Professional Documents
Culture Documents
A ND S I L K R O A D
Repositioning of State Sovereignty in
Indonesia-China Bilateral Relations
HASAN MUSTAPA
FARUQ ANSORI MELDA JUWITA
HASAN MUSTAPA
FARUQ ANSORI MELDA JUWITA
Authors:
Hasan Mustapa,
Faruq Ansori dan Melda Juwita
ISBN: 978 – 623 – 7633 – 43 – 3
Editor:
Riska Maelani
Design and Layout Cover:
MILE Institute Team
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maritimenews.id/global-maritime-axis-a-curious-vision-part-1/
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i
ACKNOWLEDGMENTS
December 2019
Faruq Ansori
ii
TABLE OF CONTENTS
Preface … i
Aknowledgements … ii
Table of Contents … iii
List of Figures & Tables … v
1. Synergy In Hegemony … 1
2. Politics of Hope in the Chinese Silk Road … 4
3. Diplomation of Indonesian Maritime … 7
3.1. Honeymoon of Indonesia-China Relations
In the First Era of the Jokowi Government
(2014-2019) … 8
3.2. Participation in the Belt Road Initiative
Project … 10
4. State Sovereignty at the Intersection … 12
4.1. Effect of Political Interests … 12
4.2. Toward The Rule of Law Sovereignty
(Environtmental Issues, Human Rights,
Economic Development, International
Concern) ... 13
5. Reflections Law Sovereignty … 15
5.1.Bilateralism … 15
iii
5.2.Investment Agreement … 21
5.3.Public Political Relations … 22
5.4.State Sovereignty … 23
6. State Independence Reposition … 26
6.1. Indonesia and China Agreement … 27
6.2. Law Equality … 29
6.3. Avoiding Government Abuses … 32
6.4. Attention to the Environtment … 36
6.5. Human Rights Issues … 41
6.6. International Concern … 45
7. Legal Equality in Investment Cooperation, A
Conclusion … 49
7.1.Research Findings (Economic
Considerations, Labors Problem,
Environtmental Pollution, Ambiguous
Foreign Policy, Government Decisiveness
… 49
7.2.Conclusion … 53
References … 55
Index … 68
About The Authors … 71
iv
LIST OF FIGURES
LIST OF TABLES
v
1. SYNERGY IN HEGEMONY
2
the approach to the rule of law of Hayek (2005: 57-
58) and Sornarajah (2010: 224-231) where the rule of
law includes aspects of (1) equality of law, (2) the
avoidance of abuse of power, (3) environmental
care, (4) human rights awareness and (5)
international concern.
3
2. POLITICS OF HOPE IN CHINESE
SILKROAD
4
One Belt & One Road is a project launched by
President Xi Jinping in 2013. The term was split into
economic belts along the ancient Silk Road and the
21st Century Maritime Silk Road. In addition to
deepening China's reform, the plan also sought to
open up and promote its environmental diplomacy.
The opening of the new Chinese silk route is
expected to ensure the security of energy supplies
from the Middle East and access to the markets of
the countries of South East Asia. Therefore, it can at
least reduce the influence of the United States in
Asia (Campos, 2015: 20; Sevilla, 2017: 83).
The Belt and Road Initiative (BRI) is a large-
scale BRI initiative initiated by China under Xi
Jinping's presidency, covering 2/3 of the global
population and 3/4 of energy sources. Namely: (1)
China's interest in securing energy supply lines to
the Middle East and Central Asia through
collaboration with countries in South Asia; (2)
China's ambition to take over the leadership role in
the Asian region through the fight to fund Japan's
fast-training project; (3) China's ambition is to
challenge US supremacy in both security and
economic fields. Moreover, if BRI is realized, China
will not only benefit economically, but will be able
to change the geopolitical constellation of the world
5
(Anam dan Ristiyani, 2018: 217-236; Ramadhan,
2018: 139).
In 2015, China set up the Asian Infrastructure
Investment Bank (AIIB) to provide financial
support for the One Belt One Road (OBOR)
initiative. As a strategic and geo-economic idea,
One Belt One Road is an attempt to merge land and
sea routes, as well as an effort to connect China
with a combined 70-plus countries around the
world. From the mainland, the idea of' Belt' begins
the development of road infrastructure along the
Xi'an, Xinjiang, Central Asia, Moscow, Rotterdam
and Venice roads.
In the maritime sector, the' Bridge' concept
seeks to link ocean infrastructure across South East
Asia, South Asia, East Africa and the
Mediterranean. Contained in the definition of'
way.' Not to be ignored, in order to support the
funding elements of the' Belt' and' Bridge'
infrastructure projects, China also built-in 2015 (Hu,
2017: 108; Callahan, 2016: 236).
6
3. DIPLOMATION OF INDONESIAN
MARITIME
7
From an economic and political point of view,
this dream is certainly very much in line with the
introduction of One Belt Road. Apart from being a
fellow Asian country, Indonesia also has the
opportunity to develop a wealth of human
resources, as shown in the above comparison.
3.1.Honeymoon of Indonesia-China Relations In
the First Era of the Jokowi Government (2014-
2019)
Indonesia has a water area that is larger than the
land area of 6,315,222 km2, the coastline of the island is
99,093 km, and the number of islands that have been
defined by the National Team for Earth Visualization is
13,466. The notion of the Global Maritime Axis
championed by Jokowi since 2014 has become the focus
of his government's policy, which has great ideals to
return Indonesia to its former glory as a seafarer nation
(Jalesveva Jayamahe). This strategy also underlines the
fact that Indonesia highlights the growth of the marine
sector in various aspects in the course of its
administration in 2015-2019 (Nainggolan 2015).
