Indonesia Bolsters Economic Ties with China, Prioritising AI and Downstreaming
JAKARTA, 26 May – Indonesia will deepen economic cooperation with China. The commitment was revealed by Coordinating Minister for Economic Affairs Airlangga Hartarto during a meeting with a delegation from Hebei Province, People’s Republic of China, led by Deputy Governor Zhao Chenxin in Jakarta on Tuesday, 26 May.
In a statement, Airlangga explained that the meeting marks a significant step in strengthening bilateral economic collaboration, particularly in industrial supply chains and smart technology development.
He added that Indonesia-China economic relations play a strategic role, noting that trade volume between the two countries has now reached approximately three times that of Indonesia’s total trade with Europe and the United States.
This cooperation is also seen as a crucial foundation for supporting the national downstreaming programme, particularly in mineral sectors such as nickel and bauxite. Airlangga expressed appreciation for China’s role as a key partner in developing Indonesia’s downstreaming industry.
Furthermore, the Indonesian government is offering the development of strategic economic zones focused on high-tech industries, including artificial intelligence (AI) and smart technology. These zones are being prepared to attract global investment and strengthen Indonesia’s digital economic transformation.
Specifically, Airlangga highlighted the potential of Eastern Indonesia, particularly North Sulawesi, as an international data connectivity gateway. The region is strategically positioned for data centre development due to its direct connection to global transmission networks heading to the United States, thereby supporting efficient cross-border data flows.
In response, Hebei Deputy Governor Zhao Chenxin affirmed the province’s commitment to encouraging local businesses to expand investments in Indonesia, particularly in technology and AI-based industries.
Hebei is known for its rapid development in smart technology and artificial intelligence industries. The provincial government stated it will communicate these cooperation opportunities to Chinese business communities for concrete follow-up.