Jakarta –
The events that hit Uganda could happen in Indonesia. Uganda reportedly failed to pay its debts to China so that it gave up its infrastructure, namely Entebbe International Airport.
“It’s very, very possible, Turkey wasn’t strong before, Turkey was the same as Uganda. Malaysia, if it’s not too late, Mahathir will be hit. Countries that are alert will end it immediately, Indonesia will continue,” said former Secretary of the Ministry of SOEs Said Didu to detik.com, Monday (11/29/2021).
He said the Jakarta-Bandung high-speed rail project was the main ‘bridge’. If that fails, China is likely to ask for compensation in the form of the Jakarta-Surabaya Railway project at an expensive price. If that fails, China will ask for acquisitions and ask for other projects.
“If it fails, then he acquires it. When he acquires it, he is in control. If it still fails, you can ask the port to ask for the airport, that’s the way. China’s method is always, it’s a trap, it’s a trap for its colonial economic cooperation,” he explained.
Said Didu himself is not sure that the Jakarta-Bandung high-speed train will succeed and return the investment.
“No return on investment, I’m sure. And in my opinion, the fast train period is over, no developed country has built the fast train, it’s all lost,” he explained.
Center of Reform on Economics (CORE) economist Yusuf Rendy Manilet said that many assumptions emerged from the confiscation of Uganda’s airport by China. It could be, he said, the matter had been agreed upon by both of them.
“First, of course, the loan clause, it is possible that the confiscation clause is indeed included in the loan that was given by China at the beginning and has been agreed upon by the two countries, my assumption is like that,” he explained.
However, he continued, if you look at data on foreign loans, loans from China are relatively small and it shows the risks.
“From there, we can actually judge that the potential risk is smaller. I say that if you look at the relatively small proportion of foreign debt that Indonesia has given through China,” he said.
However, he said, what happened in Uganda could be a lesson for Indonesia.
“I’m not saying that then this high-speed rail project has potential. But once again Uganda can be a kind of lesson that if we transact or establish loan cooperation with China there are risks like that,” he explained.
(acd/eds)
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