8
including Periuk, the provision of more fishing
vessels, the restructuring of the fish trade system,
the growth of human resources and a few other
issues. This effort shows the President's sincerity in
making Indonesia the world's maritime axis.
Indonesia's national interest in improving and
growing the economy through the world's naval
axle faces a number of internal management and
organizational challenges, as explained earlier.
Overlapping key roles and functions between
maritime management sectors, lack of coordination
between areas and growing sectoral egos are a
major managerial challenge.
While in the operational realm, the lack of
infrastructure to sustain maritime operations due to
lack of funds, rampant crimes in the marine sector
such as piracy, illegal fishing, breaches of national
borders and piracy pose significant challenges to
the realization of the global maritime axis.
In addition, each sector should support this
policy instead of becoming an obstacle to its
implementation. It recommended that horizontal
integrity between areas by integrated cooperation
should be a concern supported by infrastructure to
support the performance of each sector, particularly
in terms of security and marine patrols. This
consideration is nothing but the realization of
9
Indonesia as the world's maritime axis (Latifah dan
Larasati, 2017: 112-113).
Many countries are keen to accept plans for
maritime infrastructure projects that offer benefits
and can deliver tremendous benefits. It seems that
China has an attitude, even though it remains
cautious to carry out its obligations and support
later (Nainggolan, 2015: 167-190).
3.2.Participation in the Belt Road Initiative Project
Indonesia's participation in One Belt One Road
itself will become a blunder if it does not respond with
careful planning. China's maritime vision is a plan to
extend its reach, while Indonesia follows the path that
China has taken. If it is not supported by the power of a
strong naval infrastructure, it may be part of the
competition coordinated by the program. Ideally, the
convergence of the Chinese Maritime Silk Road has
important consequences for the Indonesian World
Maritime Axis. The inclination, however, indicates a
negative trend. The gains will be less than the losses.
10
micro and detailed description of the negative
impacts of the nexus between the Chinese Silk
Road and the Indonesian World Maritime Axis. In
addition, to monitor the negative impact of several
external maritime policy effects on security systems
in East and South East Asia (Majid; Fitriyanti, 2016:
355-374).
Singapore 9.2
Japan 4.9
China 2.4
Hong Kong 2
Malaysia 1.9
0 2 4 6 8 10
Amount (Million US $)
11
4. STATE SOVEREIGNTY IN
INTERSECTION
12
One of the supporting elements of state
sovereignty is the rule of law. For democratic states,
the rule of law is seen as obedience to existing rules
which, of course, contradict arbitrary government
action. Therefore, the rule of law requires equality
in which there are no special legal rights for certain
individuals appointed by the authorities. This is an
attempt to maintain equality before the law, which
is the opposite of arbitrary government (Hayek,
1944:72; Hayek, 2005:57-58).
4.2.Towards the rule of law Sovereignty
As far as state sovereignty is concerned,
according to international law on foreign
investment, a number of things have become global
trends, such as environmental issues, human rights,
economic development and widespread
international attention.
a. Environmental issues
Many environmental activist groups find
multinational corporations to be responsible for
pollution caused mainly in developing countries
where environmental standards are low. As a result
of lax regulation, multinational companies see
developing countries as a haven where they can
make profits without having to bear the costs of
13
dealing with the stringent regulatory standards
they face in their home countries.
NGOs believe that investment agreements
prevent actions taken against polluters when the
agreement ensures that violations of existing
investor rights are considered expropriation under
the contract. Arguments have also made it possible
for investment agreements to secure highly
polluted industrial exports to developing countries.
For this category, investment agreements may
include exceptions to allow the host country to
protect the environment (Sornarajah, 2010: 224-231).
b. Human Rights
Human rights issues are rarely mentioned in
bilateral investment agreements. However,
violations related to the suppression of dissension
on specific projects initiated by multinational
companies have been revealed in recent years.
Recent domestic lawsuits against the parent
company of a multinational company have accused
agents of these multinational companies of human
rights violations of the political elite of developing
countries, illustrating the extent of the problem.
Investment agreements that prevent the State
from influencing the improvement of the human
rights situation that may occur. Nevertheless, the
14
country or the forces who govern it are often also
involved in human rights violations with
multinational companies. Nonetheless, a successful
government will improve the situation and
discourage it from doing so by treating such
intervention as a violation of investor rights under
the agreement.
This issue is addressed by several agreements.
Safety, morality and public welfare benefits, the
principles used in international trade law, have
become part of several investment agreements.
Nevertheless, the extent of the use of phrases in the
investment agreement has not been determined. In
international trade, the court has not granted the
term reach that allows the interests included in the
formula to negate the benefits of free trade. There is
little reason to believe that the case will be different
when the term is called an investment agreement.
c. Economic Development
The premise underlying the investment
agreement is that foreign investment leads to
economic development and that foreign investment
agreements lead to a higher flow of foreign
investment. Both of these hypotheses have been
discussed. There is no evidence to suggest that
investment deals have led to higher levels of
15
foreign investment in the countries that have made
them. Several countries, especially the least
developed countries, have liberalized their foreign
investment laws and have signed a large number of
investment agreements without witnessing the
anticipated flow of foreign investment.
