Indonesia Accelerates Rp37.1 Trillion Investment Realisation, Batang as 'The New Shenzhen'

The Indonesian government and the government of Fujian Province, China, have agreed to accelerate the implementation of the Two Countries Twin Parks (TCTP) cooperation through the drafting of a more concrete list of priority projects and sectors. This move is expected to become a new catalyst for Chinese investment, particularly into the Batang Industropolis Special Economic Zone (KEK), which is projected to become ‘Indonesia’s Shenzhen’. The agreement emerged during a meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Fujian Vice Governor Zhao Zenglian in Jakarta on Tuesday (21/7/2026). According to Airlangga, the government wants to accelerate the realisation of strategic projects within the TCTP framework to strengthen Indonesia-China economic relations through increased investment, trade, and industrial development. ‘In line with the direction of President Prabowo Subianto, the development of the Batang Industropolis KEK, which was inaugurated on 20 March 2025, as Indonesia’s Shenzhen, is expected to be realised soon. One way is through the acceleration of various concrete projects within the TCTP programme framework,’ said Airlangga. Airlangga also appreciated the support of the Fujian Provincial Government, which has been one of Indonesia’s main partners in developing industrial and investment cooperation. Under the TCTP scheme, Indonesia and China have built various collaborations between industrial estates, local governments, and business actors from both countries. To date, 30 memoranda of understanding (MoUs) have been signed with an estimated investment value reaching around Rp37.1 trillion. The government hopes that the cooperation will not stop at the signing stage but will immediately proceed to the project implementation phase, capable of creating new economic activity in both countries. Meanwhile, Fujian Vice Governor Zhao Zenglian conveyed his government’s commitment to accelerating the realisation of the TCTP programme. He stated that strengthening coordination among stakeholders, identifying priority projects, and formulating follow-up actions are key to ensuring the cooperation runs effectively. ‘We are ready to work together with the Indonesian Government to promote the development of areas within the TCTP programme and are committed to identifying priority sectors that have the potential to be developed jointly with Fujian Province,’ said Zhao. In addition to developing investment projects, both countries are also continuously strengthening the TCTP supporting ecosystem through trade facilitation, customs coordination, improving the flow of goods, and expanding market access. These measures are expected to create a more competitive business climate while increasing investment attractiveness in the areas included in the TCTP programme. Both parties also affirmed their commitment to accelerating the formulation of the TCTP implementation master plan as a guide for future cooperation development. At the close of the meeting, Zhao extended an official invitation to Airlangga to attend the China International Fair for Investment and Trade (CIFIT) 2026, which will be held in Xiamen on 8 September 2026. CIFIT is one of the world’s largest investment exhibitions focusing on international investment and trade promotion. The TCTP cooperation is one of the flagship projects of Indonesia-China economic relations, expected to attract manufacturing investment, strengthen industrial supply chains, and accelerate the transformation of national strategic industrial areas, including the Batang Industropolis KEK, which is being prepared to become a new economic growth centre in Indonesia.