Indonesia and China Sign New Cooperation to Turn Madura into Investment Magnet

Indonesia and China have further strengthened their economic partnership through the signing of several memoranda of understanding (MoUs) for the development of the Wiraraja Madura Industrial Estate. The agreements, signed in Jakarta on Wednesday, mark a significant step in expanding bilateral investment cooperation and pave the way for the development of a modern industrial zone in Bangkalan Regency, Madura, which is expected to become a new economic growth hub in East Java. The signing ceremony included an MoU between PT Wiraraja Madura International and the Guangzhou Zhanjiang Industrial Transfer Cooperation Park Management Committee, as well as an agreement to join the Guangdong ASEAN Industrial Park International Cooperation Alliance. Coordinating Minister for Economic Affairs Airlangga Hartarto, who witnessed the signing, stated that the government would continue to strengthen cooperation with strategic partner countries to accelerate industrial estate development, create jobs, and establish new economic growth centres across the regions. He noted that the Wiraraja Madura development would complement the existing heavy industry and petrochemical hub in Gresik, creating a balanced industrial landscape. Airlangga also highlighted that the cooperation would enhance the growing economic relationship between Indonesia and China, which is already supported by a bilateral currency swap arrangement worth up to US$50 billion, with the hope of increasing trade using local currencies. The collaboration will see the development of several industrial clusters from China in the Wiraraja Madura Industrial Estate, including chocolate, mattresses, textiles, yarn, and other labour-intensive manufacturing sectors. The project is supported by accelerated permit processing from the Bangkalan Regency Government, the East Java Provincial Government, and relevant licensing agencies to ensure investment realisation can commence promptly and deliver tangible impacts on job creation and economic growth. Chairman of the Indonesian Industrial Estates Association and President Director of Wiraraja Madura Industrial Estate, Akhmad Ma’ruf Maulana, said the estate is designed to be an integrated manufacturing centre supporting industry, logistics, and green energy sectors. The strategic partnership with Guangdong is expected to accelerate new investment inflows and expand opportunities for technology transfer and national industrial capacity building. The Mayor of Zhanjiang, Li Yongyi, stated that Indonesia is an important trading partner for Zhanjiang and expressed hope that the cooperation would become a concrete model for the Two Countries Twin Parks programme through strengthened investment, industrial information exchange, and production capacity development. Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto added that the development would act as a catalyst for new economic growth in East Java and eastern Indonesia, reinforcing the government’s commitment to promoting quality investment and accelerating new industrial estate development. In recent years, economic and trade relations between Zhanjiang and Indonesia have shown a positive growth trend, with trade value reaching 2.461 billion yuan in 2025, an increase of 6.3% from the previous year. Eight Zhanjiang-based companies have invested in 12 projects in Indonesia with a total value of USD370 million, while six Indonesian companies have invested in Zhanjiang.