key factors is media and educational exposure concerning Taiwan’s geopolitical position. Most Indonesians might only understand Taiwan within the context of its political rivalry with China.
For some Indonesians, especially those working in Taiwan or who have family members working there, the country is often viewed as a land of opportunity. It offers relatively high wages and better working conditions than other East Asian countries.
Meanwhile, among Indonesian academics, Taiwan is seen as an innovative country capable of competing on the global stage. Known for its advanced industries in semiconductors, information technology and green energy, Taiwan has inspired many young Indonesian entrepreneurs and professionals.
As such, Indonesia’s decision to continue adhering to the “one China” policy creates ambiguity. For Indonesia, maintaining a balance between its relations with China and Taiwan is challenging.
Indonesia seeks to maintain good relations with China, one of its largest trading partners and sources of foreign direct investment. At the same time, it also recognizes the importance ties with Taiwan. Therefore, Indonesia tends to tread carefully to avoid getting caught up in the conflict between them.
In this context, the relationship between Taiwan and Indonesia is expected to continue growing, particularly in the areas of economy and education. On the other hand, Taiwan also needs to enhance its public diplomacy campaign in Indonesia.
Increasing cultural exchanges, expanding scholarship programs and strengthening educational cooperation could be effective steps to improve Taiwan’s image and understanding among Indonesians.
At its 113th anniversary, Taiwan can serve as an example to Indonesia of how a small country can survive and thrive amid global pressures. For Indonesia, its relationship with Taiwan reflects pragmatism and shared interests.
This year marks an important milestone for the deepening ties between Taiwan and Indonesia. This year Taiwan held its eighth direct presidential election, laying the foundation for democracy. Meanwhile, Indonesia has also peacefully and stably elected its new president, who is to be inaugurated on Sunday. Therefore, the new administrations of the countries are expected to strengthen cooperation and relations for mutual progress.
Najamuddin Khairur Rijal is a lecturer in the International Relations Department of the Faculty of Social and Political Sciences at the University of Muhammadiyah Malang in Indonesia.
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