Institutions that previously supported this
agreement now have research that shows that there
is no evidence that it leads to a positive flow of
foreign investment and that it is conjecture. Since
the presumption underpinning this agreement is
that the flow of foreign investment leads to
economic development, there is no reference to
economic growth in the contract, nor does it
include important provisions for the promotion of
economic development. The role of the capital-
exporting partner in facilitating the flow of foreign
investment is not specified as an obligation in the
agreement, but rather as a permissive language.
The trend towards the incorporation of
development clauses in investment agreements will,
however, increase in momentum. The Doha
Declaration of the WTO Ministerial Meeting, which
mandates the study of investment as a possible
discipline within the framework of the WTO, calls
for the issue to be studied in the context of
development. These compromises would highlight
16
the need to ensure that investment agreements
include clauses addressing issues of economic
development and moving from investment security
models to economic liberalism to models that seek
to eliminate the harmful effects of foreign
investment while preserving profitable investment.
d. International concerns
Apart from the interests of the host country,
foreign investment in the country also raises
international concerns. International law has
moved to recognize that issues included in the
country's residential care can involve global values
and that, in this situation, the international
community has the right to ensure that changes
take place in the domestic case. The new classic
example is a revolution that has taken place in the
field of human rights. The State can no longer claim
that there have been serious violations of human
rights in its territory; it is only a domestic matter
and not a matter for the attention of other
international communities.
International law on foreign investment is
also moving in the same direction by embracing
principles drawn from the relevant fields of
international law. Although foreign investment is a
process that takes place entirely within the territory
17
of the host country, the host country can’t avoid
scrutiny by the international community. Such an
effort can’t prevent the main force of international
rules on domestic law which justifies such action.
In one instance, government interference in a
foreign investment contract occurred because a
sand mining project involving potential damage to
an environment listed in the World Heritage
Convention was found to be justified by a domestic
court. Something like this can’t, of course, be left
alone as a local problem. The definition of
sovereignty as an absolute term must be
reconsidered today. The inability of the ethnic
majority to control political dynamics and to
protect its citizens in different regions of the world
is evidence that the state can’t close itself to
international assistance under the pretext or in the
name of sovereignty. State sovereignty can’t be
used as a shield by national authorities to prevent
foreign aid to civilians in countries needing
international assistance and protection (Riyanto,
2012: 12).
18
5. REFLECTION LAW
SOVEREIGNTY
5.1.Bilateralism
Bilateralism plays a vital role in the pursuit of
liberalization. Bilateralism makes liberal trade politically
feasible at home, because it enables political actors to
19
manage the costs and benefits of local politics resulting
from losing and winning economic actors through
commercial collaboration. Bilateralism, however, is not
without issues. Concerns over domestic sales create
problems with law enforcement, which can contribute to
the termination or even reversal of liberalization.
Multilateral cooperation should address this problem of
compliance (Rohlfining, 2007: 254-255).
20
5.2.Investment Agreement
Investment plays a key role in a nation economic
development. Investment agreements capable of being
included in a number of contract goods and
arrangements, one of which is the ASEAN-China Free
Trade Agreement, which governs international trade
and investment ties between ASEAN member countries
and China. When carrying out this arrangement, of
course, there is also a need to enforce the concept of
reciprocity, where both countries must seek to provide
the same treatment so that both can benefit from the
investment they have made. One of the minimum
standards for the provision of care accepted by the
various investment agreements and the ACFTA is the
concept of fair and equitable treatment. This theory
addresses why, and how necessary, the host country
should give its investors fair care. This theory is also one
of the reasons why investors would feel attracted to
invest their money in a country in order to increase
investment flows.
21
treatment between Indonesia and China has not been
fully implemented. Indonesia still faces a number of
challenges in terms of providing legal certainty and ease
of bureaucracy and administration to Chinese investors
who invest their money in Indonesia. This is
demonstrated by the many overlapping central and
regional rules, the complex bureaucratic process, and so
on (Putri, et al., 2018: 295).
22
the economic and political power of the market, and the
need to examine each of these elements in order to
understand the orderly economy.
23
ensures that the country is not subject to additional
authority (Miguel Gonzalez Marcos, 2003: 1; Martin
Dixon & Robert Mc. Corquodale, 2000: 248). National
sovereignty and equality are qualities intrinsic to an
independent state as a matter of international law.
Recognition of state sovereignty and harmony between
countries is also the basis for state workers in the global
legal system (Ian Brownlie, 1990: 287).
24
has evolved in the most recent debate and practice,
so that state sovereignty can no longer be preserved
in an absolute sense (Michael J Struett, 2005: 70-180;
Riyanto, 2012: 5-14).
25
6. STATE INDEPENDENCE
REPOSITION
26
community's demands, both in terms of social
services, social security, meeting basic needs, and
so on. Contemporary developments in policy
direction should always focus attention on the
needs of fellow human beings in the form of civil
society (Mustapa, 2019:29). Likewise, bilateral
cooperation should be able to safeguard a variety of
things that could challenge the economic
independence and sovereignty of a nation.
6.1. Indonesia and China Agreements
In 2015, Indonesia and China agreed to work
together in eight fields to conclude a Memorandum
of Understanding signed at the Great Hall of the
People by officials witnessed by President Joko
Widodo and President Xi Jinping (AntaraNews,
2015). The eight MOUs have been signed, namely:
a. Memorandum of Understanding on Economic
Cooperation between the Ministry of Economic
Affairs of Indonesia and the Commission for
National Reform and Development of the PRC.
b. Agreement on the Jakarta-Bandung High-
Speed Railway Development Project between
the Ministry of State-owned Enterprises of
Indonesia and the National Reform and
Development Commission of the PRC.
