Indonesia and China Strengthen Smart Technology Cooperation

The Indonesian government and China’s Hebei Province are deepening cooperation on industrial supply chains and transformation through smart technology development. The discussion took place during a meeting between Economic Coordination Minister Airlangga Hartarto and a Hebei Province delegation led by Deputy Governor Zhao Chenxin. In his statement in Jakarta on Friday, Airlangga emphasised the significance of the two countries’ economic relations, with Indonesia’s trade volume with China now three times that of its total trade with Europe and the United States. He underscored that Indonesia is actively encouraging investment due to its significant multiplier effect on the national economy. ‘This investment is projected to expand job opportunities for the public and increase national foreign exchange earnings through production outputs,’ Airlangga said. This forms a strong foundation for strategic partnerships, particularly in supporting the success of the government’s national downstreaming program, such as in the nickel and bauxite sectors. He also expressed appreciation for China’s role as a strategic partner in developing downstream products. As part of accelerating strategic economic zones to capitalise on future growth opportunities, Airlangga outlined Indonesia’s readiness to provide strategic economic zones optimised for high-tech industries and smart technology development, including artificial intelligence (AI). Specifically, Airlangga highlighted the strategic potential of Eastern Indonesia, particularly North Sulawesi, as an international data connectivity gateway. The location is highly promising for data centre development due to its geographical advantage of direct global transmission links to the US, ensuring efficient cross-border data access. Deputy Governor Zhao Chenxin responded positively, expressing appreciation for the Economic Coordination Ministry’s strategic moves to create a conducive investment climate through existing policies. Zhao affirmed Hebei Province’s commitment to encouraging local businesses to expand in Indonesia. Hebei Province has made rapid progress in smart technology and AI-based industries. The Hebei government welcomed Airlangga’s input and will promptly communicate it to Chinese business communities for concrete follow-up as investment considerations. The meeting concluded with an agreement to maintain intensive communication, including future discussions on logistics efficiency through shipping line development. Airlangga also expressed interest in discussing China’s experience in managing shipping line issues.