Interaction between Actors in China’s Energy Diplomacy in

Indonesia Period 2002-2012

Dias Sukmarini

Indonesia University, Depok

Keywords: Interaction between China and Indonesia, Energy Diplomacy, Non-state Actor, State-Owned Enterprises

Abstract: This study aims to analyze the interaction between actors in China’s energy diplomacy in Indonesia by using

state actor and non-state actors based on their national energy policy. In this paper, the author analyzes the

involvement of the state actors and non-state actors, their role, as well as the interactions that are formed in

the diplomatic activities, especially Chinese energy diplomacy in Indonesia in an effort to obtain energy

resources. State actors are represented by government officials, while non-state actors are represented by

Chinese and Indonesian state-owned energy companies. The author describes and explains the interactions of

actors based on three forms of interaction in economic diplomacy by Susan Strange’s theory of diplomacy.

First is diplomacy between countries or state-state diplomacy, second is diplomacy between the firm and state

or state-firm diplomacy, and third is diplomacy between companies or firm-firm diplomacy. Qualitative

methods are applied in this research, by taking data through literature studies. The study found that the three

forms of interaction in diplomacy between state actors and non-state actors are related to each other. The

connection of interactions in each diplomacy shows the political and economic relations that affect the

effectiveness of energy’s agreements between countries.

1 INTRODUCTION

In recent years, globalization has been showing many

remarkable changes in the international relations.

This is indicated by the development of technology

such as the fast pace of production and

communication, that pushing the changes of

international economic structure that raising the

awareness of the international market. Now, the state

has to compete with another state through their

economic capabilities or wealth for showing their

states' power in international relations. In pursuit of

that goal, many states have to cooperate not only with

other states but also with non-state actors such as

multinational firms. These dynamics shows the

increase in the role of non-state actors, one of which

is international firms or can be called a multinational

company in achieving home country’s interests.

Recognizing this, China has undergone a historic

economic transformation from totally centrally

planned economy and self-reliance to market-

oriented economy in 1978, In that policy, they

utilized state-owned companies to achieve their

interest in economic development. In my opinion,

China’s state-owned enterprises are taking a role as a

non-state actor. There are several debates which are

pointing out that state-owned enterprises can be

described as non-state actor. Mostly, the debates

focused on China’s perspective because more than

half of the firms in China are state-owned enterprises.

SOEs provide the largest revenue in China, especially

in strategic sectors such as finance, infrastructure and

energy. According to Fortune Global 500, Sinopec

and China National Petrochemical Company (CNPC)

are the second and third SOEs' 'TOP earnings' in 2006

in Asia. The classification of state-owned enterprises

as non-state actors is based on the interests they have.

Non-state actors have a role to support national

interests while the government has a big role in

managing or managing the corporate structure.

The strengthening of the active role of non-state

actors in state-level cooperative relations, rejects the

general idea of diplomacy that state-level cooperation

in bilateral diplomacy involves only state actors such

as ministries and government officials. Diplomacy

also involves non-state actors such as multinational

corporations. This shows that there has been a shift in

competition for power. Today, competition for power

has shifted from competition to wider territory to

competition for wealth.

Sukmarini, D.

Interaction between Actors in China’s Energy Diplomacy in Indonesia Period 2002-2012.

DOI: 10.5220/0010272900002309

In Proceedings of Airlangga Conference on International Relations (ACIR 2018) - Politics, Economy, and Security in Changing Indo-Paciﬁc Region, pages 47-54

ISBN: 978-989-758-493-0

Figure 1.

Normatively, bilateral cooperation agreements are

supported by the range of time the establishment of a

MoU or cooperation agreement between the two

countries. However, in Indonesia's energy

cooperation relations, Indonesia's energy areas are

almost dominated by the Chinese state than other

Asian countries, especially Japan which has already

established an energy forum with Indonesia. China

responds to the global situation by using state-owned

energy companies such as CNOOC, CNPC and others

in an effort to meet the national interests. On the other

hand, the importance of multinational corporations in

global competition between countries has led to a

decrease in state bargaining power (Stopford and

Strange, 1991: 215). The involvement of every

diplomatic actor with his own interests in

international cooperation leads to complex

interactions. The interaction between actors in

diplomacy also determines the effectiveness of the

established cooperation agreement.

