Indonesian Political, Business & Finance News

Indonesia's Long-Term Partnership Commitment with China Remains Strong

| Source: ANTARA_ID Translated from Indonesian | Investment
Indonesia's Long-Term Partnership Commitment with China Remains Strong
Image: ANTARA_ID

Indonesia is inviting Chinese companies not only to invest in the country but also to build together with Indonesia — creating stronger supply chains, developing talent, advancing technology, and serving regional and global markets from here, said Indonesia’s Minister of Investment and Downstream Industry, Rosan Roeslani. “The opportunities are enormous, the direction is clear, and our commitment to a long-term partnership remains strong,” Rosan told Xinhua in a recent interview. “China is a key partner, and we continue to diversify partnerships to remain resilient.”

China is one of Indonesia’s main strategic partners in accelerating industrialisation and realising economic growth aspirations, Rosan said, adding that China has been Indonesia’s largest trading partner for 13 consecutive years and consistently ranks among the top three sources of foreign direct investment (FDI) for Indonesia. According to Rosan, the bilateral relationship between the two countries has evolved from mere trade in raw commodities into genuine industrial integration, encompassing mineral downstreaming, electric vehicle (EV) battery supply chains, digital infrastructure, and renewable energy.

“Our cooperation also contributes to supply chain resilience in the region. As global companies diversify production and sourcing, Indonesia and China have the opportunity to build a more balanced, technology-oriented partnership in advanced manufacturing, digital infrastructure, and future industries,” he said. The “Two Countries, Twin Parks” (TCTP) initiative, under the Belt and Road Initiative (BRI) framework, continues to progress from concept to tangible implementation. The initiative builds integrated industrial ecosystems, rather than just a collection of standalone projects, Rosan said, adding that it also connects investment, manufacturing, logistics, skills development, and market access in both countries, making it easier for companies of all scales to participate in regional value chains.

Rosan noted that artificial intelligence (AI) is creating unprecedented demand for data centres, cloud infrastructure, advanced electronics, and reliable electricity supply. Indonesia is well-positioned to participate in this transformation due to its large digital market, abundant renewable energy potential, competitive industrial zones, and strategic location at the heart of ASEAN, Rosan explained, welcoming Chinese investors to participate in Indonesia’s digital transition and AI industry development. Since coming into force for Indonesia in 2023, the Regional Comprehensive Economic Partnership (RCEP) has strengthened regional integration through improved market access, simplified customs procedures, and uniform rules of origin, thereby enhancing supply chain connectivity while encouraging the engagement of Indonesian companies in regional value chains, Rosan stated.

“We view the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade, signed in October 2025, as the next natural step. The agreement deepens ASEAN-China cooperation in areas that will define the coming decades, namely the digital economy, green economy, supply chain resilience, standards, and small and medium enterprises,” he said. “For Indonesia, this is an opportunity to attract quality investment, enhance industrial competitiveness, and support inclusive and sustainable growth,” Rosan concluded.

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