Journal of ASEAN Studies, Vol. 1, No. 2 (2013), pp. 140–163
©2013 by CBDS Bina Nusantara University and Indonesian Association for International Relations
ISSN 2338-1361 print / ISSN 2338-1353 electronic
Economic and Socio-Cultural Relations between
Indonesia and Taiwan: An Indonesian Perspective,
1990-2012
Luh Nyoman Ratih Wagiswari Kabinawa Bina Nusantara University
Abstract
This paper analyzes the puzzle why did Indonesia maintain durable economic and socio-
cultural relations with Taiwan? In order to answer that question, this paper argues that due
to the Indonesian people as promoter of ideas lead interactions with Taiwan, Indonesia is able
to maintain its durable economic and socio-cultural relations with Taiwan despite under the
absence of diplomatic relations. People-to-people interaction builds three kinds of interactions
between Indonesia and Taiwan on the issue of economic and socio-cultural: unofficial
interaction, semi-official interaction, and official interaction. This paper employs Indonesian
perspective approach that stressed on the pattern of relations that stem from people-to-people
interactions between Indonesia and Taiwan. Thus, the paper aims to fill the gap in the
literature on Taiwan and Indonesia relations that mostly focus on analysis of economic
diplomacy, interest (Leifer 2001; Ku 1995, Leong 1995, Lee 1990, Klintworth 1995, Rich
2009), shifting on international order (Ku;1998), and the PRC’s factor on Indonesia and
Taiwan relations (Ku 2002; Irawan 2006).
Keywords: Indonesian businessmen, Indonesian migrant workers, Indonesian
students, economic and socio-cultural relations, people-to-people interactions
Introduction
Indonesia and Taiwan are two entities
that do not have official diplomatic relations
but maintain durable economic and socio-
culture relations. Though Indonesia adheres
One China Policy principle, this country
continues to nurture its relations with
Taiwan in economic and socio-cultural
aspects.
The most important event in Indonesia’s
relations with Taiwan occurred in 1989
when Taipei was allowed to rename its
Chamber of Commerce in Jakarta from
Chinese Chamber of Commerce into Taipei
Economic and Trade Office which gave
politically meaningful status to Taiwan.
Indonesia-Taiwan’s harmonious relations
did not stop there; in 1994 Taiwan launched
a program called “Southward Policy” which
aims to increase its investment and political
relations with countries in Southeast Asia
including Indonesia. Economic ties between
Indonesia and Taiwan found within
investment and trade activities while socio-
cultural ties lied within the existence of
Indonesian migrant workers and
Indonesian students in Taiwan.
Statistics on economic and socio-cultural
relations between Indonesia and Taiwan
Journal of ASEAN Studies 141
showed improvement after the year of
1990s. In terms of economic investment,
Taiwan was the eighth-largest foreign direct
investor for Indonesia in 2010 (Center for
Political Studies (P2P) LIPI 2011, p.6).
In terms of trading activity, Indonesia
was Taiwan’s eleventh-trading partner in
2010, being the thirteenth-largest export
market and eleventh-largest supplier or
imports (Center for Political Studies (P2P)
LIPI 2011, p.6). On the context of socio-
cultural relations, Indonesian migrant
worker is the first biggest population of
foreign workers in Taiwan. In addition,
Indonesian student is the third largest
population of foreign students from
Southeast Asia after Malaysia and Vietnam.
The table clearly shows that each year
statistics on economic and socio-cultural
relations experience some improvements.
However, durable economic and socio-
culture relations between Indonesia and
Taiwan do not necessarily give positive
impact toward their political-diplomatic
relations. Indonesia since its independence
in 1945 never recognized Taiwan as an
independent state. Indonesia recognized the
People’s Republic of China (hereafter PRC)
as the sole legitimate representative of
Chinese government in 1950. Even after
Indonesia suspended its diplomatic
relations with PRC in 1967, Indonesia has
never recognized Taiwan.
Furthermore, Indonesia is one of the
countries in Southeast Asia that strongly
supported the principle of one-China Policy
and signed strategic partnership relations
with PRC in 2005. Thus, politically
speaking, Indonesia does not have any
incentive to improve its relations with
Taiwan. Economically speaking, however,
Indonesia and Taiwan are able to maintain
strong economic and socio-cultural
relations. Hence, this paper will explain the
underlying reason that caused Indonesia
and Taiwan are able to develop economic
and socio-cultural interactions under the
absence of diplomatic relations.
Based on state-centric approach, a state
that does not have political diplomatic
relations with another state would be
difficult to engage in formal governmental
relations among each other. Nevertheless on
the case of Indonesia and Taiwan, both
nations are able to develop their economic
and socio-culture relations even though
official diplomatic ties are missing. Thus,
this paper tries to answer the question:
“Under the adherence of one-China policy
principle and the absence of diplomatic
relations with Taiwan, why did Indonesia
Table 1. Statistics on Economic and Socio-Cultural Relations between Indonesia and
Taiwan 2010-2012
Source: compilation from ; and Bureau of Foreign Trade: Trade
Statistics, Republic of China (Taiwan), http://cus93.trade.gov.tw
Year Investment
(US$ 1000)
Export
(US$ 1000)
Import
(US$ 1000)
Indonesian
Migrant
Workers
(person)
Indonesian
Students
(person)
2010 389 4.509.630 6.020.156 156.332 2,274
2011 1.145 4.836.625 7.428.224 175.409 2,472
2012 17.200 5.190.198 7.324.792 191.127 2,723
142 Indonesia-Taiwan Relations: Indonesian Perspective
maintain durable economic and socio-
cultural relations with Taiwan?”
This paper argues that due to the
Indonesian people as promoter of ideas lead
interactions with Taiwan, Indonesia is able
to maintain its durable economic and socio-
cultural relations with Taiwan despite
under the absence of diplomatic relations.
People-to-people interaction builds three
kinds of interactions between Indonesia and
Taiwan on the issue of economic and socio-
cultural: unofficial interaction, semi-official
interaction, and official interaction.
The paper employs Indonesian
perspective approach to examine Indonesia-
Taiwan relations. In addition, this paper
will also examine case studies of economic
and socio-culture issues. Economic issues
involve aspect of investment, and trade
while socio-culture issues include aspect of
migrant workers and Indonesian students.
This paper consists of four sections. First
is the introduction. Second section covers
theoretical framework to set up the main
indicators. Third section presents the
discussion of main analysis. The last section
is conclusion.
Theoretical Framework
The main analytical tool on this paper is
people as promoters of new ideas (Snyder
2004, p.59) lead state’s interaction with
other states. The importance of people
within the study of international relation
has been acknowledged to promote state’s
relations with others. People-to-people
interaction goes beyond the boundaries and
sovereignty of the state. This part will
examine the role of the people within state
to state relations. Discussion will begin with
conceptual approach from realist into
constructivist’s core ideas to explain their
views on state to state relations. Later on,
the conceptual approach will be narrow
down into the proposed framework.
