Riezqa Fitri Wandansari

M2017065

Comparative Politic

(Master Degree)

Final Paper

Cooperation on 21st Century Maritime Development Program: Maritime Silk’s Road

and Global Maritime Fulcrum

Historically, sea is an important location that serves as a means of mobilization for

conflict and peace activities, including both war and trade activities. With the development of

geopolitics in the 21st century, the People's Republic of China and the Republic of Indonesia

announced two ambitious projects highlighting the importance of sea as trade routes on 2013.

China is one of the most traditionally active countries in utilizing marine and

maritime forces (Chaturvedy,2014: 3). The Chinese Maritime Silk Route (MSR) project is

developed from China's silk road, a trade path and explore route that has been done by Zheng

He in Ming dynasty in 15th century. Idea of Silk Road was reiterated by Wang Jisi, a

professor from Beijing university, 2012. He expressed the need to develop three Silk-Roads:

to Southeast Asia, to Asia South, and to Central Asia (Hartono, 2016: 2).

Whereas, Indonesia as the largest archipelago country in the world also tried to restore

its maritime slogan Jalesveva Jayamahe (at sea we are victorious) and its past maritime glory

through Global Maritime Fulcrum (GMF) (Pradhan, 2016: 4). This project is trying to restore

their maritime glory in the past while developing economic growth in their country. The

position of being a Global Maritime Fulcrum also will open the opportunity for Indonesia to
establish regional and international cooperation in order to achieve people's welfare (Witular,

2015).

With the rising of China power, China will not only open their door to foreign

investment but also will become foreign investment actor in various regions, while trying to

strengthen its relation with the other country. Meanwhile Indonesia needs a lot of funds to

realize the Global Maritime Fulcrum program. On the prospect, MSR plans are intertwined

with the GMF launched by Indonesia since the reign of Jokowi, where the development plans

of each idea tend to be integral and complementary. In other words, both MSR and the GMR

are not contradictory, but can work together, especially in terms of the provision of funds for

infrastructure development.

But these two programs are not running without risk of conflict or the risk of collapse,

as there are several MSR location points adjacent to the Indonesian territory, located in the

Malacca Strait and Natuna Islands. Indonesia needs to respond appropriately to this strategy,

especially at those two locations, where the interests of Indonesia may well be in touch with

Chinese interests. This paper will focus on what the objectives of the two programs are, what

are the challenges and opportunities of cooperation between China and Indonesia in the

future

The Visions of Maritime Silk Road program and the Global Maritime Fulcrum.

The first Silk Road Economic Belt and Maritime Silk Road concept was introduced

by Chinese President Xi Jinping on his visit to Kazakhstan and Indonesia in 2013 (The Fung

Business Intelligence Centre,2015: 2). Not only that, Chinese Prime Minister Li Keqiang also

conveyed similar things to the 16th ASEAN-China Summit in Brunei (Chaturvedy, 2014: 6).

Since then, the central government has elaborated many ideas in the formation of the two big
plans, often referred to as the "One Belt One Road" Initiative, or more abbreviated as "Belt

and Road"(The Fung Business Intelligence Centre,2015, p. 2).

The introduction of this concept was then continued by the Chinese government, such

as through the visits of the Chinese government to the five Southeast Asian countries by

President Xi Jinping and Prime Minister Li Keqiang. For example during a visit to Hanoi,

China and Vietnam announced to formally form a bilateral framework related to maritime

exploration and consultation, as a follow up of the joint development of the two countries on

the Tonkin Peninsula (Christoffersen, 2015, pp. 1-2).

An official document entitled "Vision and Actions on Jointly Building Silk Road

Economic Belt and 21st Century Maritime Silk Road" issued by the China government

contains the basic objectives of the initiative, that is; First, promoting the regularity and free

flow of economic factors, encouraging the allocation of resources with a high degree of

efficiency, deep integration of market forces; Second, encouraging relevant countries to

generate coordination of economic policies, as well as broadening and deepening regional

cooperation with higher standards; Third, collectively create an open, inclusive and equitable

regional economic cooperation architecture that benefits all parties (The Fung Business

Intelligence Centre,2015: 2).