27
c. Maritime and Search and Rescue Agreement
between the Indonesian National Search and
Rescue Agency and the Ministry of Transport
of the Republic of China. This MoU,
accompanied by the Remote Sensing
Agreement, was also signed earlier on 13
October 2014 The China National Space
Administration (CNSA) and the Indonesian
Maritime Security Coordinating Board signed
an agreement supporting the new efforts to
improve maritime safety.
d. The Memorandum of Understanding (MOU)-
signed on October6-contains the transmission
of remote sensing data by CNSA to Bakorkamla
Earth Stations covering the vast Indonesian
archipelago. These data were intended to
improve the early warning capability of the
Indonesian Maritime Security Coordinating
Board and to support maritime law
enforcement and disaster response. The MoU
follows the signing in 2012 of the Maritime
Cooperation Agreement between China and
Indonesia and the establishment of a bilateral
naval cooperation committee.
e. Preventing the Double Taxation Agreement
between the PRC and Indonesia between the
two countries.
28
f. The Framework for Space Cooperation (2015-
2020) between the Indonesian National
Institute of Aviation and Space (LAPAN) and
the PRC Space Agency. This MoU followed the
signing of the 2015-2019 Aeronautics and Space
Collaboration between LAPAN-CNSA in
Beijing, China 2015-03-27.
g. The Cooperation Agreement on Mutual Aid
between the Ministry of State-owned
Enterprises of Indonesia and the Development
Bank of China.
h. Agreement on Industrial and Construction
Cooperation between the Ministry of State-
owned Enterprises of Indonesia and the
National Reform and Development
Commission of the PRC (Jakarta Greater 2015;
Unspider 2014; Panda 2014).
6.2. Law Equality
The viewpoint of the State Legal Sovereignty
in the implementation of the Bilateral Policy in the
Maritime Silk-Shaft Route can be explained as
follows.
In Chapter III of the Basic Investment Policy,
Article 4(2) of the Law of the Republic of Indonesia,
Number 25, 2007 on investment, it is mentioned
that, in setting the required policies, the
29
government gives equal treatment to domestic
investors and foreign investors, while taking into
account national interests.
According to the government, the dispute
over the creation of a Chinese consortium company
overthrew Japanese companies in the Jakarta-
Bandung Rapid Train Infrastructure Project purely
on the basis of commercial considerations. In
comparison to Japanese companies that do not
respond to business-to-business schemes, Chinese
companies are willing to submit business-to-
business plans in the course of a fast-track project.
Where the financing of this project, without the use
of the state budget, reduces the risk of State losses.
Likewise, this proposal is not in breach of the
rules because the government has just carried out a
feasibility study with the Japan International
Corporation Agency (JICA) through the National
Development Planning Agency (Bappenas), the
Ministry of Transportation (Kemenhub) and the
Technology Assessment and Implementation
Agency (BPPT). Meanwhile, the strict selection of
project winners is based on the auction as shown in
the figure below:
30
Preliminary Consolidation Finalization
The funds for the construction
of the Jakarta-Surabaya Semi-
the government conducts a
Fast Train along the 748 km of
feasibility study with the Japan The government opens an open
5.5 hours by the speed of an
International Cooperation auction. Enter China after Japan
average of 160 kilometers are
Agency (JICA)
estimated to reach Rp 100
trillion
31
infrastructure in Indonesia to last a long time
(Yamin dan Windymadaksa, 2017: 217).
6.3.Avoiding Government Abuses
The issue of the 10 million foreign workers
invasion from China to Indonesia has spread.
While it has not been empirically proved that there
are discrepancies in the number of foreign
employees between the Ministry of Labor
(approximately 21 thousand) and the Ministry of
Justice and Human Rights (approximately 31
thousand people), it certainly needs serious
attention. The use of foreign workers is one thing
that can not be prevented, particularly when
foreign investment enters a country. Immigration
violations are among the problems faced by foreign
workers entering Indonesia.
Although the monitoring of foreigners is
regulated in Article 68(1) of the Immigration Act,
there is still a rise in violations of international
immigration. This was due to the weak cooperation
of the external control team and the lack of optimal
enforcement of the regulations relating to
foreigners and their activities in the territory of
Indonesia (Jazuli, 2018: 89).
Not surprisingly, on the basis of data from the
Ministry of Labor and Transmigration, foreign
32
workers, in particular from China, experienced a
significant increase, as shown in the following table:
Table 6.1. Foreign Workers Profile
No. Foreign 2017 2018 Increment
Workers (people) (people) (people)
17%
a. Cina
2% 2% b. Japan
34%
3% 3%
c. South Korea
3%
7% d. India
5% 10% 14%
33
Table 6.2. Foreign Workers Business Sector 2017 and 2018
No. Sector 2017 (people) 2018 (people)
4 direksi
18%
3 konsultan 2 manajer
15% 23%
3 konsultan
2 manajer
17%
22%
34
In Chapter VIII, Article 42(4) of the Law of the
Republic of Indonesia, No 13 of 2003 on jobs, it
specified that foreign workers were only able to
work in Indonesia for employment purposes.
Whereas Article 45 contains the obligations of
foreign workers to appoint Indonesian nationals as
accompanying foreign workers employed by them.