Realism approach treats state as the
main unit analysis on international relations
studies (Mingst 1996, p.70-78 and Snyder
2004, p. 59). State is the single and the main
actor within the analysis of international
relations phenomena. The idea of state is
built from de facto and de jure idea. De
facto consist of citizen, boundary and
government, while de jure relates to the
idea of sovereignty and recognition from
other states1. The idea of sovereignty and
recognition relies on the practice of
acknowledgement of diplomatic relations
among states. State practice government-to-
government contacts under the leverage of
diplomatic relations. Thus, from realist
point of view, interaction in the
international order is filled by state to state
interactions under the leverage of official
diplomatic relations.
Figure 1
Official State to State Relations
The above picture describes that state’ A
has official diplomatic relations with state B,
thus both interact each other without any
hesitation. Both states practice government-
to-government relations within various
kinds of issues. Under official diplomatic
relations, state is easier to conduct
interactions with others. Nevertheless, not
every state has official diplomatic relations
with other states. Government-to-
government relations are unlikely occurred
among state that lack of diplomatic
relations. Therefore, state’s interactions with
others are not conducted under the official
government level but through the existence
1 The idea of de facto and de jure is the basic term to define
one entity as a state. Various discussion about the nature of
the state can refer to Stephen D. Krasner, “Abiding
Sovereignty”, International Political Science Review, Jul., 2001,
Vol. 22, No.3, pp. 231-233
Journal of ASEAN Studies 143
of third parties which are people2. People
from one state interact with other state
through their movement that goes beyond
the state’s boundaries and sovereignty.
Together with the development of
globalization, people could easily move
from one state to another state.
People-to-people interactions under the
absence of diplomatic relations among two
states often called as informal relations. This
term appear because the relations among
states not conducted by the government but
by the people. The picture below shows
how interaction between states occurred
through their people’s interaction.
Figure 2
Non-Official State to State Approach
The above picture explains that state A
does not have diplomatic relations with
state B, thus both will be difficult to exercise
official governmental exchanges. However,
both countries still able to manage their
relations due to the interactions that led by
the people. People build the network and
provide information for the states, thus,
both states can manage their relations
within various issues. On this case, state
exercises its basic function as security and
economic provider for the people.
To exemplify, people from state’ A
would like to do business in state B.
Therefore, the people should move from
state A into state B to run his/her business.
In order to be able to enter state B, people
from state A has to prepare some official
2 Third parties within state-to-state relations not only on the
context of people but also on the context of other non-state
actors such Multinational corporations, International
Organizations or Non-governmental organizations. Due to
the limitation of this thesis, however, this thesis only focuses
to the role of people as third parties within Taiwan and
Indonesia relations.
documents primarily resident or working
visa. The issuance of visa is the matter of
governmental issues, thus the government
from state A has to cooperate with the
government in state B to issue visa for the
people from state’ A that would like to do
business in state B. Hence, both
governments are forced to work each other
in order to fulfill the needs of issuing visa
for the people.
From the above case, it explains two
things. First, state as a security provider has
to protect their people whose going
overseas, without consideration whether
the state has diplomatic relations or not
with the other state. Thus the state has to
work with other state in order to issue entry
permit as a legal protection for their citizen
when going overseas. Second, state as
economic provider allows people from its
state to do business overseas in order to
fulfill economic interest of the people. Those
two activities as security and economic
provider cannot be conducted, unless the
state also builds connection with designated
state that has no diplomatic relations
The above mentioned explanations
show how people from different state
interacts each other and influenced state’s
relations. However, the explanation has not
addressed the interest of the people that
would like to enter the country that do not
have official diplomatic relations with their
state. The explanation has not answered the
underlying reasons that endorse people
from state's A willing to interact or to move
with state B. Constructivist approach that
focuses on the concept of ideas and values
will be employed in order to explain the
underlying reasons of people’s migration.
As mentioned before, realist approach treats
state as the key actors on the study of
international relations.
On the opposite side, constructivist
builds their arguments based on the
analysis of individual or promoters of new
ideas (read: people) as the key actors in
144 Indonesia-Taiwan Relations: Indonesian Perspective
international relations (Snyder 2004, p.59
and Walt 1998, p.38).
Constructivist argues that interest is
formed through the process of reciprocal
interaction which constitute by the
distribution of ideas. Interest is not given by
order but rather than constructed through
reciprocal interactions. It is said that
interests being formed in the process of
interaction rather than being formed prior
to interaction (Baylis and Smith 1997, p.185).
Constructivist treats ideas and values as
their main instruments to analyze the
construction of interest (Snyder 2004, p.59).
People act under the command of its ideas
in which they will share it with others that
created a formation of ideas. “Shared ideas
making up norms, institutions, threat-
system, and so on – that constitute the
meaning of the distribution of power, either
by constituting state’s perceptions of that
distribution or by constituting their
identities and interests” (Wendt 1999,
p.104). Clear explanation about distribution
of ideas as follows (Wendt 1999, p.104).
Figure 3
Constructivist Approach on State to
State Relations
Above diagram explains the formation
of interest that closely associated with
material things such economic and/or
security interest. Those interests are actually
shape through distribution of ideas that
promote by the people. Distribution of ideas
mixed together with cultural-values making
up norms and institution which at the end
constitute identities and interests of the
state. The process of interest formation also
lurks by the culture (Wendt 1999, p.104).
Thus interest are not given and shaped
through material things, but rather from the
process of distribution ideas or non-material
elements.
In sum, analysis of ideas that shared by
the people will be employed to examine the
underlying reasons that caused people’s
migration under the absence of diplomatic
relations among their government. Ideas are
the reasons that endorse those people
interact with another countries and
societies. Wendt narrow down the concept
of ideas into “knowledge” (Wendt 1999,
p.104) that can be either private or shared
knowledge. “Private knowledge consists of
beliefs that individual actors hold that other
do not”(Wendt 1999, p.104). This private
knowledge refers to the domestic or
ideological considerations that being the
key determinant of people to frame and act
toward the surrounding environment.
Meanwhile “shared knowledge or
culture is the knowledge that becomes
common knowledge among individuals”
(Wendt 1999, p.141). Thus on this sense,
socially shared knowledge or culture also
play a role to influence actor’s interactions.
Private and shared knowledge are the
foundations that influence people to interact
with others.
Private and socially shared knowledge
will be formed into an institution.
Institution plays important role in bridging
the governmental relations and providing
network sharing and information. As
argued by Wendt (1992), “institutions are
fundamentally cognitive entities that do not
exist apart from actor’s ideas about how the
world works”. This institution embodied
Journal of ASEAN Studies 145
the distribution of ideas that socially shared
by the people. Distribution of ideas together
with the creation of institution constitutes
the interest of the state that eventually
influences the state’s behavior to nurture its
relations with the country that does not
share diplomatic relations.
