The journey of Indonesia-China diplomatic relations started centuries ago with the expedition of Admiral Zheng Ho to Indonesia in 1405.

Under his command, the expedition dropped anchor in Samudera Pasai harbour. Their mission was to open trade and diplomatic relations.

A growing number of Tiongkok (Chinese) traders soon arrived in the area and many eventually settled there and married Samudera Pasai women.

This initial contact created wider opportunities for co-operation over the following centuries.

Diplomatic relations between Indonesia and China was established on April 13, 1950. Diplomatic relations faced ups and downs over the next 30 years and on July 5, 1985, a Memorandum of Understanding (MOU) on two-way trade restoration between the Indonesian Chamber of Commerce and Industry (KADIN) and the China Council for the Promotion of International Trade (CCPIT) was signed.

The harmonious bilateral trade relationship was indeed a stepping stone linking Indonesia and China in a co-operation based on mutual respect and trust.

This situation then developed the momentum for the two nations to enter into a new round of diplomatic relations.

Witnessed by Indonesian President Soeharto and Chinese Prime Minister Li Peng, the Memorandum of Understanding on the normalization of Indonesia-China diplomatic relations was signed on August 8, 1990.

In light of the normalized Indonesia-China diplomatic relations, President Soeharto made his first four-day visit to China on November 14, 1990 during which an MOU on the formation of the two countries' Economic Co-operation Joint Commission was signed.

The relationship between the two countries is not only all about two-way trade but also about relations in a host of other fields - art and cultural, education, medical know-how, sports, social and other relations.

On the international stage, China's liberalized economy is becoming increasingly attractive to foreign investment, more so after China implemented policies which give many incentives to foreign investors.

Therefore, Indonesia-China co-operation is more focused on improving economic relations.

From his recent visit to China on July 27, 2005, President Susilo Bambang Yudhoyono brought back concrete results that are expected to give further impetus to Indonesia's economic recovery.

These results include bilateral agreements, business plan agreements between the two countries' businessmen as well as other investment and trade commitments from the business communities of Indonesia and China.

Today China is the third target market for Indonesian exports after Japan and the United States.

The total trade volume of the two countries was US$5 billion in 2002, and the figure nearly doubled to more than US$9 billion in 2004.

During 2000-2004, Indonesia-China trade increased at an average rate of 18.74 per cent per annum.

Indonesia's economic growth is expected to increase from 5.5 per cent in 2004 to 7.5 per cent in 2009 with an average annual growth of 6.6 per cent.

It is expected that Indonesia-China diplomatic relations will continue to improve based on mutual respect and a partnership based on trust.

(China Daily 08/30/2005 page1)