For example, the transfer of technology, the transfer
of expertise to foreign workers and the training and
training of Indonesian workers by the qualifications
of positions held by foreign workers do not apply
to foreign workers occupying the positions of
directors and commissioners. The increase in the
number of foreign workers contrasts sharply with
the increase in unemployment of the working era
as shown in the table below:
Table 6.3.
35
The table above shows an increase in
unemployment in high school, technical and
university students in 2017 and 2018. There has
therefore been an increase in unemployment in the
productive age since 2017. A total of 4,150,989 to
4,391,664 in 2018 or as many as 240,675 people. Not
yet seen, the transition of technology from foreign
workers to local workers, as required by the
Manpower Act, presents challenges to the
government. There are certainly a number of
concerns raised by a comparison of the rise in
foreign workers with rising unemployment
between 2017 and 2018. The government can be
said to be unreasonable if this process continues
and no real action responds to it.
6.4.Attention to the Environment
In Indonesia alone, about 1,000 Chinese
companies are engaged in activities in which 50 per
cent of them invest in Java, with information of
around 17 per cent of companies involved in
construction, 15 per cent in mining and 13 per cent
in electricity. Their presence is expected to help
increase local labor force, move technology and
skills, and enhance cultural exchanges between the
two countries (Saputri, 2018).
36
One of the issues that often emerges from
rising factories is the environmental contamination
of industrial waste. S. PT. For example, Kahatex is a
textile company founded in 1979 by Liang Hua
Song. Based on the inspection of the Citarum
Harum Survey Team-a collaboration of cross-
regional government agencies in West Java-at the
beginning of January 2018, along with a number of
other companies suggested that they would dump
waste into the river. Also, in May 2017, the
Coalition Against Waste, a coalition of West Java
Walhi, Bandung Legal Aid, the Society of
Environmental Concerns, and Greenpeace
Indonesia, won a lawsuit before the Supreme Court.
The Supreme Court annulled the Liquid Waste
Disposal Permit (IPLC) issued by the Regent of
Sumedang Regent to Kahatex Group, PT Five Star
Textile Indonesia and PT Insan Sandang Internusa.
Through disposing of its liquid waste in the
Cikijing River, a tributary of the Citarum River
(Sari, 2015; Perkasa, 2018).
Both Indonesia and China are involved in
environmental issues. In relations between
Indonesia and China, this problem is quite a
dilemma, particularly with regard to the maritime
question. The Chinese side, through an official of
the Ministry of Agriculture and Rural Affairs, said
37
that the Chinese government should impose a "zero
tolerance" penalty on domestic vessels that have
been found to breach high-sea fishing laws and
regulations. Liu Xinzhong, Deputy Director of the
Marine Fisheries Administration, also confirmed
that China is very concerned about the safety and
preservation of marine resources. In Indonesian
waters, from 2014 to 2018, only one ship from
China was sunk in the same timeframe as Vietnam,
which reached 276 (Katadata, 2019).
In 2016, however, an Indonesian patrol boat
intercepted a 300-ton Chinese fishing vessel, Kway
Fey 10078, which was fishing near the Natuna
Islands, where the "nine broken lines" marking
China's claim to the South China Sea overlapped
with Indonesian waters. According to the
Indonesian Minister of Fisheries, Pudjiastuti,
hunters are now switching tactics using new and
comprehensive technology. With a length of 150
km and a full 100 km of container, working from
the high seas and reaching the exclusive economic
zones of all countries outside national jurisdiction
(Rose, 2018).
In Part Two, Article 76(1) and (2) of the Law
of the Republic of Indonesia, Number 32 Year 2009
on Environmental Protection and Management,
provides that: (1) the Minister, the Governor or the
38
Regent / Mayor shall apply administrative penalties
to the person in charge of the company or operation
if a violation of the environmental permit has been
found under supervision. (2) Administrative
sanctions shall consist of: (a) written warning; (b)
government coercion; (c) the freezing of
environmental licences; or (d) the revocation of
environmental permits.
In addition to the waste problem in Citarum,
which includes not only Chinese companies but
also local businessmen and illegal fishing, the PT
explosion of the Pertamina pipe. KCIC (Indonesian
Chinese Fast Train) needs attention as well. This
problem is shown in the table below.
Table 6.4. Pertamina Pipe Explosion Cases by KCIC.
Time/Location Case Reason Follow Up
Time: Pertamina pipeline Not due to PT KCIC
Tuesday, explosion at the lack of apologizes to PT
October, 22 Jakarta-Bandung preliminary Pertamina and
2019 Fast Train project project the public for the
site. studies. incident.
Location:
A Jakarta-Bandung Language
Cipularang
fast train project barriers make
Toll Road,
worker, Li project
Cimahi area,
Xuanfeng, was workers
West Java
killed. misunderstan
d the stages of
work.
Drilling at that
point should
not be done
because there
will be a
39
pipeline
diversion.
Source: (Anwar, 2019)
Malaysia and Indonesia are the main
suppliers of liquefied natural gas (LNG) to China,
which together supply about 80 per cent. Although
Russia supplied 1.2 per cent of all LNG imports to
China in 2015, the rise was 25 per cent from 2014.
The cycle of foreign investment would certainly
have an impact on the financial and economic
sectors. Sadly, unlike modern ecological
modernisation, China still lacks transparency in the
handling and monitoring of environmental data,
which is very limited by civil society. Furthermore,
the modernization of China's domestic ecology has
been disconnected from China's regional and global
"go-out" policy, including the Silk Road Economic
Belt, by overlooking important elements of this
phase.
