Government Seeks Closer Economic Ties with China to Reduce US$10 Billion Trade Deficit
Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to pursue stronger economic cooperation with China as part of a strategy to reduce the still-sizeable non-oil and gas trade deficit. Airlangga stated that Indonesia's non-oil and gas trade deficit with China stands at approximately US$10 billion, or around Rp163.2 trillion (at an exchange rate of Rp16,328 per dollar).
"Our total difference with them (China) is around 10 billion," Airlangga said at the Presidential Palace in Jakarta on Sunday (25/5/2025).
President Prabowo Subianto and Chinese Prime Minister Li Qiang held a bilateral meeting at the Merdeka Palace in Jakarta on Sunday (25/5/2025). The meeting was aimed at strengthening the strategic partnership between the two nations.
Airlangga said the government hopes China will increase investment in Indonesia across several of President Prabowo's flagship programmes, including the Free Nutritious Meals (MBG) programme, the energy resilience programme, and the Giant Sea Wall project, in order to reduce the trade balance deficit with China.
"We certainly hope for higher levels of investment. The President spoke earlier about flagship programmes including the free nutritious meals programme, energy self-sufficiency, and going forward, strategic projects such as the Giant Sea Wall are also being prepared," he said.
During the meeting between Prabowo and PM Li Qiang, bilateral agreements were reached through the signing of memoranda of understanding (MoUs) across various economic sectors, including digital, industrial, and other economic sectors.
"The MoUs also extend the Two Countries Twin Park arrangement," he said.
Airlangga explained that the Two Countries Twin Park programme would encompass three industrial zones: the Batang Industropolis Special Economic Zone (SEZ), an industrial zone in Bintan, and an industrial zone in Fujian Province, China. He said the cooperation would bring investment to Indonesia and strengthen supply chains between the two countries.
"Investment will certainly come in. There is also a commitment to strengthen the supply chain between the two nations," he said.
Furthermore, Airlangga said that during the development phase, the Batang SEZ is expected to attract US$3 billion in investment. Other areas are still in the exploratory stage.
"The hope is that Batang can truly employ more than 100,000 people," he said.
"Our total difference with them (China) is around 10 billion," Airlangga said at the Presidential Palace in Jakarta on Sunday (25/5/2025).
President Prabowo Subianto and Chinese Prime Minister Li Qiang held a bilateral meeting at the Merdeka Palace in Jakarta on Sunday (25/5/2025). The meeting was aimed at strengthening the strategic partnership between the two nations.
Airlangga said the government hopes China will increase investment in Indonesia across several of President Prabowo's flagship programmes, including the Free Nutritious Meals (MBG) programme, the energy resilience programme, and the Giant Sea Wall project, in order to reduce the trade balance deficit with China.
"We certainly hope for higher levels of investment. The President spoke earlier about flagship programmes including the free nutritious meals programme, energy self-sufficiency, and going forward, strategic projects such as the Giant Sea Wall are also being prepared," he said.
During the meeting between Prabowo and PM Li Qiang, bilateral agreements were reached through the signing of memoranda of understanding (MoUs) across various economic sectors, including digital, industrial, and other economic sectors.
"The MoUs also extend the Two Countries Twin Park arrangement," he said.
Airlangga explained that the Two Countries Twin Park programme would encompass three industrial zones: the Batang Industropolis Special Economic Zone (SEZ), an industrial zone in Bintan, and an industrial zone in Fujian Province, China. He said the cooperation would bring investment to Indonesia and strengthen supply chains between the two countries.
"Investment will certainly come in. There is also a commitment to strengthen the supply chain between the two nations," he said.
Furthermore, Airlangga said that during the development phase, the Batang SEZ is expected to attract US$3 billion in investment. Other areas are still in the exploratory stage.
"The hope is that Batang can truly employ more than 100,000 people," he said.