Analytical Framework
Drawing from the above mentioned
theoretical explanations, Indonesia and
Taiwan relations could be explained by
looking at the people-to-people interactions
that existed among their ties. Moreover, the
concept of distribution of ideas – making up
norms and institutions – constitute interest
will also be employed to further analyzes
the underlying reason that caused
Indonesia is able to nurture its economic
and socio-cultural relations with Taiwan.
The clear explanation will be below
Above is the clear picture of Indonesia
and Taiwan relations that built from people-
to-people interaction. Both countries can
keep their contact due to the interactions
that constructed by the people. A clear note
must be made that people on the context of
Indonesia and Taiwan relations are not
limited to those above written, which this
paper will be dealt with3. Further analysis
3 The term people within Indonesia and Taiwan relations are
not limited to Indonesian businessmen, Indonesian migrant
workers and Indonesian students. There are also other
people such foreign spouse and/or Indonesian academic
community. However, due to the limitation of this thesis
will be addresses the underlying reasons
that push or pull Indonesian businessmen,
Indonesian migrant workers and
Indonesian students come to Taiwan for
their own purposes. Concept of ideas,
institution and interest are the main
analytical tools to examine the underlying
reasons.
The term ideas consist of private
knowledge and socially share knowledge.
These two knowledge narrows down into
several frameworks that caused Indonesian
people interact with Taiwan. There are three
main frameworks that help to explain the
underlying reasons of people’s migration:
environmental, economic, and cultural
frameworks. These frameworks will be used
to examine factors that endorsed Indonesian
businessmen; Indonesian migrant workers;
and Indonesian students choose Taiwan as
their destination for business, study and
work.
Above is the clear picture of Indonesia
and Taiwan relations that built from people-
to-people interaction. Both countries can
keep their contact due to the interactions
that constructed by the people. A clear note
must be made that people on the context of
Indonesia and Taiwan relations are not
limited to those above written, which this
paper will be dealt with4. Further analysis
that will analyze the economic and socio-cultural ties
between Indonesia and Taiwan, hence the tool of analysis
only consists of those former three categories of people.
4 The term people within Indonesia and Taiwan relations are
not limited to Indonesian businessmen, Indonesian migrant
Figure 4 Indonesian Diplomatic Relations with Taiwan
I. TaiwanIndonesia No Diplomatic Relations
People-to-people interactions:
1. Indonesian Businessmen
2. Indonesian Migrant Workers
3. Indonesian Students
146 Indonesia-Taiwan Relations: Indonesian Perspective
will be addresses the underlying reasons
that push or pull Indonesian businessmen,
Indonesian migrant workers and
Indonesian students come to Taiwan for
their own purposes. Concept of ideas,
institution and interest are the main
analytical tools to examine the underlying
reasons.
The term ideas consist of private
knowledge and socially share knowledge.
These two knowledge narrows down into
several frameworks that caused Indonesian
people interact with Taiwan. There are three
main frameworks that help to explain the
underlying reasons of people’s migration:
environmental, economic, and cultural
frameworks. These frameworks will be used
to examine factors that endorsed Indonesian
businessmen; Indonesian migrant workers;
and Indonesian students choose Taiwan as
their destination for business, study and
work.
workers and Indonesian students. There are also other
people such foreign spouse and/or Indonesian academic
community. However, due to the limitation of this thesis
that will analyze the economic and socio-cultural ties
between Indonesia and Taiwan, hence the tool of analysis
only consists of those former three categories of people.
Furthermore, ideas contribute to the
making-up institution such Indonesian
Business Association, Indonesian Student
Association and Indonesian Migrant
Workers Association. These institutions
serve as independent agent that promotes
Indonesia and Taiwan relations on the
context of economic and socio-culture
issues. These ideas and institution resulted
in interest of Indonesia to maintain
economic and socio-cultural relations with
Taiwan. At the end, it will conclude that
people-to-people interaction creates three
kinds of interactions between Indonesia and
Taiwan: unofficial interaction, semi-official
interaction, and official interaction.
In order to get the valid results about
the proposed indicators below, this paper
conducts several interviews with relevant
people to support the secondary data. This
proposed framework will be discussed on
the next section of this paper.
Figure 5. Proposed Framework Explaining Indonesia-Taiwan Relations
Journal of ASEAN Studies 147
Discussion
This section covers the main analysis of
the paper, ideas, institution and interests.
To analyze ideas, institutions and interests
within Indonesia and Taiwan relations, this
section will be divided into three main
parts. First part discusses three main
frameworks of ideas that caused Indonesian
people come to Taiwan for the purpose of
business, working, and studying. Second
part concerns on the making up institutions
due to the shared ideas of the people. Third
part talks about the resulted interests from
the process of distribution of ideas and
making up institutions.
Framework of Ideas
There are a lot of factors that
endorse Indonesian students, Indonesian
migrant workers, and Indonesian
businessman to come to Taiwan. To explain
factors related to the people’s migration,
this paper conducts interviews with three
different groups of people. The first is
representative from Indonesian
businessmen who is being in charge as the
head of Indonesian Employers Associations
Store in Taiwan or Asosiasi Pengusaha Toko
Indonesia di Taiwan (hereafter APIT) and
representative from Indonesian Federation
of Taiwan Alumni Associations or Ikatan
Citra Alumni Taiwan Se-Indonesia (hereafter
ICATI). The second is the representative
from Indonesian migrant workers in
Taiwan, represented by the head of
Indonesian Migrant Workers Association in
Taiwan or Ikatan Pekerja Indonesia Taiwan
(hereafter IPIT). The last is representative
from Indonesian students in Taiwan,
represented by the head of Indonesian
Student Association in Taiwan or
Perhimpunan Pelajar Indonesia di Taiwan
(hereafter PPI Taiwan). In addition, the
interview was also conducted to some
government officials that are relevant to the
case studies.
Based on the results of interview, exist
three main frameworks to explain the
underlying reasons that influence student,
migrant worker, and businessman choose
Taiwan as their destination for study, work
and run business. First is environmental
framework which relates to the domestic
and external situations that endorse people
move to Taiwan. Second, economic
framework relates to economic
consideration of the people. Third is
cultural framework that associate with
cultural aspects that both develop in
Taiwan and Indonesia.
Environmental Framework
Environmental framework relates to the
domestic and external factors that endorse
people move to Taiwan on the purpose of
studying, working or doing business.
Domestic factor is internal conditions
within the state that force people to seek
working, studying or business’ opportunity
overseas. Meanwhile, external factor is
certain conditions in the host country that
attract people to look for better prospect
abroad. This factor associated with the
comparative advantage which is earned by
the designated country compare to others.
Indonesian businessmen, Indonesian
migrant workers and Indonesian students
go for Taiwan due to domestic and external
factors that stem within environmental
framework.
Based on the interview conducted with
the representative of Indonesian
businessmen, migrant workers and
students, this paper sum up several
environmental frameworks that cause
Indonesian people go to Taiwan for doing
business, working and studying.