Nevertheless, China's green shift can be
accomplished in part by exports of polluting
industries and the destruction of natural resources
in countries that are in a lower position and
therefore more vulnerable than the global
production chain. Therefore, environmental
damage and emissions can only be exported rather
than seriously reduced-criticism that can
40
theoretically be extended to any "climate change"
region.
Among the other risks posed by the Silk Road
Economic Pathway, there is a lack of meaningful
social protection to protect the local population
from the adverse effects of the major projects
proposed;' Racing to the bottom' in terms of local
and national environmental standards (under the
banner of eliminating needless' bureaucracy' or
creating an' attractive investment climate'); poor
communication between integration policy
planners and various stakeholders of members of
the Silk Path Economic Line; and the general lack of
public consultation for large investment projects
(Tracy, E., et al., 2017: 80).
6.5.Human Rights Issues
One of China's international human rights
issues was the persecution of Muslim minorities in
East Turkestan (officially referred to by the Chinese
government as the Xinjiang Uyghur Autonomous
Region), an ethnic minority region in northwest
China. Indonesian Vice President Jusuf Kalla said
that Indonesia did not agree to the violation of
human rights. Nevertheless, in his opinion, the
question of the persecution of Uighur Muslims is
China's internal problem, so that Indonesia does
41
not want to intervene in the domestic affairs of a
nation.
The reaction of Indonesia and several Muslim
countries such as Malaysia, Pakistan and Saudi
Arabia, which were "cold" towards the Uyghur
community, contrasted with their frontal approach
to the humanitarian disaster in Palestine and
Rohingya, Myanmar. Of course, economic and
political considerations in their relations with
China are one cause for caution (ABC Australia,
2018; Walden, 2019).
Since 2014, the Chinese government has
initiated an "Eradication of the Ideological Virus"
program by setting up camps for political
indoctrination, collective punishment, and
stringent and systematic limits on religious
movements and contact to 13 million Turkish
Muslims in Xinjiang. Since the end of 2016,
repression has increased dramatically. The UN
urges the Beijing Government to put an immediate
end to the detention and to provide information on
the number of prisoners and the reasons for their
arrest. Interestingly, this happened when the
Chinese government actively adopted a governance
and trade model through the Global Belt and Road
Initiative (Human Rights Watch, 2018: 118;
Florentin, 2018).
42
In denying the allegations, the Chinese side
sent a delegation of 66 people to the UN Human
Rights Council. Others argue that the establishment
of a' education and training center' in Xinjiang is a'
preventive measure to combat terrorism.' Many
scholars, such as Gao (2018), suggest that the
redefinition of' detention' to' training and
education' is nothing but a replication of the
Chinese language Zhi Lu Wei ma of the Qin
Dynasty (221–206 BC) in the millennial period. This
terminology defines someone who deliberately
misinterprets the truth and distorts the evidence for
an ulterior motive. The Chinese media support the
government's stance and label international
criticism a "American" attack that is false. In order
to strengthen the help of some non-Western
countries, the Chinese party conducted its first
official visit in December 2018 to examine the
conditions in Xinjiang, Russian ambassadors, 11
Asian countries and a Muslim majority (GCRP,
2019: 4).
After 1 January 2019, Indonesia's position as a
non-permanent member of the UN Security
Council can be more crucial. Sadly, Indonesia's
position–based on ANP-INSIGHT data–at the level
of diplomacy from a global perspective with a
political vitality of 0.33 is very inferior as an
43
internal player compared to China, with China's
vitality policy hitting 0.89 and holding the position
of a global player. However, Indonesia's economic
reliance on China in many of China's infrastructure
development projects is an obstacle to direct
cooperation with China on the Uighur dispute.
Bilateral barriers have been resolved by a
multilateral approach where Indonesia is inspired
by the UN, ASEAN and OIC forums on the Uyghur
Muslim minority problem. This move forward can
at least make China's human rights diplomacy
policy adaptable to international norms (Gozali,
2019; Zhu, 2011: 217).
Law No. 37, 1999 governs foreign relations
and policy in Indonesia. It is claimed that: (a)
foreign policy adheres to the free and active
concept of national interest; and (b) foreign policy
applied by diplomacy that is innovative,
constructive and anticipatory, not just routine and
reactive, strong in values and convictions, but also
reasonable and versatile in approach. The
Indonesian attitude, which treats the Uyghur
question as a Chinese domestic problem and is
careful not to be deeply involved, is a reflection of
an "unreactive" and "fair and versatile approach."
As regards human rights issues at home, it was
governed in Law No 26 of the Year 2000 on Human
44
Rights Courts and Law No 39 of 1999 on Human
Rights.
6.6.International Concerns
There is a non-linear relationship between
economic interests and state sovereignty in
relations between Indonesia and China. The
increase of Chinese investment in Indonesia in a
variety of infrastructure financing activities does
not impact Indonesia's resolve to retain Natuna
Island, which is the border of Indonesia in the
waters of the South China Sea. In the area of
sovereignty, relations between the two countries
are based on the principle of strategic importance.
Economic cooperation between the two countries is
based on the principle of constructive cooperation
in efforts to improve trade and investment ties.