One of the objectives of MSR program is to overcome the problems of “over

capacity” that occur in China domestic industry. Industries in China that have been set to

mass production have an impact on 'over-capacity', particularly in the infrastructure-related

sector so that their products can not be fully absorbed by the global market (Pradhan, 2016:

6). China government already tries to changes the economic policy to be more domestic

oriented. But this policy has not been able to achieve the results achieved by the export

market. Therefore MSR project is expected to strengthen Europe position as China primary

market (Hartono, 2016: 6).

 The other objective of MSR program is to strengthen China relation with its

neighbors. Since Xi Jinping came to power, there has been a change of foreign political

orientation in China. Xi Jinping put forward the new foreign policy strategy that of fenfa

youwei ( 奋 发 有 为 , striving for achievement) against the long held strategy of

taoguangyanghui (韬光养晦, keeping a low profile) (Pradhan, 2016: 5). The importance of

this MSR project to build relationships between China and its neighbors is also mentioned by

President Xi Jinping at the CPC national congress in 2012. He emphasized the importance of

China’s neighborhood policy especially the importance of good diplomatic relations with its

neighbors for the realization of the ‘centenary goals’ (Xinhua, 2013).

Gao Lan a Deputy Dean of Institute of International and Public Affairs at Tongji

University China, in his writing conveyed agreement towards Xi foreign policy and it’s

significance of MSR if it can be realized well. First, MSR is a peaceful way of connecting

China with neighboring countries. Secondly, MSR can be a new channel that helps China in

delivering its maritime culture to neighboring countries and encouraging the development of

soft power. Thirdly, MSR can be a driving force for maritime economic development, and

fourth, MSR can be a buffer in enhancing regional maritime security (Lan, 2014: 12)

The same response was also expressed by Yan Xuetong a Chinese scholar. He thinks

that China has a reason to enforce a good neighbor policy. First, it is important for China to

increase its strength in the region as a basis for China to become a global powerhouse.

Secondly, with good neighbor policy, China will get much support from its neighbors as the

US effort to stem China's power. Third, with good relationships between China and its

neighbors will be able to convince them that China's rising power should not be feared and

increase trust among (Pradhan, 2016: 6). So if we look more closely at the amount of

investment provided by China in the MSR program, the program is more inclined to

strengthen China's relationship with its neighbors.

 While the doctrine of Indonesia as the "Axis of World Maritime" introduced by

President Joko Widodo in the East Asia Summit in November, 2014. This program aims to

restore a national identity that is oriented towards the realization of a strong, united,

prosperous, and authoritative maritime force (Channel, 2016). In his speech, President Joko

Widodo stated that in the 21st century, the great transition from West to east is happening,

both economically and politically followed by the rise of Asian countries. Therefore, as a

maritime country, Indonesia must affirm itself as the World Maritime Axis. The position will

open the opportunity for Indonesia to establish regional and international cooperation in order

to achieve people's welfare (Witular, 2015).

Furthermore, Joko Widodo also expressed his intention related to the development of

maritime infrastructure and connectivity. Plans such as the construction of a sea toll along the

coast of Java Island, establishing deep-sea ports and logistics networks, as well as developing

the maritime shipping and maritime industry. Overall, 24 deep-sea ports and other ports are

planned to be built in the next five years (or during Jokowi's tenure).

The concept of the 'Global Maritime Fulcrum' doctrine proposed by President Joko

Widodo is divided into five pillars First, the redevelopment of maritime culture in Indonesia.

Second, Indonesia will maintain and manage its marine resources with a focus on creating

sovereignty over food products from the sea. Third, prioritize the infrastructure and

development of maritime connectivity, as well as the development of shipping, logistics, and

maritime tourism industries. Fourth, maritime diplomacy to resolve conflicts at sea, such as

fish theft, sovereignty offenses, territorial disputes, and piracy. Fifth, build sea defense forces

in order to preserve and defend the sovereignty, as well as ensuring the security of peaceful

shipping in the sea area of Indonesia (Djumala, 2015).

One of GMF project called Toll Sea aims to connect the major ports of the

archipelago in the hope of developing a maritime economy. Making the sea as a basis for
production and marketing connectivity between regions / islands in Indonesia and regionally.

In Indonesia, due to demographic circumstances separated by islands make the unevenness of

development and prosperity. Distances between islands make the prices of goods to be

expensive and uneven.With the relationship between these sea ports, it can be created smooth

distribution of goods to the corners. The realization of the 'toll sea' is expected to lower

logistics costs. Thus, he continued, the price stability of goods and commodities between

regions was maintained.