148 Indonesia-Taiwan Relations: Indonesian Perspective
Economic Framework
Economic framework relates to
economic reasons that endorse people
seeking opportunity abroad for business,
working and studying. This framework
focuses on maximum economic benefits that
people could earn if they go to Taiwan
rather than to other countries. Three
categories of people consider economic
framework as one of the important pushing
factors that stimulate their willingness to
look for better opportunity in Taiwan.
Based on the interview conducted with the
representative of Indonesian businessmen,
migrant workers and students, this paper
sum up several economic frameworks. (see
Table 3).
Cultural Framework
The last framework is cultural
framework that concern about the influence
of culture within people-to-people
interactions. As argued by Wendt, ideas
consist of private and socially share
knowledge. Socially share knowledge
closely related to cultural matter that
influences interactions. This framework will
explain the impact of culture that eventually
stimulates Indonesian people to connect
with Taiwan. Culture could be related to
language and society’s beliefs and values.
Summary of cultural framework listed in
Table 4.
Table 2 Summary of Environmental Framework
Category of People
Environmental Framework
Domestic Factor External Factor
Indonesian businessmen
(run business in Taiwan)
Unfriendly experience of
socio-political conditions in
Indonesia toward ethnic
Chinese
Huge population of
Indonesian in Taiwan
Indonesian businessmen
(doing business with
Taiwan)
Unfriendly experience of
socio-political conditions in
Indonesia toward ethnic
Chinese
----
Indonesian migrant workers 1. Wants to gain working
experiences overseas
2. Low degree of education
and skills
Faster working placement
procedure and process in
Taiwan
Indonesian students Demands to transform the
structure of the university in
Indonesia
1. Taiwan will be an
important country in the
future
2. Taiwan offers
international
environment for study
3. Taiwan has good quality
of research equipments
and professors
4. Taiwan share similar
education system like in
the U.S.
Source: From the Author
Journal of ASEAN Studies 149
In sum, Indonesian businessmen,
migrant workers and students come to
Taiwan due to several ideas that narrow
down into three main frameworks:
environmental, economic, and cultural
framework. These ideas or private
knowledge will be very “thin” idea unless it
mixes with the shared knowledge or culture
(Wendt 1999, p.141). Thus, Ideas combines
with the influence of culture will endorse
people from one state to interact with
others. These frameworks successfully
explain the underlying reasons that cause
Indonesian people look for Taiwan in the
purpose of business, working and studying.
Creation of Institution and Norms
Drawn from the previous explanations,
shared ideas either private or shared
knowledge making up norms and
institutions. The previous sections, already
addressed the shared ideas of doing
business in and with Taiwan, working, and
studying in Taiwan. This section will
examine how shared ideas contribute to the
creation of institutions and norms within
Indonesia and Taiwan. Institutions and
norms relate to the existence of association
that built by those three types of people.
Table 3 Summary of Economic Framework
Category of People Economic Framework
Indonesian businessmen (doing business in
Taiwan)
1. Business opportunity in Taiwan
2. Small amount of capital to run business
Indonesian businessmen (doing business
with Taiwan/Taiwanese Business People)
Sizes of Taiwan’s enterprises
Indonesian migrant workers 1. High rate of unemployment
2. Bigger amount of salary in Taiwan
Indonesian students 1. Taiwan offers sufficient amount of
scholarship
2. Taiwan offers reasonable cost of tuition
fees and living
Source: from the Author
Table 4 Summary of Cultural Framework
Category of People Cultural Framework
Indonesian businessmen (doing business in
Taiwan)
Mandarin as means of communication
Indonesian businessmen (doing business
with Taiwan)
1. Mandarin as means of communication
2. Sense of ownership to the motherland in
China
3. Familiar and experienced with
Taiwanese culture and ethic
Indonesian migrant workers 1. Beliefs of filial piety that create high
demand of migrant workers
2. Mandarin as means of communication
Indonesian students Taiwan offers Mandarin’s environment for
study
Source: from the Author
150 Indonesia-Taiwan Relations: Indonesian Perspective
Therefore, this part will discuss the
existence of institutions such Asosiasi
Pengusaha Toko Indonesia di Taiwan (hereafter
APIT), Ikatan Citra Alumni Taiwan Se-
Indonesia (hereafter ICATI), Ikatan Pekerja
Indonesia Taiwan (hereafter IPIT) and
Perhimpunan Pelajar Indonesia di Taiwan
(hereafter PPI Taiwan). As argued by
Wendt, institution exists due to share ideas
of the people. Hence these institutions and
norms are existed due to the consequence of
private and shared knowledge or ideas.
Institution plays important role in bridging
the governmental relations and providing
network sharing and information.
Furthermore, these institutions serve their
role as independent agent either
independent economic agent and/or
independent socio-cultural agent5. They
have valuable strategic and bargaining
positions on the context of strengthening
Indonesian and Taiwan relations
particularly on economic and socio-cultural
issues.
In order to address the role of those
institutions, this paper also conducts in-
depth interview analysis with the head of
the representative of the Institutions. The
result of the interview is showed in the
Figure 6.
Asosiasi Pengusaha Toko Indonesia di
Taiwan or APIT was established in 2008
with the main aims to coordinate business
activities among Indonesian businessmen in
Taiwan. Due to a huge interactions and
populations of Indonesian stores in Taiwan,
it needs an association to coordinate
business activities to reduce the unfair
business competition and stigma among the
Indonesian businessmen (Head of Asosiasi
5I used the term independent agent for those institutions that
help to promote Indonesia and Taiwan relations. The term
independent agent means this institution promotes
economic and socio-cultural relations between Indonesia
and Taiwan but has independent status because their
movement not based on the order of the government. The
term will be used for those institution throughout this
section
Pengusaha Toko Indonesia di Taiwan (APIT)
2013). So far APIT has 70 members that
spread-out from the north into the south of
Taiwan. APIT serve as independent social
agent or “social ambassadors” because this
institution has two main social programs:
provide social assistances programs and
passport services for the migrant workers
(Head of Asosiasi Pengusaha Toko Indonesia di
Taiwan (APIT) 2013).
Social assistances program is APIT’s
activity related to the financial action’s
given toward Indonesian migrant workers
that have serious illnesses or get accident
during the working time, but not affordable
for the medication cost. The other program
is providing passport services for the
Indonesian migrant workers with
reasonable prices. The original price to
apply for new passport is NTD 750,
however, due to several technical reasons
such taking photo, fingerprint process, and
interview, the migrant workers should
spend around NTD 3,000 – 5000 for those
who live in Taipei and NTD 5,000 – 10,000
for those who live in Kaohsiung (Head of
Asosiasi Pengusaha Toko Indonesia di Taiwan
(APIT) 2013). Thus, to reduce the cost of
passport services, APIT works together with
the IETO to provide passport services
program with reasonable prices for the
migrant workers (Head of Asosiasi
Pengusaha Toko Indonesia di Taiwan (APIT)
2013). Hence, those migrant workers that
require to extent their passport only need to
go to APIT branch offices and give the
mandate of passport to APIT. On this case,
APIT also works as “social ambassadors”
both for the Indonesian government and
migrant workers. Furthermore, APIT also
serve as independent economic agent
through their business activities that
contribute to the foreign remittance and tax
for both Indonesia and Taiwan.
