Beijing (TDI): China and Indonesia have solidified their economic ties through a series of strategic collaborations aimed at fostering mutual growth and regional stability.
In March 2025, Indonesia announced plans to attract industrial investment to the Batang Special Economic Zone (SEZ) in Central Java, targeting approximately $1 billion in investments.
This initiative is part of the “Two Countries, Twin Parks” (TCTP) program, which aims to promote industrial cooperation and economic development between China and Indonesia.
Additionally, the expansion of the Nongsa Digital Park in Batam is underway, with several data centers planned for development in the coming months.
In April 2025, the United States imposed a 32% tariff on Indonesian exports, prompting a 90-day pause to allow for negotiations. In response, Indonesia’s high-level delegation, including Chief Economic Minister Airlangga Hartarto and Finance Minister Sri Mulyani Indrawati, is set to meet with US officials to seek favorable trade terms and mitigate potential economic impacts.
Amid these challenges, Chinese President Xi Jinping reaffirmed China’s commitment to its partnership with Indonesia.
In a recent conversation with President Prabowo, Xi emphasized the importance of deepening their strategic partnership, especially as both nations commemorate the 75th anniversary of diplomatic relations, according to China’s official Xinhua News Agency.
This dialogue highlights the global strategic significance of their bilateral cooperation and their shared vision for regional stability and prosperity.
China-ASEAN Trade
Trade between China and ASEAN reached $982.34 billion in 2024, reflecting an average annual increase of 7.5 percent over the last decade.
China has remained ASEAN’s largest trading partner for 16 consecutive years, while ASEAN has held the position of China’s top trading partner for the past five years. Indonesia, Vietnam, and Malaysia lead this regional engagement.
Beyond trade, cooperation between China and ASEAN has expanded into areas including digital economy, green development, and infrastructure upgrades.
China has also remained a significant investor in ASEAN markets, with its non-financial outward direct investment in the region rising 12.6 percent year-on-year in 2024.
Read More: China Eyes Closer Trade Ties with Vietnam
In November 2024, during Indonesian President Prabowo Subianto’s visit to Beijing, both nations committed to investments totaling $10 billion, focusing on sectors such as new energy, technology, and food security.
These agreements underscore the complementary nature of their economies and a shared vision for sustainable development.
Looking ahead, China and Indonesia aim to explore new avenues for collaboration, particularly in the digital economy and green development sectors.
China and Indonesia further aim to navigate global economic uncertainties and emerge as resilient partners in the international arena.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