Several ASEAN countries varied in their view of
the South China Sea dispute with China. The
Philippines and Vietnam continue to claim the
territories in dispute. Malaysia and Brunei did not
act and their disputed territories did not conflict
with China. Laos and Myanmar are supporting
China. Singapore and Thailand continue to increase
their profits and losses (Andika, M.T. and Aisyah,
A.N., 2017: 161; Hartati, A. Y., 2016: 19).
45
The Government of Indonesia is committed to
maintaining the integrity of its maritime territories.
Within four years (2014-2018), Indonesia prohibited
10,000 foreign vessels from mainland China,
Taiwan, Thailand and the Philippines from
catching fish in its waters, half of which captured
more than 500 gross tons (GT) of fish. Thousands of
ships have been captured, sunk and, in some cases,
blown up. The Indonesian side believes that fishing
activities in Indonesian territorial waters, in
particular China, are illegal and include organized
transnational crime. The Chinese side has denied
the charge. However, in fact, based on an analysis
by the Food and Agriculture Organization of the
United Nations (FAO), there has been a dramatic
reduction in fish stocks in their waters, which has
driven fishing in waters far beyond its exclusive
economic zone. The decline in fish stocks is due to
the increasing demand for high-quality fresh
seafood from middle-class consumers (Rosi, d.G.,
2018).
46
488
Vietnam 276
90
Thailand 50
41
Indonesia 26
2
China 1
1
Tanpa negara 1
0 100 200 300 400 500 600
Ship
47
economic aspects and security aspects. In terms of
security, the battle against theft of fish is a
component of defense policy, as well as efforts to
safeguard Indonesia's territorial sovereignty. Many
Jokowi governments are concentrating on economic
development, including the concept of a' sea
highway' that seeks to connect goods and services
across Indonesia. Nevertheless, the great dream of
becoming the world's maritime axis has been met
with challenges. These include inadequate national
marine management due to a number of internal
barriers that need to be tackled, such as: 1)
conflicting roles of marine resource management
agencies; and 2) lack of operational support
facilities and various criminal activities in the
marine area (Syahrin, M.N.A., 2018: 1; Latifah dan
Larasati, D., 2017: 99).
48
7. LEGAL EQUALITY IN INVESTMENT
COOPERATION, A CONCLUSION
7.1.Research Findings
The findings of the review of the advance study
found that there were several conditions in the
bilateral relations between Indonesia and China:
a. Economic Considerations More Influential
Than Political Orientations
The selection of Chinese companies in the
Jakarta-Bandung Fast Train Project Purely
Economic considerations. Despite evidence of
political pressure, legal equality remains within the
boundaries of justice in the bilateral relations
between Indonesia and China. While policy
implementation is focused more on realistic
economic interests and policy strategies. The
49
selection of Chinese companies in the Jakarta-
Bandung rail project bidding process was purely
business considerations. Nevertheless, the
government and all elements of society still need to
be careful with rational estimates related to several
synergistic infrastructure projects that are secure
for the supremacy of state law.
b. Government Still Ignores Labor Problems
The government appears to be passive in
responding to the increase in the number of foreign
workers, especially China, which is not followed by
the absorption of local workers. The growth in
foreign workers is very large from year to year.
This is contrasted with the amount of active
unemployment, which is also rising every year. If a
balanced policy does not respond, it fears that this
exclusion is seen as an arbitrary power that is less
pro-justice andless pro-Prosperity. This reality can
cause a social conflict, particularly against the
Chinese ethnic group in Indonesia. Mandate Labor
law on the transfer of technology from foreign
workers to local workers has not yet been enforced.
c. Environmental Pollution Still Suggested
Many ethnic Chinese businesses have still
indicated that they would pollute the environment.
Some companies established by the Chinese in
50
Indonesia have shown that they have committed
environmental violations, in particular the
discharge of waste into rivers. Unfortunately, local
government bureaucracies are still weak so that
they can issue permits for the establishment of
foreign companies that have not yet completed
their environmental impact assessment. The
contamination of the Citarum River is one of the
situations in which similar problems tend to occur.
Sustainable synergy of all elements is required to
achieve environmental sustainability as mandated
by environmental law.
Strangely, when people were surprised how
"could have occurred" a pipe explosion near the
Cimahi toll road in the Indonesia-China Rapid
Train class project. The project leader "just"
responded with an apology to Pertamina and the
community for this incident and clarified that it
was not linked to an inexperienced feasibility study.
d. Ambiguous Policy in Responding to
Foreign Country Human Rights Cases
The Government is still cautious to deal with
human rights issues in Uyghur. Indonesia should
take a firm stance on the Palestinian issue or on the
humanitarian crisis in Rohingya, Myanmar. But not
during the mass arrests of Muslim minorities in
51
Uyghur. While reports of empirical evidence from
international institutions continue to surface, the
initiative stated to be "re-education" and vocational
training by the Chinese government as an effort to
eradicate extremism that threatens national stability
has not been able to touch the attention of the
Indonesian government. With political and
economic considerations, Indonesia is still cautious
and continues to remain silent on the grounds that
it considers the issue to be solely Chinese domestic.
This versatile approach is definitely not at odds
with the breath of the Law on Foreign Relations
and Foreign Policy and the Law on Human Rights
in Indonesia.
e. Government Decisiveness in Violation of
the State Territory
Under the leadership of the Indonesian
Minister of Maritime Affairs and Fisheries (2014-
2019), Susi Pudjiastuti, the government has taken a
strong stance against illegal fishing abuses by
international vessels and has been neutral in the
South China Sea conflict. While Indonesia urgently
needs Chinese investment in infrastructure growth,
this does not reduce Indonesia's efforts to preserve
its sovereignty. Through means of the Fisheries and
Maritime Law, the Indonesian Government is
distancing itself from the conflict over Natuna
52
Island in the South China Sea and threatening to
sink foreign ships that entered Indonesian waters
even though they were ships from China.
