Indonesia Partners with China to Develop First Economic Hub on Madura Island
The Indonesian government has expanded its national economic corridor by promoting the development of the first industrial estate on Madura Island, the Wiraraja Industrial Estate in Bangkalan. Through the Two Countries Twin Parks (TCTP) cooperation scheme with China, this integrated project is designed not only as a manufacturing and logistics hub but is also supported by strengthened bilateral monetary cooperation, including a Bilateral Currency Swap Arrangement (BCSA) worth up to USD 50 billion to mitigate global market volatility risks.
The partnership was cemented through the signing of a Memorandum of Understanding (MoU) between PT Wiraraja Madura International and the Guangzhou Zhanjiang Industrial Transfer Cooperation Park Management Committee, alongside an Agreement on Joining the Guangdong ASEAN Industrial Park International Cooperation Alliance with Wiraraja Madura Industrial Estate.
Coordinating Minister for Economic Affairs Airlangga Hartarto, who witnessed the signing, stated that the government will continue to strengthen cooperation with strategic partner countries to accelerate industrial estate development, create jobs, and establish new economic growth centres across regions. “We have a Two Countries Twin Parks (TCTP) programme that we will continue to push. This area in Madura will also be a heavy industry zone for Indonesia, petrochemicals (Gresik). So, with the Bangkalan Industrial Estate, it will become balanced,” Airlangga said at the Strategic Cooperation Framework Agreement signing in Jakarta.
Airlangga added that the development of the Wiraraja Industrial Estate would complement the growing economic relationship between Indonesia and China, both in terms of investment and bilateral trade. He noted that the existing Bilateral Currency Swap Arrangement, valued at up to USD 50 billion, would allow trade to be conducted using respective currencies, reducing dependence on other currencies.
The project’s development is also supported by the acceleration of licensing processes by the Bangkalan Regency Government, the East Java Provincial Government, and relevant licensing agencies, ensuring that investment realisation can commence promptly and deliver tangible impacts on job creation and economic growth in Madura and East Java.
Akhmad Ma’ruf Maulana, Chairman of the Indonesian Industrial Estates Association (HKI) and President Director of Wiraraja Madura Industrial Estate, said the estate is designed to be an integrated manufacturing centre supporting the industrial, logistics, and environmentally friendly energy sectors. The presence of a strategic partner from Guangdong is expected to accelerate new investment inflows and expand opportunities for technology transfer and national industrial capacity building.
Li Yongyi, Mayor of Zhanjiang, China, highlighted Indonesia as an important trading partner for Zhanjiang. He expressed hope that the collaboration between the Guangdong (Fenyong) ASEAN Industrial Park and Wiraraja Madura Industrial Estate would become a concrete model for implementing the TCTP through strengthened investment, industrial information exchange, and production capacity development for both countries.
Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, added that the development of the Wiraraja Madura Industrial Estate will serve as a catalyst for new economic growth in East Java. In recent years, economic and trade cooperation between Zhanjiang and Indonesia has shown a positive growth trend, reflected in increasing trade and investment values. In 2025, the trade value between Zhanjiang and Indonesia reached 2.461 billion yuan, an increase of 6.3 percent compared to the previous year. To date, eight companies from Zhanjiang have realised investments in Indonesia through 12 projects with a total value of USD 370 million, while six Indonesian companies have invested in Zhanjiang.