Education reduces poverty, boosts economic growth, increases GDP, creates employment opportunities, and improves overall mental and physical health.
In democratic countries within the ASEAN Austral-Asia-Pacific region, it also supports growth in civil society and democracy in empowering people to learn about their rights and access the skills needed to implement in 2023 revealed a quiet but booming relationship between Taiwan and Indonesia, and 2024 looks to be similarly robust.
More educational exchanges, more technology collaboration projects, and more Indonesian migrant workers in Taiwan are planned.
In 2023, Indonesia-Taiwan relations witnessed a notable upswing. The year has been marked by increased collaboration in trade and commerce. And, as in previous years, educational exchanges have continued to play a significant role in the ties between the two, alongside the issue of migrant workers.
Along this frame of mutual exchange educational opportunities are expected to persist, promoting cultural understanding and people-to-people connections. The commitment to addressing challenges related to migrant workers may also lead to continued cooperation in ensuring the welfare and protection of Indonesian migrant workers.
Innovative collaborations, as seen in the startup sector and in technological advancements, may open up new opportunities for both nations. Increased partnerships in areas such as agriculture, tourism, and renewable energy could further contribute to a more diversified and resilient relationship.
While the future landscape of Indonesia-Taiwan relations will undoubtedly face challenges, the shared interests and collaborative initiatives each share suggests a positive trajectory characterized by sustained cooperation and mutual benefit.
Economic relations
In early 2023, as tensions rose in the Taiwan Strait, Indonesia focused on creating an emergency plan due to the presence of 350,000 Indonesian citizens in Taiwan, as well as to face the economic impact expected from Taiwan’s restricted waters and airspace.
Economically, Indonesia maintained its position as Taiwan’s 13th largest trade partner, with a trade volume exceeding US$14 billion (2022). Plans were in place to renew a bilateral investment agreement. However, starting in May, Taiwan imposed anti-dumping charges on float glass from Malaysian, Indonesian, and Thai suppliers, citing unfair pricing practices.
Despite these challenges, 2023 witnessed several investment agreements between Indonesia and Taiwan. Companies like Protechma Indonesia and Taiwan’s Aeroprobing Inc. collaborated on drone technology for agricultural use. Kampuh Welding Indonesia and Taiwan’s CSBC Corporation aimed to address Taiwan’s labor shortfall by hiring Indonesian experts for the shipbuilding industry. Agreements were also signed in the food industry, combining Taiwan’s technological capabilities with Indonesia’s local resources.
In October 2023, Taiwan invested US$900 million in Indonesia across a number of industries, including nickel mining, fisheries, carbon trading, and projects supporting the development of the Indonesian Capital City (IKN). A new area of cooperation emerged in the startup sector, with organisations from both countries organising exchange programs and startup gatherings. The potential for increased investment exists, especially as Indonesian provinces like East Java explore collaboration with Taiwan in agro-business and tourism sectors.
Migrant Workers
The issue of workers continued to feature significantly in Indonesia-Taiwan relations in 2023 and is likely to continue into 2024. According to statistics released by the Ministry of Labour, as of June 2023, there were about 259,558 Indonesian workers – around 35 per cent of the 739,496 migrant workers – in the country. This makes Taiwan the top destination for Indonesian migrant workers globally.
In August, Taiwan announced that it would bring in more Indonesian migrant workers to work in the agriculture and livestock farming sector.
To complement this, Indonesia and Taiwan agreed to simplify application procedures for Indonesian workers, including those who return to Indonesia, to apply for intermediate-skilled positions with no maximum limitation on work years. In addition, agreements were also signed to address a number of issues with the brokerage system that exposed migrant workers to multiple hidden fees
Diplomacy
Jakarta and Taipei’s relation strengthens with the sixth Indonesia-Taiwan Industrial Collaboration Forum held in October in Bogor, Indonesia- focusing on cooperation in energy transition, the food sector, shipbuilding, and digital industry.
Taiwanese institutions continued to offer scholarships for Indonesian students across 2023, with Tzu Chi University of Science and Technology announcing its Indonesia Entrepreneur Scholarship program. Hsing Wu University, alongside Cheng Siu University, also started to offer a “New Academia Industry Program Taiwan” scholarship for Indonesian vocational graduates.
Beyond education, the flow of tourists also continued, reaching 150,000 Indonesian tourists in 2023 alone. The number may increase in 2024, especially as Taiwan is working to secure a visa waiver from Indonesia.
By Muhammad Zulfikar Rakhmat and Yeta Purnama. The authors are researchers at Center of Economic and Law Studies in Jakarta.
