Smart Technology - Niaga.Asia
Indonesia is actively encouraging foreign investment due to its significant multiplier effect on the national economy. These investments are projected to expand job opportunities for the public and increase foreign exchange earnings through production outputs.
This was stated by Coordinating Minister for Economic Affairs Airlangga Hartarto during discussions with a delegation from Hebei Province, People’s Republic of China (PRC), led by Deputy Governor Zhao Chenxin, in Jakarta on Tuesday (26/05).
Hebei Province has experienced rapid growth in industries based on smart technology and AI development. The meeting was a key opportunity to deepen economic cooperation, particularly in strengthening industrial supply chains and transformation through smart technology advancements.
During the discussions, Coordinating Minister Airlangga highlighted the significance of the two nations’ economic relationship, noting that Indonesia’s trade volume with China has now tripled compared to total trade with Europe and the United States.
“This forms a strong foundation for strategic partnerships, particularly in supporting the success of the government’s national downstreaming programme, such as in the nickel and bauxite sectors,” he said.
Minister Airlangga also expressed appreciation for China’s role as a strategic partner in developing downstreaming products.
As part of efforts to accelerate strategic economic zones to capture future growth opportunities, Coordinating Minister Airlangga outlined Indonesia’s readiness to provide several strategically optimised zones for high-tech industries and smart technology development, including Artificial Intelligence (AI).
Specifically, he highlighted the strategic potential of eastern Indonesia, particularly North Sulawesi, as a gateway for international data connectivity.
“The location is highly prospective for data centre development due to its geographical advantage of direct connectivity to global transmission networks heading to the United States, ensuring efficient cross-border data access.”
Deputy Governor Zhao Chenxin responded positively, expressing appreciation for the Coordinating Ministry for Economic Affairs’ strategic steps in creating a conducive investment climate through existing policies.
He reaffirmed Hebei Province’s commitment to encouraging local entrepreneurs to expand their presence in Indonesia.
The Hebei government welcomed Minister Airlangga’s input and will promptly communicate it to Chinese business communities for concrete follow-up as future investment considerations.
The meeting concluded with an agreement to maintain close communication, including future discussions on logistics efficiency through shipping line development. Coordinating Minister Airlangga also expressed interest in discussing China’s experience in managing shipping line issues.