Based on the dynamics and success of the strategy

undertaken by the Chinese state, this research aims to

see the relation of the non-state actors' role

represented by Chinese multinationals toward their

national interests through interactions in China's

energy diplomacy activities in Indonesia. Therefore,

the problem formulation used is "How is the

interaction between actors in Chinese energy

diplomacy in Indonesia period 2002-2012?"

2 METHOD

This research uses a qualitative approach in

explaining the interaction formed between diplomacy

actors. The method used in this research is descriptive

and explanative analysis. According to Neuman

(1997), descriptive analytical methods provide an

overview of the situation, social circumstances, or

relationships described in detail and specifically by

focusing on the "how" and "who" questions (p.39).

This analysis is used to illustrate the relationship

between Chinese energy diplomacy and the

interactions that it establishes. The method of

explanative analysis is based on a descriptive analysis

which then identifies the reason for something (p.40).

Neuman adds that this method provides an

explanation of social theory or previous research,

then extends it to explain new problems or conditions.

In conducting this research, researchers used the

concept of diplomacy by John M. Stopford and Susan

Strange (1991). They show that structural changes in

the international political economy create a global

competition that causes the state not only to interact

with other countries but also with multinational

corporations through the establishment of bilateral

diplomatic relations. In addition, global competition

also forces multinational companies to mutually

diplomacy one another.

This model of analysis shows that the actors

involved in triangular diplomacy are state and

multinational corporations as non-state actors. Three

sides of diplomacy are intertwined in negotiation and

bargaining. the bargaining position of each party is

different. Bargaining activities on both sides of the

new diplomacy (corporate-state diplomacy and

corporate diplomacy) have interdependence

relationships with the development of negotiations

between countries and countries (Strange, 1992: 14).

The interactions formed in diplomacy determine the

degree of dependence of each actor and have an

influence on the continuity of existing energy

cooperation agreements.

The selected period is between 2002 and 2012

because in 2002 it was the first time a memorandum

of understanding between China and Indonesia in the

energy sector through ICEF was signed. While the

analysis ends in 2012 due to the form of 10 years of

development of energy cooperation between

Indonesia and China. The selection of time also based

on a change in energy policy in Indonesia that

resulted in a change in the authority of BP Migas that

became one of the actors in energy cooperation in

Indonesia, as well as the change of leadership in

Indonesia during that period. In addition, 10 years

time is also considered to show the form of interaction

that is formed between Chinese and Indonesian

actors. The independent variables of this research are

the actors in diplomacy, ie the countries and

multinational corporations as well as the fossil energy

resources that are the focus of Chinese energy

diplomacy. While the dependent variable is a form of

interaction that is formed in China's energy

diplomacy with Indonesia.

State-State Firm-Firm

State-Firm

Sto

ford dan Stran

1991: 22

ACIR 2018 - Airlangga Conference on International Relations

3 RESULTS

3.1 Actors in China’s Energy Policy

The new SOE reforms during Jiang Zemin's reign

were established with several major focuses, one of

which was the amendment of the law on SOE

ownership in 1999. The law provides greater

emphasis on SOE ownership to the private sector.

Nevertheless, SOE remains dominant in some sectors

such as the major industrial sectors with high

technology, the public service sector, the country's

main national security sector, and the non-renewable

natural resources sector.

The energy sector is receiving special attention in

China's new SOE reforms. it is because the energy

sector is one of the important sectors in the country's

economic development in China. In addition, China

also carries out energy security policy as a form of

effort to secure the national energy supply by

establishing bilateral relations with energy producing

countries through national energy companies

(Ziegler, 2006: 8). Most of the Ministry of China has

an interest in SOE, so the increasing role of SOE in

economic and energy policy is inseparable from the

political interests of the actors. Ministries that are

directly involved include, State Assets Supervision

and Administration Commission (SASAC), Ministry

of Finance (MOF), Ministry of Foreign Affairs

(MOFA), National Development and Reform

Commission (NDRC), National Energy

Administration (NEA), National Energy Commission

(NEC), the China Banking Regulatory Commission

(CBRC). Each Ministry has its own role in dealing

with SOE's Chinese energy.

As one of the instruments in economic and

development policy, the energy sector has an

important position in government. The positions of

energy companies that are directly under the state

council or under the ministry have an impact on the

increased activities of the state-owned energy

companies. Every China's state-owned energy

company has its own roles and duties. Kusuma (2008)

states that the implementation of China's strategy

through state-owned energy companies has different

patterns such as exploration, investment, exports, and

imports. The division of tasks is intended to maximize

the performance and acquisition of desired energy

resources. For the oil and gas sector, China uses three

state-owned energy companies, namely CNPC,

CNOOC, and Sinopec

The China National Petroleum Company (CNPC)

is China's state-owned energy company established to

replace the Petroleum Industry Ministry in 1988.

