Indonesia and China Accelerate Preparations for IDC-CEPA Negotiations
Jakarta (ANTARA) - Indonesia and China have agreed to accelerate preparations for the negotiations of the Indonesia-China Comprehensive Economic Partnership Agreement (IDC-COPA) to expand market access and strengthen economic cooperation between the two nations.
This agreement is one of the outcomes of a bilateral meeting between the Deputy for Coordination of Economic and Investment Cooperation at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, and the Director General of International Trade and Economic Affairs at the Ministry of Commerce of China (MOFCOM), Chen Chao, at the MOFCOM office in Beijing.
Edi stated that the CEPA is expected to strengthen the economic relationship between the two countries by prioritising complementary cooperation.
“Currently, it is the right momentum for Indonesia and China to strengthen economic relations through CEPA. We want CEPA to prioritise complementary cooperation, not competition, so that the benefits are felt by both parties,” Edi said in a statement in Jakarta on Wednesday.
He explained that China is Indonesia’s largest destination for non-oil and gas exports. Throughout 2025, the value of Indonesia’s non-oil and gas exports to China reached US$64.82 billion, an increase of 7.11 per cent compared to the previous year.
In terms of investment, China and Hong Kong are among the top three sources of foreign direct investment (FDI) in Indonesia in 2025, with realised investments of US$7.5 billion and US$10.6 billion, respectively.
Despite having strong trade and investment ties, Indonesia and China do not yet have a bilateral trade agreement. Currently, trade cooperation between the two nations operates within the framework of the ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP).
The Chinese side welcomed the proposal. Chen Chao expressed optimism that the CEPA would bring benefits to businesses in both countries.
Moving forward, both parties will work together to map out the scope of cooperation to be included in the agreement.
“We will immediately coordinate with relevant ministries and agencies to follow up on the results of this meeting. We will also involve chambers of commerce and business associations to ensure that CEPA truly addresses the needs of the business world,” said Deputy Edi.
In addition to the CEPA discussions, Indonesia and China also discussed the development of a green economy through the Green Partnership Agreement for Development (GPAD), a Chinese initiative to strengthen green trade and investment, particularly for developing nations.
“For us, implementation is paramount. Green economic cooperation must not stop on paper; it must be actionable and provide added value,” he said.
Both parties also agreed that developing nations need to be more active in the formulation of green economy rules and standards at the global level.
During the meeting, Indonesia also expressed its support for the World Artificial Intelligence Cooperation Organization (WAICO). The agreement to establish the organisation under the United Nations framework was signed by Coordinating Minister for Economic Affairs Airlangga Hartarto along with founding members on 16 July 2026. Indonesia is committed to accelerating the ratification process of the agreement.
Support for WAICO is expected to have a positive impact on Indonesia’s digital economy, particularly in the development of artificial intelligence, digital talent, and fair access to high technology.
On the same occasion, Edi expressed his appreciation to MOFCOM for organising the ‘Seminar on Upskilling Negotiation Skills for Indonesian Officials’ by the Academy for International Business Officials (AIBO). Both parties agreed to strengthen capacity-building cooperation between the Coordinating Ministry for Economic Affairs and MOFCOM.
The Chinese government plans to organise capacity-building programmes for Indonesian civil servants in strategic sectors, such as artificial intelligence (AI), digital trade, technology, negotiation, and other global issues. As a follow-up, the Coordinating Ministry for Economic Affairs, through the Head of the General Affairs and Human Resources Bureau, will propose a Letter of Intent (LoI) for this capacity-building cooperation.