Indonesia not to be ignored
Japan is perhaps the most optimistic country in East Asia and regards ASEAN as the "next China." Indonesia is a country that holds the key to ASEAN (the ASEAN headquarters is located in Jakarta, the capital of Indonesia), and is considered a top priority by Japan. Japan's layout covers all aspects. In addition to Japan's traditional strengths such as automobiles, motorcycles and electronic products, it also leads the overall situation in infrastructure construction, real estate development, and industrial park construction. The author has a Japanese friend who invested in Tokopedia, known as "Alibaba Indonesia" 11 years ago. At that time, the company was located in a small room on the outskirts of Jakarta with only 15 employees. Now it has 1,500 employees and is located in Jakarta. The central CBD has a 47-story office building-Tokopedia Tower, valued at US$2 billion. This is all reminiscent of the early investment in Alibaba and Jack Ma by Japan's SoftBank Sun Zhengyi.
Japan's investment is not limited to hardware. Japan has also carried out many aid projects to Indonesia through overseas aid agencies such as the Japan Bank for International Cooperation (Japan Bank for International Cooperation) and Japan International Cooperation Agency (Japan International Cooperation Agency). In terms of academics, Japan’s Ministry of Economy, Trade and Industry has also spent huge sums of money to establish an international institution "Economic Research of ASEAN and East Asia" in Indonesia to fund economic research in Southeast Asia and provide assistance to ASEAN countries and the Japanese government. While offering suggestions and suggestions, a local think tank network that knows the day has been established. In addition, branches of the Southeast Asia East Asia Economic Research Institute and the Japan ASEAN Integration Fund will be set up in the headquarters building of the Indonesia-ASEAN Secretariat.
No wonder, friends who have been to Jakarta think this is the Backyard of Japan. Nearly 95% of the cars running on the street (except trucks) are Japanese cars, and nearly 90% of motorcycles are also monopolized by Japanese brands Honda and Yamaha (and higher-end Kawasaki), and even the most famous bookstores are Japanese. Kinokuniya Bookstore". Many of the high-end shopping mall products are also Japanese brands, and the restaurants are also Japanese sushi, ramen, dumplings and beef rice bowls.
China needs to pay more attention to Indonesia, an emerging market to be developed. Although Indonesia does have risks such as volatile policies, poor infrastructure, and inadequate laws, these risks are widespread in most developing countries and emerging economies. Chinese companies want to go global and create a world. They are not just sweeping acquisitions of developed European and American companies like "tyrants", and striving to reach the sky one step at a time. They should also be down-to-earth, step by step, and work hard on the untapped emerging economies. Huawei and Vivo are the best examples of Chinese companies going abroad. The mobile phones and advertisements of these two Chinese brands can be seen everywhere in Indonesia.
Economic aggregate: scale is advantage
Indonesia is the largest economy in Southeast Asia. Its GDP has exceeded US$1 trillion (IMF forecast), which is 2.3 times that of Thailand, the second largest economy in ASEAN. Its economic aggregate is already ranked 16th in the world (if price differences are excluded, Indonesia has already It is the eighth largest economy in the world) and joined the Group of Twenty (G20) that leads the world. PricewaterhouseCoopers (PWC) and The Economist Intelligence Unit predict that Indonesia may become the fourth largest economy after China, India and the United States in 2050. The author has reservations about this prediction, but in 2016 Indonesia's per capita GDP has reached 3,570 US dollars, slightly higher than the average level of China at the Beijing 2008 Olympic Games eight years ago (per capita GDP was 3,471 US dollars). The capital Jakarta (2010 census: 9.6 million) with a population of 10 million has a GDP per capita of more than US$15,000, surpassing Xiamen, Chengdu, Chongqing and other cities, and reaching the average level of China's economic leader Jiangsu Province.
Demographic advantage: the market is king
Today's economic globalization has made the market king. A simple analysis of international capital flows and the development trend of emerging industries shows that the importance of capital and technology has become less important than before. As long as there is an idea, it can be obtained through venture capital and strategic investors. The increasingly irreversible aging of developed economies and middle-income countries such as China highlights the demographic dividend advantages of developing countries, including India and Indonesia. Other conditions remain unchanged. As long as the population grows, the market will inevitably expand, and the economy will grow naturally. Indonesia has a population of 260 million (fourth in the world) with a balanced gender ratio. More than half of the population is under 30 years old, and it continues to increase at an average annual rate of 0.89% (estimated in 2016). Consulting firm McKinsey & Company believes that 90 million Indonesians will join the middle class or become consumer groups by 2030, which is the world's largest new consumer market outside of China and India. We have all seen the demographic dividend advantage of China's economic miracle. Indonesia may indeed become the next China (of course, it is far from China in scale).
Strategic location: Energy + "One Belt One Road"
Indonesia, with 17,506 islands, has a prominent strategic position. It is the interface between the Pacific and the Indian Ocean. It is also the only way for China to import energy and trade with Europe, Africa and the Middle East. It is also the "21st Century Maritime Silk Road" that opens up the space for dream building in the new era. "Road" key bayonet. From an economic perspective, the economies of the two countries are highly complementary. Indonesia has mineral resources such as oil, natural gas, copper, and aluminum that China needs, and China has the capital, technology and development experience that Indonesia needs. From a political perspective, Indonesia is a founding member of ASEAN, China’s third largest trading partner, and has a great influence in ASEAN’s daily operations. Especially in the process of East Asian economic integration through the "ASEAN+1" model-the Regional Comprehensive Economic Partnership (Regional Comprehensive Economic Partnership) and the process of handling disputes in the South China Sea, both ASEAN and Indonesia play a pivotal role . Moreover, Indonesia is an outpost of Xi Jinping’s “One Belt, One Road” concept. Like Pakistan, its success here directly affects China’s future global layout.