CNPC is engaged in oil and gas exploration and

production for upstream or midstream downstream

sectors such as refining, oil and gas processing,

distribution, and marketing. CNPC is a state-owned

energy company with the largest income and

production in China. CNPC's former chairman, Jiang

Zemin, also served as director of SASAC and 5th

China President. CNPC began to expand its business

and became a multinational company in 1993. Since

then, CNPC has opened many branches of companies

and subsidiaries in export-oriented oil and gas

exporting countries. One of CNPC's subsidiaries is

PetroChina.

PetroChina Company Limited (PetroChina Co.

Ltd) was established in 1999 through a joint-stock

company with CNPC. PetroChina Company acts as

an oil and gas producer and distributor in China

engaged in the exploration, production development

(research and design or R & D), refining,

transportation, and marketing. Beside to domestic,

PetroChina is also actively involved overseas such as

investing through acquisitions and mergers with

overseas companies and holding shares in Hongkong,

Shanghai, and New York. (Mursitama and Yudono,

2010: 115).

China National Offshore Oil Company (CNOOC)

is one of China's oldest state-owned energy

companies established in 1982. The company is

engaged in upstream and mid-downstream such as

exploration, development, production, oil refining,

engineering services such as oil and gas blocks,

logistics services, financial services, and alternative

energy (Mursitama and Yudono, 2010: 112). the

CNOOC company focused on the offshore sector

activities.

The China National Petrochemical Corporation

(Sinopec) was formed from the merger of two

Ministries, namely the Ministry of Petroleum

Industry and the Ministry of Chemical Industry in

1983. Sinopec's main tasks include exploration,

development, oil and gas production and

petrochemical, refining, storage, transportation and

marketing of oil products and petrochemicals. Based

on this, Sinopec performs production and marketing

both in oil, gas and petrochemical sectors. Beside

Sinopec, there are other energy companies involved

in the petrochemical subsector. The company is

Sinochem. China National Chemicals Import and

Export Corporation (Sinochem) is a state-owned

energy company that plays a role in the trade of

energy industries such as exports and imports. Unlike

other energy companies, Sinochem is under the

supervision of the Ministry of Foreign Trade and

Economic Cooperation (Kusuma, 2008: 37).

Interaction between Actors in China’s Energy Diplomacy in Indonesia Period 2002-2012

Economists consider that generally state-owned

enterprises put a burden on the national economic

development sector. This is due to several factors,

such as direct government intervention, restrictions

on corporate budgets, ownership of ambiguous rights,

and lack of innovation (Li, 2002: 14). However, the

success of China's national economic growth in 1980

and 1990 shows that SOE in China has actually

helped the country in improving its economic growth.

Besides that, the form of China's state-controlled

economic development model created the Chinese

economy better than using the free-market model

form (in Li, 2002: 15).

3.2 China’s Energy Diplomacy in

Indonesia

3.2.1 State-State

In the implementation of energy diplomacy in

Indonesia, China uses state-owned multinational

energy companies to meet its energy supply. Yet,

before that, many Chinese state actors were involved

in waging their interests. It started with the Chinese

President at the time, Jiang Zemin. Seeing that great

potential, the President of China lobbying with

Indonesia through President Megawati. In early 2000,

contact between high-ranking officials and inter-

delegation visits was enhanced and productive. The

intensity of the meeting between the two sides,

especially at the Presidential level shows positive

growth. It should be noted that the most frequent

meeting took place during the administration of

President Megawati Soekarnoputri with a total of 6

visits in 2002. In addition to meetings with top

government officials, China also approached

Indonesia with meetings with special envoys,

colleagues, parliamentary leaders, and journalists. .

The start of energy cooperation talks took place in

2001, but the implementation of the strategy through

the provision of energy-intensive investment funds

occurred during the reign of Soesilo Bambang

Yudhoyono. This is because of China's closeness to

Indonesia against President Yudhoyono while still

serving as Minister of Energy and Resources since the

leadership of President Gus Dur. The result of a

meeting between Chinese President Jiang Zemin and

Indonesian President Megawati Soekarnoputri in

2002 resulted in a joint agreement such as the

establishment of an energy cooperation forum or also

called Indonesia-China Energy Forum (ICEF).

