Bloomberg New Economy: Indonesia Shows How to Handle the US-China Standoff


Indonesia, the largest economy in Southeast Asia and the world’s fourth most populous nation, hasn’t always had a close relationship with China. In the 1960s, Jakarta accused Beijing of supporting an alleged Communist coup attempt, and diplomatic ties were only re-established in 1990.

When China’s then-Premier Li Peng sought to reset the relationship, he said it was time to let “bygones be bygones.” Fast forward to last September. The current premier, Li Qiang, was celebrating the latest milestone in a tightening economic partnership—by taking a joyride on Indonesia’s new China-built high-speed railway.



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