Based on its development objectives, the World Maritime Fulcrum includes many

national interests in various aspects, such as politics, socio-culture, defense, infrastructure,

and especially the economy. Especially on the economic aspect, with Indonesia GMF project,

the potentials such as connectivity and trade efficiency will be more easily achieved.

By looking at the pillars and GMF policy it can be concluded that GMF is more

about domestic development than about foreign policy. President Jokowi, who lacks

diplomatic experience and foreign policy, views himself more as a domestic reformer than an

international statesman and who will use foreign policy to promote domestic development.

The first three pillars are clearly related to the domestic environment that instills maritime

culture, preserves marine resources and develops maritime infrastructure and only the latter

two have a foreign dimension for them (Pradhan, 2016: 6).

Joko Widodo also expressed his wish that GMF could become a maritime security

guard in the ASEAN region. So far, problems in ASEAN maritime areas are still dominated

by terrorism, piracy and refugees. he also said his interest to participate in determining the

future of the Pacific Sea and Indian Ocean region. He wants the future of the two oceans to

remain safe and secure for trade routes and not be used as a platform for the seizure of natural

resources, territorial disputes or maritime supremacy (Witular, 2014) Agus Suhartono

stressed that there is a need to balance between maintaining Indonesia's maritime sovereignty
and holding an international life responsible for viewing GMF. The balance will be related to

transit rights, peaceful passage rights, and archipelagic sea lanes passage rights. To do so, the

fulfillment of juridical aspect, instrument to implement it, and legal institution in case of case.

The realization of GMF requires real hard work (Hartono, 2015).

Through the GMF program the Government of Indonesia seeks to enhance maritime

cooperation in order to carry out maritime diplomacy. With the maritime diplomacy the

government can safeguard the sovereignty of the state by several steps including: First,

accelerating negotiations to resolve border issues with neighboring countries; Second,

improving the security of the outer islands and Third, securing marine resources within the

territorial waters of an Exclusive Economic Zone (ZEE) (Darmastuti and Subekti, 2015: 20).

By looking at the visions of these two maritime programs, we can conclude that the

MSR program made by President Xi Jinping has a goal to encourage China's economic

integration with peripheral countries (especially neighboring countries) that are seen most

anxious about the increase of Chinese economic and military power. While Indonesia's GMF

program is aimed at building domestic development and improving economic welfare in the

country.

Therefore, what needs further review is whether China or Indonesia can harmonize its

ideas and interests in order to be in line with each other and in line with the interests of other

countries involved in the region.

The Vulnerability of Cooperation between China and Indonesia.

After we see the goals of both maritime programs above, we could conclude that the

two maritime projects appear to be complementary to each other. Next, we will look at the

issues faced by both programs and whether these issues will affect maritime cooperation

between China and Indonesia. The first is the issue of illegal fishing and the second is the
growing conflict in the South China Sea. These two issues are related to each other in several

ways.

Since, President Jokowi came to power he has had a tough stance towards illegal

fishing. Indonesia being archipelago fishing constitutes a major sector of its economy. The

emergence of doctrine “Global Maritime Fulcrum” is no other back dropped by various

problems in the field of marine in Indonesia. For example, according to the State Audit

Agency (2013), estimates the potential revenue of the marine fisheries sector in Indonesia if

without illegal fishing can reach Rp. 365 trillion per year (approximately US$25 billion per

year). But due to illegal fishing, the country suffered huge losses. Therefore, we can imagine

hundreds of trillions of Indonesian foreign exchange lost every year. To solve this problem,

the Minister of Marine Affairs and Fisheries Susi Pudjiastuti, in her first year in charge of

ordering the sinking of 106 illegal fishing boats in Indonesian waters (Maksum, 2014: ).

Most of the illegal foreign fishermen boats are from the neighbouring Southeast Asian

countries. But there are several Chinese linked vessels that being seized and sunken (Pradhan,

2016: 10). The first incident, on March 19, in which the process of catching a Chinese fishing

boat suspected of illegal fishing, was 'hindered' by Chinese coast guard vessels, by crashing

into the fishing vessel "to be damaged so that it cannot be withdrawn."