Officially, the ICEF's energy cooperation

relationship began in September 2002. This meeting

was attended not only by state representatives but also

the owners of capital in the energy sector. From

China, representatives attending the forum included

Deputy Prime Minister Huang Ju, Deputy Prime

Minister Li Keqiang, Vice Chairman of National

Development and Reform Commission Zhang

Guabao, China International Trade Promotion

Council, KADIN of China, CNPC representative

Sinochem Corp. , and China National Technical

Import-Export Corp., as well as hundreds of other

Chinese energy companies. From Indonesia,

representatives attending the forum included

President Susilo Bambang Yudhoyono, Vice

President M. Jusuf Kalla, EMR Minister Purnomo

Yusgiatoro, KADIN of Indonesia, Head of BP Migas,

PT Pertamina, PT PLN, Telkom, Director of the State

Asset Commission, Bali Governor, and hundreds of

national energy companies.

3.2.2 State-Firm

Diplomacy between the state and foreign or local

companies involves government officials and senior

officials of these companies. In this context, the

establishment of cooperative relationships between

the Indonesian government and China's multinational

energy companies is done in various ways such as

investment from Chinese companies supported by the

openness and ease of access in the legal basis and

energy policy of the Indonesian government. The

foundation of Indonesian energy law after the

national economic crisis supports the existence of

foreign multinational companies in the oil and gas

and coal mining activities of Indonesia. This has an

impact on the strengthening of capital inflows of

foreign and local investments in the oil and gas and

coal mining sectors, especially China's SOE energy

investment.

Since the signing of the ICEF energy cooperation

forum in 2002, China's energy investment through

state-owned and private companies began to increase.

It is calculated that the upstream oil and gas

cooperation contracts between Indonesia and the

Chinese energy companies formed between 2002 and

2012 is mostly in the form of PSC and JOB-PSC

cooperation contracts. The distribution of PSC

includes 13 cooperation between PSC and 2 JOB-

PSC cooperation. Chinese energy companies using

such contracts are mostly energy SOEs such as

PetroChina, CNOOC, and Sinochem.

The high level of risk and complexity causes the

investment cost in the energy sector to be quite large.

According to data from Bappenas in 2009, the need

for investment costs in the national energy

infrastructure by 2020 for the type of oil energy

ACIR 2018 - Airlangga Conference on International Relations

reaches US$ 17.3 billion (oil refineries and

transmission pipes); for natural gas energy reaches

US $ 9.6 billion (LNG plant, transmission line and

LNG receiving terminal); and for coal energy reaches

US $ 1.34 billion (coal port and coal fire railway).

Until 2012, China has become one of the largest

investment source countries in Indonesia. Overall,

China's total energy investment in Indonesia has

increased annually. It is also expressed by Lepi

Tanadjaja Tarmidi, as FEUI Professor, that China's

investment value in the mining, energy, construction

and other strategic sectors is increasing sharply. In

2007, the total project reached 20 projects which

increased to 113 projects in 2010. The realization of

energy investment value can be seen through

cooperation agreement in ICEF.

Table 1:

Year China’s

companies

Projects Investment

(US$)

2006 1) Chengda

Engineering

Corp, and

Shincuan

Chemical

Industry

Holding

2)Chengda

Engineering

Corp

3) CNOOC

SES Ltd

1) Coal Based

Chemical Plant

2) Power Plant

(2x100MW)

3) Joint Study

South Palung

Aru Area

1) 687

million

2) 170

million

3) 1,5 million

Total: 858,5

million

2008 1) CNOOC

2) The Exim

Bank of

China

3) China

Huadian

Corporation

1) Production

Contract

Madura Strait

2) Buyer's Credit

for PLTU 1 & 2

3) Coal Mine

Agreement

Joint Venture

1) 642

million

2) 775

million

3) 14 million

Total: 1.531

million

2011 1) China

Railways

Group Ltd

1) Coal Train in

Center

Kalimantan and

South Sumatera

1) 2,6 billion

Total: 2,5 billion

Source: ESDM (2006, 2008, 2011), processed by the author

It should be noted on the table above that such

investments are reserved for projects only in the fossil

energy sector of both upstream and downstream

business activities. From the table shows that the total

investment value of Chinese companies increased

from US$ 858.5 million in 2006 to US$ 2.5 billion in

2011. The greater the value of the investment can

indicate that the relationship between China and

Indonesia closer and the existence of China's interests

large to the oil and gas sector of Indonesia.