The second institution is ICATI. ICATI
serves as independent cultural agent and
independent economic agent that help to
Journal of ASEAN Studies 151
promote the economic and socio-cultural
relations between Indonesia and Taiwan.
On the context of independent cultural
agent, ICATI conducts several programs
such as hosted the Calligraphy Class which
sponsored by Taipei Economic and Trade
Office (hereafter TETO), provide assistances
for Indonesian students that willing to
continue their study in Taiwan, and
promoter for the sister-city MOU between
Singkawang, West Kalimantan with
Taoyuan, Taiwan (ICATI Website 2013).
ICATI activities always include the
representative from TETO, thus ICATI
build socio-cultural network with Taiwan
through its representative office in Jakarta.
On the context of independent economic
agent, ICATI served as a bridge for the
Taiwanese Investors that going to invest in
Indonesia (President of Indonesian
Federation of Taiwan Alumni Association
(ICATI in Bahasa) 2013). They create a
bridge that has two main functions. First,
ICATI built economic cooperation and
network with Taiwan Business Club in 2008
and TETO Economic Division (President of
Indonesian Federation of Taiwan Alumni
Association (ICATI in Bahasa) 2013). These
cooperation and network help to promote
investment activity in Indonesia which is
done by Taiwanese Business People.
Second, ICATI also help to reduce language
barrier that occurred between the
Taiwanese investors and local partners in
Indonesia. ICATI’s members are graduated
from Taiwan universities thus made them
able to speak fluent Mandarin.
The third institution that also builds
from the shared ideas of the people is
Indonesian Migrant Workers Association in
Taiwan or Ikatan Pekerja Indonesia Taiwan
(hereafter IPIT). IPIT was established in
2008 as a response toward a bunch of
violations against Indonesian migrant
workers from the Taiwanese employer
(Head of Ikatan Pekerja Indonesia Taiwan
(IPIT) 2013).There are two categories of
violation against the migrant workers: labor
case violations and non-labor case
violations (Head of Labor Department,
Indonesian Economic and Trade Office
(IETO) in Taipei 2013). Labor case violations
relate to the problem of payment of salary,
taxes and savings procedure with agents;
meanwhile non-labor cases include the case
of sexual harassment. In order to reduce
the burden and raise solidarity among
migrant workers against the violation, the
Indonesian migrant workers formed IPIT.
IPIT also serves as an independent
social agent that concern over the capacity
building activity for the migrant workers.
This institution has two main activities that
help to build the capacity knowledge of the
Indonesian migrant workers (Head of Labor
Department, Indonesian Economic and
Trade Office (IETO) in Taipei 2013). First,
provide training such language enrichment
program (Mandarin and English), music,
and computer learning. Second, hold a
discussion forum to search a solution for the
Indonesian migrant workers that have to
deal with some violation problems. In order
to solve the violation problems, IPIT also
work together with IETO office. From these
two programs, IPIT play as independent
social agents which help to solve the
problem of migrant workers by building a
linkage between Indonesian representative
government and Taiwan’s non-
governmental organization that focus on
migrant workers issues.
The last institution is PPI Taiwan. PPI
Taiwan was established on May 2nd, 2010
with four main aims: to strengthen the
sense of brotherhood and unity among
Indonesian students in Taiwan, to actualize
academic community and environment
among Indonesian students, to perform
actively as an Indonesian cultural
ambassador abroad, and to strengthen
international cooperation and partnership
within people and society both toward
Taiwan, Indonesia and international
152 Indonesia-Taiwan Relations: Indonesian Perspective
community (the Statute of Indonesian
Student Association in Taiwan, Article 7).
The member of PPI Taiwan comprises all
Indonesian students in Taiwan, hence, PPI
Taiwan actually has a lot of network from
its member because it includes Indonesian
students all over Taiwan that also have
various professional background or
knowledge (Head of Perhimpunan Pelajar
Indonesia di Taiwan (PPI Taiwan) 2013).
PPI Taiwan has several main programs
to fulfill its function as independent socio-
cultural agent. First, PPI Taiwan routinely
conducts capacity building activity with
migrant workers. This capacity building
activity always includes the Director of
Labor Department IETO as the guest
speaker with various topics such
immigration, employment, consular and
how to solve problems related to the
migrant workers.
In addition, the capacity building also
involves health counseling on the issues of
HIV/AIDS. This kind of capacity building
not only takes place in northern Taiwan but
also held in Central or Southern Taiwan.
Source: from the Author
Second, PPI Taiwan also actively
organized focus group discussion, seminar
or public discussion that discusses various
academic topics and invites professional
guest speakers. This activity aims to
increase the capacity building of Indonesian
students in Taiwan.
Third, PPI Taiwan also involve within
governmental research project facilitated by
IETO. Fourth, PPI Taiwan always
participates and supports Indonesian
Culture Exhibition or Festival which held
by Indonesian students to introduce
Indonesian culture toward Taiwanese
society. This activity can create mutual
understanding between Indonesia and
Taiwan both in present and future time.
The last, PPI Taiwan provide
information and networking center for
Indonesian students that are going to study
in Taiwan. In this way, PPI Taiwan also
helps Taiwan to improve the number of
international students from Indonesia that
would like to earn degree in Taiwan. In
sum, the emergence of PPI Taiwan helps to
promote people-to-people interactions
between Indonesia and Taiwan under the
absence of diplomatic relations.
APIT
•Serve as
independent
economic and
social agent
•APIT’s activities
fully supported by
the IETO Office in
Taipei
ICATI
•Serve as
independent
economic and
cultural agent
•Build economic
cooperation and
linkages with TBC
and TETO
IPIT
•Serve as
independent
social agent
•Work and
cooperate with
the IETO to solve
the violations
against Indonesian
migrant workers
PPI Taiwan
•Serve as
independent socio
and cultural
agents
•PPI Taiwan’s
activities legally
supported by the
IETO
•Create a linkage
between
people/students
and government
Figure 6 The Role of Institutions in Indonesia-Taiwan Relations
Journal of ASEAN Studies 153
Overall, similar distribution of ideas
about coming to Taiwan for the purpose of
business, working, and studying contribute
to the making up institutions. These
institutions are formed under the sense of
unity and brotherhood to help each other
and to improve interaction within
businessmen, migrant workers and
students.