Furthermore, eight crew and a Chinese ship, were captured by the navy on Friday,

May 27, 2016, for the same reason that illegal fishing. The Chinese Foreign Ministry later

issued a protest against this arrest. The third, on June 17, 2016, the Navy secured a Chinese-

flagged vessel and seven of its crew because it was said to steal fish in Natuna waters. The

same protests issued by the Chinese Foreign Ministry, this time followed by the claim that the

Navy has injured one of the crew, the claim has subsequently been denied by the Indonesian

navy. Chinese Foreign Ministry spokesman, Hua Chunying, claimed, in Natuna, his

fishermen caught fish in China's traditional fishing area and said this was the first time that a
Chinese Coastguard vessel ventured in so close to Indonesia’s 12-nautical mile territorial sea.

However, the Indonesian government denied the claim. Minister Susi Pudjiastuti affirmed not

recognizing the traditional fishing territory of any country (BBC Indonesia, 2016). Along

with this problem, Indonesia then unilaterally lifted the bilateral fishery cooperation signed in

October 2013.

In addition to the problem of illegal fishing, the problem of Chinese recognition of the

waters of the Natuna Islands in Indonesia could be a stumbling block in the cooperation

between the two countries. In 2009 China launched the Nine Dash-Line that claims almost

the entire South China Sea region, based on the fishing history of its fishermen. To enforce its

claim to nine dash lines, China has used its fishermen as a proxy and provided them with

financial and political support for their fishing activities in contested waters. China

Government advised fishermen to 'not only lead fishing activities but also collect information

about marine and support the development of islands and coral reefs' (Pradhan, 2016: 10).

China wants to expand its economic development strategy to cover marine development in

addition to onshore development.

This poses a problem because of overlapping areas of several ASEAN countries such

as; Philippines, Taiwan, Vietnam, Brunei Darussalam, and Malaysia. Indonesia, which

initially did not participate in the problems of the South China Sea is considered capable of

mediating. However, after the problem of illegal fishing and Chinese recognition that the

waters of Natuna Island as their traditional fishing lane make Indonesia have to re-think about

their position in the problem of South China Sea. In its development, there are reports of

China's claims to the waters and the Natuna islands that are currently included in the details

of China's newest territorial sovereign landscape (BBC News, 2015).

The Natuna Islands are an integral part of the territorial sovereignty of the State of

Indonesia whose territory lies within the 12 Mile of Indonesian territorial territory recognized
by the United Nations and reinforced by the 1982 International Sea Law Convention. Chinese

state claims on Natuna waters and islands are considered unfounded because of the position

of the archipelago Natuna is around more than 400 Miles from the Spratly archipelago which

has been claimed by China as its territorial territory (Muhammad, 2016)

Indonesia has done various things to signal its presence in Natuna, especially towards

China. Some of these are the provision of giant cold-storage to cool fish and marine products,

certainly intended primarily to support the fishery industry. The other is the construction of

floating docks in northern Natuna, the construction of a military complex for a company of

marinis, the construction of ammunition warehouses, the construction of a runway that can be

used by Sukhoi aircraft. On June 26, 2016 Joko Widodo held a meeting on the battleship of

Imam Bonjol to visit Morotai and Myangas islands which are the outermost islands of

Indonesia, as well as Morotai and Mensyi, the outer islands bordering the Nine Dash Line of

China. It is expected to show the desire of Indonesia to maintain its territorial.

The issues between two country poses different objective, while China Nine Dash

Line and illegal fishing occur because China want to develop their maritime based on their

‘traditional fishing area’, Indonesia try to defend their territorial and enforce their maritime

law that has been forgotten.

The Driving Factors of Cooperation between MSR and GMF

However, although there are some problems between China and Indonesia but it does

not dampen the intention of each country to continue cooperation among them. In this section

we will discuss how this cooperation can continue and benefit both countries.

Mr. Xi Jinping stressed that the main idea of Maritime Silk Road is to connect China

to Europe via Southeast Asia and Africa. Meanwhile Global Maritime Fulcrum wants to

‘connect’ their archipelago throughout Indonesia. The same ideas of “connectivity” then
become the major reason between China and Indonesia to do cooperation (Pradhan, 2016: 7).

