Indonesian Political, Business & Finance News

Direct Wuhan-Indonesia Route Strengthens Economic Connectivity

| | Source: MEDIA.ALKHAIRAAT.ID Translated from Indonesian | Trade
Direct Wuhan-Indonesia Route Strengthens Economic Connectivity
Image: MEDIA.ALKHAIRAAT.ID

MOROWALI, MAL – On 16 June, the cargo ship “Lanning 19” departed from Yangluo Port, Wuhan, bound for Sambalagi Port, Indonesia, carrying over 10,000 tonnes of essential materials for GEM’s construction projects in Indonesia.

This voyage marks the 81st trip since the direct Wuhan-Indonesia river-to-sea shipping route commenced operations on 30 November 2023, strengthening the connectivity between Wuhan and Indonesian ports. When including both inbound and outbound voyages, the total number of trips on the Yangluo Port (Wuhan)–Indonesia route has exceeded 100. The total transport volume has reached 620,000 tonnes, with a trade value of US$1.4 billion.

These figures account for more than 50 per cent of the trade between Hubei Province and Indonesia, providing more efficient logistics access for Central China to connect directly with Southeast Asia. The direct Indonesia–Yangluo Port (Wuhan) route was initiated by the Hubei Provincial Committee of the Communist Party of China and the Hubei Provincial Government, with support from maritime and port authorities. The route aims to overcome cross-border logistical hurdles previously faced by companies in Hubei.

Previously, most Hubei’s imports and exports had to pass through coastal ports such as Shanghai, Huangpu, or Ningbo, resulting in longer transit times and higher costs. Since the direct route opened, ships can sail from the Yangtze River through the East China Sea and the South China Sea directly to Indonesia. Delivery times have been reduced by more than seven days, while logistics costs can be lowered by more than 300 yuan per tonne. This efficiency enhances the competitiveness of inland Chinese companies in the international market, strengthening Wuhan-Indonesia connectivity.

In addition to Indonesia, ships on this route can also call at the Philippines, Malaysia, and Singapore, providing broader access for Central Chinese companies to enter the Southeast Asian market. The route now maintains a balanced two-way logistics pattern. Xu Kaihua, Chairman of GEM, noted that to date, 240,000 tonnes of nickel resources and other strategic raw materials worth US$1.1 billion have been shipped from Indonesia to Wuhan. Conversely, equipment and materials from Wuhan to Indonesia have reached 380,000 cubic metres, valued at approximately US$300 million.

This efficient logistics pathway ensures the supply of critical resources for China’s new energy industries while simultaneously driving the export of Chinese manufacturing equipment and technology abroad. The opening of this route is closely linked to the involvement of Hubei companies in Indonesia’s industrial development. In recent years, Hubei-based companies, including GEM, have invested in developing high-tech industrial zones based on green nickel resources in Indonesia. This investment drives the transformation of the nickel processing industry towards the new energy sector and supports the global new energy industry supply chain.

Beyond economic and trade cooperation, GEM has also invested nearly US$50 million to establish the Indonesia–China Joint Master and Doctoral Engineering Education Programme, the Bandung Joint Research Laboratory, and the Indonesia–China Excellent Engineer Academy. These programmes have produced 266 local engineers and professionals. This collaboration strengthens people-to-people ties between the two nations and serves as a flagship project of the Belt and Road Initiative (BRI) between Indonesia and China.

As economic ties deepen, the Hubei-Indonesia General Chamber of Commerce was officially established in October 2025. This organisation aims to strengthen the Hubei business community in Indonesia. The cooperation between the Yangtze River and Indonesia encompasses infrastructure connectivity, industrial chain collaboration, and cultural exchange. The regular operation of the direct Wuhan–Indonesia shipping route is not only transforming the economic openness of Central China but also driving China–ASEAN economic and trade cooperation within the framework of the Regional Comprehensive Economic Partnership (RCEP).

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