Furthermore, those four institutions
work independently as economic and socio-
cultural agent; hence they can promote
Indonesia and Taiwan relations without any
fear of political interventions or pressure
that could occur from any sides as a
consequent of one-China policy that hold by
Indonesian government (Head of
Perhimpunan Pelajar Indonesia di Taiwan (PPI
Taiwan) 2013). The existence of these
institutions also provides an incentive for
the Indonesian government to maintain its
economic and socio-cultural relations with
Taiwan. It proves through several official
governmental exchanges that occurred
through the incentives that stem from the
people-to-people interactions.
Economic and Socio-Cultural Interests
between Indonesia and Taiwan
According to Wendt (1999) shared ideas
both private knowledge and socially shared
knowledge making up norms and
institutions that constitute state’s identities
and interests. The two previous sections of
this article have already discussed about
shared ideas and making up institutions
between Indonesia and Taiwan. Hence, this
section will analyze the third indicators of
independent variable about economic and
socio-cultural interest between Indonesia
and Taiwan. These interests stem due to the
shared ideas and creation of institutions by
the Indonesian businessmen, Indonesian
migrant workers and Indonesian students.
Furthermore, these interests cause three
levels of interactions between Indonesia and
Taiwan that stem from people-to-people
interactions.
The first is unofficial interaction that
purely consists of only economic and socio-
cultural interactions that do not include
formal governmental exchanges. The
second is semi-official interaction that has
average political implications. This level
includes official governmental exchanges
either from Taiwan or Indonesia. The last is
official interaction that comprises of official
government-to-government exchanges
between Indonesia and Taiwan. This level
gives highest political implications because
it contains official government exchanges.
In order to explain economic and socio-
cultural interest between Indonesia and
Taiwan as well as the level of interactions
this section will be divided into two parts,
economic interests and socio-cultural
interest.
Economic Interests
Economic interests of Indonesia toward
Taiwan stem from people-to-people
interactions that build from Indonesian
businessmen together with Taiwanese
investors. Indonesia that adhere one-China
policy principle will be difficult to define
and conduct its economic relations with
Taiwan. However, due to Indonesian
businessmen that collaborate with
Taiwanese investors created massive
economic interactions and networks, both
countries are able to maintain its economic
relations. There are three levels of economic
interactions that appear to measure
economic interests between Indonesian and
Taiwan.
The first is unofficial economic
interaction. On this level, interactions
between Indonesia and Taiwan purely built
through economic activities such trade and
investment conducted either by Indonesian
businessmen or Taiwanese business people.
There are no official governmental
154 Indonesia-Taiwan Relations: Indonesian Perspective
exchanges between the two countries on
this level of interactions. Economic activities
on this level include but not limited to
foreign direct investment from Taiwan to
Indonesia, recruitment of Indonesian
workers to work at Taiwanese factories
built in Indonesia, trade through private
firms, business or trade conference
conducted by private sector, seminar and/or
fairs that not include government officials,
and other activities that only rely on purely
economic interactions. So, the final outcome
from those activities would be to fulfill the
economic interest between Indonesia and
Taiwan.
The second level is semi-official
economic interactions that comprise
economic exchanges between officials either
from Indonesia or Taiwan with Indonesian
businessmen and/or Taiwan business
people.
Economic activities within this level
were mostly conducted by independent
economic agents such as ICATI and Taiwan
Business Club that also invite governmental
officials whether from Indonesian or
Taiwan. From 1990 until 2012, there have
been 6 semi-officials economic interactions
between Indonesia and Taiwan.
The table 6 shows semi-official
economic exchanges between Indonesia and
Taiwan. These activities mostly run by
Taiwan business people that work together
with Indonesian businessmen, which also
involved government officials either from
Indonesia or Taiwan. The outcome not only
contributes to economic benefits but also
average political implications because
involving some of government officials.
Table 6. Semi-Officials Economic Exchanges between Indonesia and Taiwan, 1990-
2012
Date Semi-Officials Economic
Exchanges
Main Aims
May 1991 Jakarta-Taipei School was
established
To fulfill the needs of better education of
Taiwanese Businessmen’s children that
reside in Jakarta
July 1995 Surabaya-Taipei International
School was established
To fulfill the needs of better education of
Taiwanese Businessmen’s children that
reside in Surabaya
2000s Taiwan reduce the amount of
capital to invest or run business in
Taiwan
To attract more investment or business
activity from foreign countries including
Indonesia
July 2011 Indonesia and Taiwan Business
Day organized by TAITRA was
held in Taipei
To discuss and to improve future
economic relations between Indonesia
and Taiwan
September
2011
MOEA Taiwan launched a
business tour to Indonesia for the
investment and business activities
To facilitate the investment and business
activities of Taiwanese investors in
Indonesia
July 2012 Hon Hai Chairman (Foxconn)
Terry Gou, visited Indonesia as the
invitation from the Indonesian
government
To survey the market for investment in
Indonesia
Source: Data collected randomly from reliable sources such Governmental Official
Webpage and Indonesia and Taiwan Newspaper
Source: Data collected randomly from reliable sources such Governmental Official
Webpage and Indonesia and Taiwan Newspaper
Journal of ASEAN Studies 155
The third level is official economic
interaction. This level of interaction
includes official economic exchanges that
involve high-level of government officials
such as Minister or Deputy Representative
between Indonesia and Taiwan.
Official economic exchanges embrace
two main activities: sign MOU to strengthen
economic relations and governmental visit
or exchange.
Table 7 Officials Economic Exchanges between Indonesia and Taiwan, 1990-2012
Date Official Economic Exchanges Main Aims
1990 Indonesia and Taiwan signed Bilateral
Investment Protection Agreement
To give protection and non-discrimination
status for foreign investment in Indonesia,
including Taiwanese investment
January
1995
The Indonesian Chamber of Commerce
in Taipei was renamed into the
Indonesian Economic and Trade Office
(IETO) in Taipei
To further strengthen the economic and trade
activity between Indonesia and Taiwan. This
ideas stem due to the increasing number of
investment and trade activities that stem from
people-to-people interactions
1995 Indonesia and Taiwan signed
Agreement for the avoidance of double
taxation and the prevention of fiscal
evasion with respect to taxes on income
To regulate the taxation system in order to
avoid double taxation that could stem from
economic activities between Indonesia and
Taiwan
July 2010 Indonesia's Minister for Maritime
Affairs and Fisheries visited Taiwan to
propose joint development in Morotai
Island to President Ma Ying Jeou
To develop Morotai Island and to diversify
Taiwanese investment in Indonesia. Taiwanese
investment in Indonesia mostly concentrated
in Java Island under the area of Jababeka
Group
August
2010
The Chairman of Indonesia Investment
Coordination Board (BKPM), Gita
Wirjawan, visited Taipei and Kaohsiung
for investment purpose
To increase investment activities between
Taiwanese investors and Indonesian
businessmen
September-
October
2010
Taiwan Ministry of Economic Affairs,
Dr. Yen-Shiang Shih made a visit to
Jakarta together with Taiwanese
business delegation
To make a co urtesy call on BKPM and to
vi sit J aba beka and Lippo Ci karang
Expo rt Processing Zo ne for assessment
of investment.