7.2.Conclusion
Finally, a number of things can be concluded
by means of some qualitative analysis that we have
done. Between them,
a. Economic and political considerations
frequently take precedence over the application
of the rule of law.
b. The lack of a rational strategy between national
and global interests can be an indicator of
arbitrary power.
c. Regulation of environmental pollution has not
yet been fully complied with by foreign
companies in Indonesia.
d. The issue of human rights is still seen as a
domestic issue.
e. The firmness and independence of the
perpetrators of illegal fishing in the South
China Sea dispute has not been optimal in
maintaining the country's rule of law.
53
Some of the points mentioned above indicate
that the optimization of the sovereignty of state law
in the bilateral relations between Indonesia and
China through a shared vision of the World
Maritime Axis and the Silk Road is still weak. Of
course, according to the authors, the Indonesian
government needs to improve its role by enhancing
a number of aspects, such as: (a) strengthening
aspects of community prosperity and social justice
that outweigh economic and political
considerations; (b) balancing the national-global
policy pendulum; (c) improving legal compliance
through assertiveness of regulation.
54
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67
INDEX
B E
Belt and Road Initiative, 5, 42, economic development, 13, 15,
55 16, 17, 48
bilateral agreements, 1, 2, 26 economic liberalism, 17
bilateral relations, 2, 12, 19, 26, environmental issues, 2, 13,
49, 54 26, 37
Eradication of the Ideological
C Virus, 42
68
G Jokowi, 1, 7, 8, 48, 59, 62, 65
Jusuf Kalla, 41
green shift, 40
K
H
KCIC, 12, 39
Han dynasty, 4 Kereta Cepat Indonesia Cina,
human rights, 2, 3, 13, 14, 17, 12
26, 41, 44, 51, 53
L
I
Labor, 32, 35, 50, 59
imports, 40 legal equality, 2, 26, 31, 49
INDEPENDENCE, 26
Indonesia, 2, 7, 8, 10, 11, 12, 21,
M
26, 27, 28, 29, 31, 32, 35, 36,
37, 38, 40, 41, 42, 43, 44, 45, Malaysia, 21, 40, 42, 45, 63
46, 47, 48, 49, 50, 51, 52, 53, Maritime, 1, 2, 4, 5, 7, 8, 10, 26,
54, 55, 56, 57, 58, 59, 60, 61, 28, 29, 47, 52, 54, 57, 61, 62,
62, 64, 65, 66, 67 65, 66
Indonesian National Search Maritime Axis, 1, 2, 7, 8, 10, 26,
and Rescue Agency, 28 47, 54, 61, 62, 65
investment, 1, 3, 11, 13, 14, 15, Middle East, 5, 64
16, 17, 18, 19, 20, 21, 26, 29, Multilateral cooperation, 20
31, 32, 40, 41, 45, 52, 65 Muslims, 41, 42, 58, 60
J N
Jalesveva Jayamahe, 8 Natuna, 38, 45, 52
Japan, 5, 11, 12, 30, 65 NGOs, 14, 22
Japan International
Corporation Agency, 12, 30 O
JICA, 12, 30
Joko Widodo, 27, 55, 62 Old Order, 1
69
One Belt & One Road, 4, 5, 56 Sovereignty, 13, 23, 24, 29, 56,
63
P state sovereignty, 3, 12, 13, 24,
45
Pakistan, 42
Palestine, 42 T
Political economy, 23
political science, 23 territorial, 7, 24, 46, 47, 48
pollution, 13, 20, 50, 53 Thailand, 21, 45, 46, 63
The Doha Declaration, 16
R
U
religious movements, 42
Remote Sensing Agreement, unemployment, 35, 36, 50
28 Uyghur, 41, 42, 44, 51, 55
Rohingya, 42, 51
rule of law, 1, 2, 12, 13, 53 V
Russia, 40
vessels, 38, 46, 47, 52
Vietnam, 21, 38, 45, 63
S
Saudi Arabia, 42 W
Silk Road, 1, 2, 4, 5, 10, 11, 26,
WTO, 16
40, 41, 54, 56, 57, 61
Singapore, 11, 21, 45, 63
Soekarno, 1
X
South China Sea, 38, 45, 52, 53, Xi Jinping, 5, 27, 55
59, 61 Xinjiang, 6, 41, 42, 43, 60
South East Asia, 5, 6, 11
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ABOUT THE AUTHORS
Hasan Mustapa
Participants in the Chinese Cultural and Language
program at Nanjing Normal University, China
(2016-2017). Worked at the Regional Secretariat of
the Garut Regency Government (2005-2019).
Starting in September, he became a lecturer at the
Faculty of Social and Political Sciences, Sunan
Gunung Djati State Islamic University, Bandung.
The author can be contacted via e-mail via:
hmustafa396@gmail.com or kangmoez@uinsgd.ac.id
Faruq Ansori
Nanjing Normal University School of Law
International Law PhD Program student.
Melda Juwita
Ph.D. Program in Geography Economics
Department, Human Geography Department at
Nanjing Normal University School of Geography.
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