The contribution of Chinese energy companies,

especially SOE energy through investment and

managers in production activities, proves that China's

energy investment flow helps Indonesia in the

development of the energy sector and provides

welfare to local communities through new jobs. As a

result, national economic growth also increased.

3.2.3 Firm-Firm

After the inauguration of ICEF energy forum

cooperation, many Chinese energy companies both

BUMN and private sector started to enter Indonesia.

In the forum, the first Chinese energy company to

enter Indonesia is China National Petroleum

Company (CNPC) through its subsidiary,

PetroChina. In the same year, another Chinese state-

owned energy company entering Indonesia is China

National Offshore Oil Corporation (CNOOC). Earlier

in 1993, CNOOC had entered Indonesia by

purchasing oil and gas stocks in the Malacca Strait.

Following the formation of energy cooperation

between the two countries, CNOOC bought back one

of the shares of a multinational energy company in

Indonesia, the Spanish-Argentine oil company

Repsol YPF in April.

CNOOC representatives in Indonesia are tasked

to mobilize oil and gas activities such as the

exploration, development and production of

Indonesia's offshore oil and gas. Until 2011, CNOOC

has operated 4 local oil distributions in Indonesia both

onshore and offshore. Among them are Batanghari

block (Jambi), Tangguh Muturi refinery (Papua),

South Aru Palung Block (Maluku), and South

Sumatra South Sumatra refinery (South Sumatra).

This CNOOC control makes it one of the largest

offshore oil source producers in Indonesia. Five years

later, in 2005, state-run Energy Corporation China

Petroleum and Chemical Company (Sinopec)

officially operated in Indonesia. In addition to these

three state-owned energy companies, there are other

Chinese energy companies involved in oil and gas

business activities in Indonesia. Sinochem Company

first entered Indonesia's oil and gas activities in 2008

through the formation of an acquisition agreement in

a joint exploration of two oil and gas blocks with one

of Indonesia's private energy companies, PT Sele

Raya. Within 10 years, China's state-owned energy

company has managed more than 20 oil and gas

refineries in Indonesia. 5 of them have shares of more

than 50%. (Petromindo (2012); Petroleum Report

Indonesia (2005-2006)).

Interaction between Actors in China’s Energy Diplomacy in Indonesia Period 2002-2012

In addition to China's energy SOE's, there are

many China’s private energy companies that form

cooperative relationships with Indonesian energy

companies. Most of the cooperation agreement was

formed from the result of ICEF meeting and

Indonesia-China business forum

4 DISCUSSION

Interaction in the international political economy

system involves not only state actors such as

government representatives as well as political

officials, but also non-state actors such as

multinational corporations. In the context of

international relations, the state is the main actor and

the most important actor because it acts as a driving

force in establishing relationships with other

countries. The increasing role of multinational

companies as non-state actors in a bilateral diplomacy

shows a shift in the global economic structure

characterized by technological developments and

globalization. This has resulted in the state having to

interact not only with other countries but also with

multinational companies in a bilateral diplomacy.

Responding to the development of the global

economy, China as a socialist country controls and

uses state-owned multinationals in the energy sector

as non-state actors that play a role in securing national

energy supplies.

China's energy security is a response to national

economic growth that encourages the formation of an

internationally oriented energy policy. China is

developing a series of diplomatic and administrative

steps to improve energy security by deepening

political and economic ties. The formation of

cooperation is conducted in conjunction with energy-

producing countries through aggressive investments

in oil fields and gas pipelines around the world so that

they can directly control overseas energy reserves.

The Chinese government's idea of strategic energy

security 'is too important to be left’ to global market

forces, which leads them to maintain control of the

sector. Emerging pressures in the global economic

system are then answered by China by relying on

government agencies such as energy ministries and

state-owned energy companies. This is seen in the

reorganization of the Ministry of Energy into three

state-owned multinational giant energy companies,

which include CNPC, Sinopec, and CNOOC.

The dynamics of actor interactions that occur in

China's energy diplomacy cannot be separated from

the role and influence of state actors in it. This is

driven by the situation of the Chinese state as a

socialist country. The socialist state refers to the

communist system of government supported by the

strength of the communist party in China. However,

China adopted a liberal economic system with open

market access to the outside world. The existence of

a liberal economic system for the Chinese state had

an impact on the emergence of market competition,

so China should make state-owned enterprises

oriented multinationals. In the 15th congress of the

Chinese Communist Party, it is stated that state-

owned enterprises with medium and large-scale

enterprises should be restructured as shareholder

companies. This indicates that state-owned energy

companies have become multinational corporations.