March 2011 Indonesian Minister of Marine Affairs
and Fisheries visited Taiwan to
participate in the "Forum for
Cooperation in Morotai" and advocate
bilateral cooperation toward
development in the island
To discuss the further implementation of jont
development over Morotai Project
May 2012 Indonesian Trade Minister visited
Taiwan
To discuss the investment possibility of
Foxconn
December
2012
Taiwan-Indonesia signed memorandum
of understanding on a plan to jointly
develop Morotai Island
To develop Morotai Island through investment
activities that conducted by Taiwanese
investors and local partner of Indonesian
businessmen
Source: Data collected randomly from reliable sources such Governmental Official
Webpage and Indonesia and Taiwan Newspaper
156 Indonesia-Taiwan Relations: Indonesian Perspective
From 1990 until 2012, there have been 9
official economic interactions in terms of
trade and investment that conducted by
both Indonesia and Taiwan government.
These official economic contact, mainly are
driven to accommodate the investment and
trade interests that stem from people-to-
people interactions. The official interactions
can be in the Table 7.
Based on the table 7 above, it shows that
official governmental interactions between
Indonesia and Taiwan were mainly formed
through the interests of Taiwanese
investment and Indonesian businessmen
that would like to further increase
investment and trade activities. Economic
activities that conducted through
Indonesian businessmen and Taiwan
business people, give political implications
toward government affairs. Their activities
force both governments to work together
though under the absence of diplomatic
relations.
The government works as economic
facilitator and economic provider for the
massive interactions that emerge from
people-to-people interactions.6 The term
economic facilitator and provider refer to
some activities such issuing visa for those
who want to run business both in Indonesia
and Taiwan, formulating regulations to
ensure investment activities, searching local
partners for Taiwanese investments,
providing information about trade and
investment activities, signing MOU to lure
investment and trade relations.7 In sum,
Indonesia’s economic interest toward
Taiwan stems and shapes from the
interactions that built by Indonesian
businessmen and Taiwanese investors.
6 This statement also supported by Indonesian
representative officials in IETO based on the interview with
the Head of Industry Department, Indonesian Economic and
Trade Office in Taipei, done in March 13rd, 2013 and
interview with the Head of Investment Department,
Indonesian Economic and Trade Office in Taipei, done on
March 13rd, 2013
7 Ibid.
Socio-Cultural Interests
Indonesia’s socio and cultural interest
toward Taiwan mostly stem from the
interactions that built by Indonesian
migrant workers and Indonesian students
in Taiwan. Their huge population and
interaction in Taiwan also caused three
different levels of interactions. On the
context of socio-cultural relations, interest
not only forms through people but also
from the existing institutions.
Unofficial socio-cultural interactions
between Indonesia and Taiwan occur
through several socio-cultural activities
done by Indonesian migrant workers and
Indonesian students. Indonesian migrant
workers through its institution called IPIT
usually conduct a discussion forum to solve
violation related to migrant workers. This
discussion forum involves other institutions
from Taiwan such as Taiwan International
Workers Association. Both institutions
create unofficial social interactions through
their discussion forum. Furthermore,
migrant workers that work as care-taker
also contribute to unofficial socio-cultural
interactions both for Taiwanese society and
Indonesia.
In addition to Indonesian migrant
workers, Indonesian students in Taiwan
also build unofficial socio-cultural relations
with Taiwan. These students periodically
held Indonesian Cultural Festival or
Exhibition in order to promote Indonesian
culture to international community
particularly Taiwan.
This event not only invites students
from Indonesia to perform but also students
and faculty member of Taiwan’s university
to enjoy the cultural performance. This
activity creates unofficial cultural exchanges
between Indonesia and Taiwan through
Indonesian’s dance, music and drama
performance.
Journal of ASEAN Studies 157
The second level of interactions is semi-
official interactions. On this level, socio-
cultural interactions is not only built by
Indonesian students but also conducted by
Indonesian businessmen under their own
institution. From 1990 until 2012, there have
been six semi-official interactions between
Indonesia and Taiwan as shown in the
Table 8.
The table 8 clearly describes several
semi-official exchanges between Indonesia
and Taiwan in terms of socio-cultural
relations. Exchanges mostly occurred due to
the interactions built from Indonesian
students and Indonesian businessmen.
On this context, Indonesian
businessmen under ICATI not only
contribute to semi-official economic
exchanges but also semi-official socio-
cultural exchanges. The outcome of these
exchanges will improve the number of
Indonesian students in Taiwan, strengthen
socio-cultural interactions in the future, and
create mutual understanding among the
society.
The last level of interactions is official
socio-cultural interactions that include
government to government exchanges
between Indonesia and Taiwan.
Table 8 Semi-Officials Socio-Cultural Exchanges between Indonesia and Taiwan,
1990-2012
Date Semi-Official Exchanges Main Aims
2004 Taiwan through its Ministry of
Education provide Taiwan
Government Scholarship for
Indonesian students
To encourage outstanding international students
to undertake degree studies in Taiwan so as to
familiarize themselves with academic
environment in Taiwan and promote
communication, understanding and friendship
between Taiwan and countries around the
world
April 2010 ICATI together with Taiwan
Business Club and TETO
representative visited West
Kalimantan, Indonesia
In order to realize MOU sister-city between
Taoyuan and Singkawang, West Kalimantan
May 2010 The Elite Study in Taiwan (ESIT)
delegation visited Indonesia
To enhance education cooperation with
Indonesia
October 2010 The Ministry of Education Taiwan
held the first Taiwan Higher
Education Fair in Indonesia
To strengthen cultural and educational
interchange between Taiwan and Indonesia
September-
October 2011
The second Taiwan Higher
Education Fair took place in Aceh,
Yogyakarta and Surabaya
to facilitate Indonesian students with
information of scholarship and university
admission procedure
October 2012 The third Taiwan Higher
Education Fair held in Surabaya
and Jakarta
to facilitate Indonesian students with
information of scholarship and university
admission procedure
Source: Data collected randomly from reliable sources such Governmental Official
Webpage and Indonesia and Taiwan Newspaper
158 Indonesia-Taiwan Relations: Indonesian Perspective
Under the absence of diplomatic
relations, it would be difficult for Indonesia
and Taiwan to conduct formal
governmental exchanges; however, people-
to-people interactions contribute to the
official socio-cultural interactions between
the two countries.
Furthermore, the existence of
institutions in Taiwan also helps the
Indonesian government to have better
understanding toward Taiwan. During 1990
until 2012, there have been 7 governmental
exchanges between Indonesia and Taiwan
on terms of socio-cultural issues. Detail
exchanges sum-up in Table 9.
