Indonesia and China continue to strengthen strategic cooperation
Jakarta (ANTARA) - Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, said economic relations between Indonesia and China continue to grow stronger and more comprehensive through enhanced cooperation in various strategic sectors.
“The government is committed to continuing to open up opportunities and expand mutually beneficial cooperation, not only in trade and investment, but also in strategic sectors such as industry, education, the digital economy and technology,” Haryo said in a statement in Jakarta on Friday.
He said the strengthening of bilateral ties was reflected in a number of cooperation agendas held recently.
These included a visit by the Vice Governor of Fujian Province together with a Chinese business delegation within the framework of the Two Countries Twin Parks (TCTP) initiative, as well as Indonesia’s participation as one of the founding countries of the World Artificial Intelligence Cooperation Organization (WAICO) through the signing of a declaration in Shanghai on 16 July 2026.
In addition, he said educational cooperation continues to be strengthened through collaboration with leading universities in China, such as Tsinghua University, realised through various research activities and seminars at the Bali Special Economic Zone (KEK).
In the automotive sector, Chinese companies such as BYD and Chery have continued to expand their investments in Indonesia and have now entered the top five of the national automotive market share.
Economic relations between the two countries are also underpinned by various trade agreements, including the ASEAN-China Free Trade Area (ACFTA), which has been in force since 2010, and the Regional Comprehensive Economic Partnership (RCEP), which came into effect in 2022.
Based on Indonesian data, the value of bilateral Indonesia-China trade in 2025 reached approximately US$154 billion, while according to Chinese data it stood at around US$160 billion.
Indonesian export commodities include ferroalloys, nickel matte, lignite, coal and palm oil.
China is also one of the largest investors in Indonesia, with a contribution that continues to increase across various strategic sectors.
Coordinating Minister for Economic Affairs Airlangga Hartarto received a courtesy visit from the Chinese business delegation and the Indonesian Ambassador to China at his office in Jakarta on Thursday (23/7).
At that forum, the government encouraged expanded investment in the semiconductor industry, fibre optic infrastructure development, digital application development and data centre infrastructure as part of the national digital economic transformation.
To further drive investment realisation, the Indonesian government is providing various competitive fiscal incentives, including a tax holiday facility of up to 100 per cent depending on the scale and criteria of the investment, tax allowance, investment allowance, and a super tax deduction facility to support increased investment, innovation and human resource development, the statement said.