The strong influence of Chinese state actors in the

implementation of China's energy diplomacy is seen

in response by Prime Minister Wen Jiabao, as Chair

of the Energy Group, by establishing the State

Council within the government structure to oversee

and regulate the security of national energy growth

and foreign cooperation in the energy sector.

Supervision and support from the Chinese

government in these state-owned enterprises

increases the effectiveness of exploration or

production activities abroad. Government assistance

in this activity is based on the policy of the Five Year

Plan of China in 2001 calling for an international

source of energy. Starting from the meeting between

the President of Indonesia and the President of China,

the establishment of ICEF energy forum can be

realized. Through this forum, the activities of BUMN

energy and Chinese private energy companies in

Indonesia began to increase significantly. Although

large SOEs of Chinese energy such as PetroChina and

Sinopec have started operations in Indonesia since

ICEF was formed, in fact this forum involves more

private companies in energy projects in Indonesia.

In its development, SOE's Chinese energy in

Indonesia is more dominant in the energy market than

the private energy company itself. This proves that

government participation is needed in the energy

business activities undertaken by Chinese energy

companies, especially private companies. The

government's internal support for China's large

energy SOE, particularly in the funding or subsidy

sector, allows the company to control several areas of

Indonesian oil and gas work through the purchase of

shares. This is done by the Chinese government with

the aim of gaining interest in obtaining energy

resources through the operation of its energy SOE.

In the country of Indonesia, the role of energy

SOE is categorized as a business actor or business

competing for profit. In addition, Indonesia is also

interested in obtaining foreign investments,

ACIR 2018 - Airlangga Conference on International Relations

especially in the energy sector. This business activity

cannot move and needs to be supported by the role of

government in it to regulate the flow of activities and

cooperation.

5 CONCLUSIONS

The interaction between actors formed in China's

energy diplomacy in Indonesia takes place in three

forms of diplomacy. Beginning with diplomacy by

state actors, namely China and Indonesia. The

existence of this form of diplomacy is based on the

interests of each country. This diplomacy is

represented by state actors such as the President of

each country, Ministry of EMR, Ministry of Foreign

Affairs, Chamber of Commerce, and others. ICEF can

be regarded as an energy cooperation umbrella

formed between China and Indonesia. Since it was

inaugurated until 2012, ICEF has been held four times

and has produced dozens of energy cooperation.

Energy cooperation agreements formed largely in the

form of business-business cooperation.

Indonesia's interest in energy companies is

supported through the establishment of legal and

policy base that facilitate access to investment in the

energy sector. The government as the energy

policymaker forms several decisions related to

cooperation contracts, ownership of energy working

areas, investments or investments, energy

management processes, corporate taxes, and others.

The existence of legal clarity through resource policy

can attract investors to invest in Indonesia.

Indonesia's lack of funding and technology

resources requires many investors in the sector. The

contribution of Chinese companies in Indonesia's

energy business activities are, among others, the

investment of companies through the funding of

energy projects, drilling of several refineries thereby

increasing Indonesian oil and gas production, and

opening new jobs. China's high contribution makes its

energy companies fast growing in Indonesia.

In terms of firm-firm relations, Energy business

activities involving Chinese companies are largely in

the oil and gas sector by SOE's Chinese energy such

as CNOOC, PetroChina, Sinopec, and Sinochem.

These four large energy companies have had easy

access to Indonesia since the government intervened

through ICEF. Until 2012, China's energy SOE

already has several oil and gas blocks in Indonesia

with different roles. The role of non-state actors

influences the bargaining power of Chinese

companies and countries in conducting various offers

with the Indonesian side. This is because their role

has helped Indonesia in fulfilling its energy interests.

Inter-enterprise energy diplomacy involves not only

SOE China and Indonesian companies but also other

energy companies residing in Indonesia. Based on the

interaction formed through diplomacy between

countries in the forums and diplomacy between the

state and the company, it can show the actors who

have links with SOE Chinese energy in Indonesia.

Finally, based on the previous explanation, it can

be seen also that the form of diplomacy with the most

interaction is in the interaction between companies.

This shows that energy cooperation between

Indonesia and China is dominated by business-deal

forms. However, such interaction will not occur

without inter-state diplomacy and diplomacy between

the state and the enterprise. Chain of relationship This

proves that three forms of diplomacy or triangular

diplomacy are related to each other.

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