Source: Data collected randomly from reliable sources such Governmental Official
Webpage and Indonesia and Taiwan Newspaper
Journal of ASEAN Studies 159
The table above shows that official
socio-cultural exchanges stem after the
massive interactions lead by Indonesian
migrant workers and Indonesian students
in Taiwan. On the context of migrant
workers, Indonesia signed MOU in 2004
and 2011. In 2004, Indonesia signed MOU to
overcome the problem of ban Indonesian
migrant workers. Moreover, in 2011
Indonesia renewed the MOU with Taiwan’s
government. Furthermore in July 2011, the
IETO office set up Labor Department to
undertake the migrant workers affairs.
Those efforts are in line with the dynamic
interaction which emerged from the
massive connection produced by
Indonesian migrant workers in Taiwan.
The Indonesian government that adhere
one-China policy will be difficult to conduct
official governmental relations in terms of
socio-cultural relations. However, due to
the existence of Indonesia migrant workers
in Taiwan, the Indonesian government is
able to conduct official governmental
exchanges. On this manner, the Indonesian
government serves its basic function as
economic and security provider for its
citizen. In addition, the government also
works together with institution such IPIT,
APIT and PPI Taiwan to maximize the
state’s function as economic and security
provider toward Indonesian migrant
workers.
Similar case with the migrant workers,
Indonesian students in Taiwan also shape
the socio-cultural interests of Indonesia
toward Taiwan. Indonesian government
signed MOU on higher education
cooperation in 2011 in order to improve the
socio-cultural exchanges between two
countries. Furthermore, both countries also
worked to hold Indonesia and Taiwan
Higher Education Summit. Those efforts
conducted to strengthen socio-cultural
exchanges between Indonesia and Taiwan
that already well-established through the
intense interactions of Indonesian students
in Taiwan. Moreover, the Indonesian
government representative in Taipei also
works with PPI Taiwan to further discuss
about the possibility of opening up the
education attaché in IETO in the near future
(Head of Perhimpunan Pelajar Indonesia di
Taiwan (PPI Taiwan) 2013). Thus, in this
line, shared ideas of entering Taiwan in the
purpose of study contribute to the making
up institutions that eventually influence
state-to-state interactions.
In sum, Indonesia economic and socio-
cultural interest toward Taiwan stem and
constitute from the process of distribution
ideas and creation of institutions which
built by Indonesian businessmen,
Indonesian migrant workers and
Indonesian students in Taiwan. These three
categories of people that serve as the
promoter of ideas lead the interaction with
Taiwan which eventually encourages the
Indonesian government to maintain its
economic and socio-cultural relations with
Taiwan. In addition, people-to-people
interactions resulted in three different levels
of exchanges: unofficial, semi-official and
official exchanges.
Conclusion
As mentioned before, the main aim of
this paper is to analyze the underlying
reason that caused Indonesia is able to
nurture its economic and socio-cultural
relations with Taiwan even though under
the absence of political diplomatic relations.
In order to analyze the underlying reason,
this thesis employs constructivist approach
that focus on the role of people-to-people
interactions between Indonesia and Taiwan.
This paper argues that Indonesian
people as the promoter of ideas lead the
interactions with Taiwan thus made the
Indonesian government maintains its
economic and socio-cultural relations with
Taiwan. Ideas that narrow down into
160 Indonesia-Taiwan Relations: Indonesian Perspective
private knowledge and socially shared
knowledge influence the Indonesian
businessmen, Indonesian migrant workers
and Indonesian students to conduct people-
to-people interactions with Taiwan.
Moreover, these distributed ideas
contribute to the making up institutions.
Those institutions served as independent
economic agent, independent social agent
and independent cultural agent that
influence the work of the structure which is
the government. The distribution of ideas
together with creation of institutions
constitutes interest of Indonesia toward
Taiwan.
Economic interest of Indonesia toward
Taiwan stem from people-to-people
interactions that built from Indonesian
businessmen together with Taiwanese
investors, meanwhile Indonesia’s socio and
cultural interest toward Taiwan stem from
the interactions that built by Indonesian
migrant workers and Indonesian students
in Taiwan. During 1990 until 2012, there
were both 6 semi-officials exchanges in
terms of economic and socio-cultural issues.
Meanwhile, in terms of economic official
exchanges, Indonesia conducted 9 contacts
with Taiwan; while 7 government
exchanges in terms of socio-cultural issues.
These contacts occurred after intense
interactions conducted by Indonesian
businessmen, Indonesian migrant workers
and Indonesian students.
Under the absence of diplomatic
relations, Indonesian government served as
economic and security provider for the
activities built by Indonesian businessmen,
Indonesian migrant workers and
Indonesian students. It is the basic function
and the obligation of the state to protect
their citizen interest wherever the citizen
reside or living. On the context of economic
and security provider, the government
facilitates people-to-people interactions
through some activities such issuing visa,
signing MOU that can strengthen the
mutual interactions, providing better
environment for economic activities,
formulating regulations and other activities
that categorized as the basic functions of the
state. The clear picture of Indonesia and
Taiwan relations shows below (Figure 7).
Semi-official exchanges
between Taiwan and
Indonesia
TaiwanIndonesia No Diplomatic Relations
People-to-people interactions:
1. Indonesian Businessmen
2. Indonesian Migrant Workers
3. Indonesian Students
Un-official exchanges
between Taiwan and
Indonesia
Official exchanges
between Taiwan and
Indonesia
Economic and Socio-
Cultural Interests
Ideas – Knowledge
Institutionalism – APIT,
ICATI, IPIT and PPI Taiwan
Figure 7 Analytical Framework on Indonesia-Taiwan Relations
Journal of ASEAN Studies 161
At first Indonesian and Taiwan do not
have official diplomatic relations. However,
people in terms of Indonesian businessmen,
Indonesian migrant workers and
Indonesian students keep coming to Taiwan
or keep in touch with Taiwan for business,
working and studying activities. These
people shared their ideas about private and
socially shared knowledge that caused them
to come to Taiwan. Moreover, in Taiwan,
these people build some institutions to
further strengthen their interactions with
Taiwan. Furthermore, shared ideas that
contribute to making-up institutions
constitute the economic and socio-cultural
interests of Indonesia. The economic and
socio-cultural interests define through three
different levels of exchanges between
Indonesian and Taiwan: unofficial
exchanges, semi-official exchanges, and
official exchanges. The second and third
level of exchanges not only consists of
economic and socio-cultural interest but
also contribute to the political implications
in terms of government-to-government
relations. Hence, due to the Indonesian
people as promoter of ideas lead the
interactions with Taiwan; Indonesia is able
to maintain its durable economic and socio-
cultural relations with Taiwan despite
under the absence of diplomatic relations.
About Author
Luh Nyoman Ratih Wagiswari Kabinawa is a
Junior Lecturer at Department of International
Relations, Bina Nusantara University. She
obtained her master degree from Institute of
China and Asia-Pacific Studies, National Sun
Yat-sen University, Taiwan, ROC. Her area of
interest includes Taiwan’s relation with
Southeast Asia, ethnic Chinese in Southeast
Asia, people-to-people relations, and
international political economy. She can be
contacted at lratih@binus.edu,
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