Indonesia and China entered into a series of agreements on 25 May, witnessed by President Prabowo and Chinese Premier Li Qiang during the latter’s state visit to Jakarta, Asia News reported.
Indonesian President Prabowo Subianto has praised several major collaborative initiatives between Indonesia and China, while calling on Chinese businesses to increase their engagement in Indonesia’s economy through job creation and technology transfer.
The Indonesian Coordinating Ministry for Economic Affairs signed an agreement with China’s Ministry of Commerce aimed at enhancing supply chains and industrial cooperation. Another memorandum was concluded with the provincial government of Fujian to link its industrial parks with two Indonesian estates – one in Batang, Central Java, and the other in Bintan, Riau Islands.
The two nations’ central banks formalised a framework to facilitate bilateral transactions using their respective local currencies. Indonesia’s Danantara sovereign wealth fund and the national Chamber of Commerce and Industry (Kadin) also signed accords with their Chinese counterparts to encourage investment and strengthen business ties.
Additional agreements covered a range of sectors, from the export of frozen durians to China, to media cooperation involving Indonesia’s Antara news agency, China Media Group and Xinhua News Agency. The agreements also included commitments to jointly promote tourism and collaborate on healthcare, including efforts to combat tuberculosis.
At another event, President Prabowo expressed his appreciation for significant joint ventures already underway between the two countries – particularly in mineral processing (notably in the nickel sector) and transportation (the Whoosh high-speed rail line connecting Jakarta and Bandung). He urged Chinese enterprises to expand their operations in Indonesia to generate employment and contribute to knowledge exchange.
‘I see their commitment and their willingness to adapt to Indonesia’s conditions. They’re really open to listening to our challenges and interests’, President Prabowo said at a business forum held on 24 May, which was also attended by Premier Li.
The President characterised Indonesia’s partnership with China as ‘very strategic, very important and very promising’, with the potential to contribute meaningfully to peace and stability in the region. He further applauded China’s role in ‘defending the interests of developing countries’ and for its support for Palestine – a cause Indonesia passionately supports.
Four Chinese companies are now in advanced discussions to invest in strategic Indonesian sectors, including electric vehicles, battery technology, data centres and consumer goods, all in collaboration with Danantara. However, President Prabowo did not disclose the names of the firms or the value of the prospective investments.