Coupled with the good relations that have long been woven by the government of China and

Indonesia make the two countries do not hesitate to cooperate with each other. In 2012 and

China and Indonesia have had time to work together in the field of maritime security.

Cooperation includes navigation safety, maritime safety, marine scientific research and

environmental protection, as well as tracking, telemetry and control rooms. China and

Indonesia also maintain good cooperative relations and coordination in multiple fields, such

as the International Maritime Organization (IMO), the International Hydrographic

Organization (IHO) and the Malacca Strait (Budilaksono, 2014).

In order to succeed the doctrine of the World Maritime Axis, President Joko Widodo

then invited many countries to cooperate for the project and jointly deal with marine conflicts

such as violations of sea sovereignty, illegal fishing, piracy, and pollution issues. Then

related to infrastructure development, it is projected that the World Maritime Axis will

require 70 trillion rupiah (or US $ 5.6 million) to expand five major ports in north Sumatra,

Jakarta, east Java, south Sulawesi and Papua. Related to this, Indonesia is then very open to

the establishment of cooperation and channeling of funds from various countries, especially

China which also has maritime projects as contained in the MSR.

Mr. Jokowi also showing his support on China MSR program by joining Asian

Infrastructure Investment Bank. Mr. Jokowi stressed that he would gladly cooperate with

China in the field of infrastructure and manufacturing developments as long as the MSR was

not about hegemony and was more about economic and diplomatic ties. The two sides agreed

on strengthening strategy and policy communications, advance maritime infrastructure

connectivity, deepen cooperation in industrial investment and major project construction,

enhance practical cooperation in maritime economy, maritime culture and tourism, so as to

develop a maritime partnership together (Witular,2015).

 By joining AIIB Indonesia also get the advantage that the funds needed to achieve the

World Maritime Axis can be achieved from Chinese aid, share budgets among donor

countries / other investors, or wholly financed from AIIB funding. If this plan proceeds as the

above scenario - with AIIB as one of the funding sources of development - it can be said that

the doctrine of the World Maritime Shaft by Indonesia becomes an integral part of MSR

China.

In addition to cooperation in the field of maritime infrastructure, the Government of

China and Indonesia are also working together in the development of land transportation

infrastructure. Cooperation between China’s National Development and Reform Commission

(NDRC) and Indonesia’s Ministry of State-owned Enterprises to build a US$5.5 billion worth

high speed rail service linking Jakarta with Bandung by PT Kereta Cepat Indonesia-China

(KCIC).

The Chinese Ambassador to Indonesia underscored the benefits of cooperation

between China and Indonesia on MSR and GMF. He explained the benefits for Indonesia to

use MSR. Xie noted that, Indonesia can continue its GMF by utilizing infrastructure

construction, technology and infrastructure development experience, and China's mass-

oriented economic structure to build the Indonesian economy. Indonesia also can obtain

much needed financial aid from China by utilizing AIIB and Silk Road Fun. He also stated

that for China, Indonesia is an important part of MSR because Indonesia has advantages in

the areas of profit in resources, markets, labor and geography (Witular, 2015)

Conclusion.

Based on previous explanations, it appears that MSR is a Chinese development plan

that aims to expand China's access to neighboring countries, and as a follow-up to the

increase of its power both in the regi on and the international sphere. China recognizes the
historical potential of the silk path that it is trying to grow back in order to create an

economic, political, and security environment that is in line with China's national interests.

While the Global Maritime Fulcrum program made by Indonesia aims to improve the

development of infrastructure and the domestic economy is still less developed. Indonesia

which is an archipelago country should develop its maritime potential for the welfare of its

people.

The problems faced by both countries resulted from a conflict of interest. China,

which seeks to develop its fishing lanes according to their traditional paths, collides with

Indonesian interests seeking to reestablish territorial boundaries and their maritime potential.

In the case of the South China Sea, Indonesia seeks to mediate between China and ASEAN

countries as long as it does not touch upon Indonesia's territorial borders.

The problems experienced by both countries did not dampen their intention to

continue the cooperation. Good relationships that have been established for a long time and a

common vision to make cooperation between China and Indonesia can be well established.

With funds and experience owned by the Government of China, Indonesia is able to run and

develop the doctrine of Global Maritime Fulcrum. Whereas with the resources, workers, and

markets owned by Indonesia is also able to benefit the program Maritime Silk Road owned

by China.
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