Indonesia and China Discuss New Investment Worth US$2.5 Billion
The Indonesian and Chinese governments further strengthened economic cooperation through a bilateral meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Chinese Minister of Trade Wang Wentao in Shanghai. One outcome of the discussion was the acceleration of new investment realization worth approximately US$2.5 billion, or approximately IDR 40 trillion.
During the meeting, the two countries evaluated the implementation of the memorandum of understanding (MoU) signed between the Indonesian Coordinating Ministry for Economic Affairs and the Chinese Ministry of Commerce (MOFCOM). The evaluation covered cooperation in the industrial, trade, investment, and digital economy sectors.
Airlangga stated that the development of the “two countries twin park” concept was one of the focuses of the discussion. This scheme is designed to strengthen connectivity between Indonesian and Chinese industrial zones, with the Batang Special Economic Zone (SEZ) projected as a hub for Chinese industrial investment.
“Industrial development in the Batang SEZ is expected to continue to accelerate,” Airlangga said in an online press conference from Shanghai.
However, Airlangga revealed that several obstacles remain for Chinese investors, particularly companies operating outside the special economic zones. According to him, business actors hope to receive incentives equivalent to the facilities enjoyed by companies within SEZs.
“There are indeed several challenges, especially for Chinese companies operating outside SEZs. They also want to receive facilities at least equivalent to those provided in SEZs,” he said.
In addition to discussing industrial zone development, the two countries also reviewed the progress of investment realization from various existing agreements. This cooperation covers the manufacturing, trade, and digital economy development sectors.
“Indonesia and China have signed an MoU with the Ministry of Trade (MOFCOM). We are evaluating industrial and trade cooperation, including cooperation in the digital sector,” said Airlangga.
Airlangga added that economic relations between Indonesia and China continue to show a positive trend. The value of trade between the two countries reached approximately US$160 billion last year, making China Indonesia’s largest trading partner.
On the investment side, realized Foreign Direct Investment (FDI) from China was recorded at around US$7 billion. Combined with US$10 billion in investment coming in through Hong Kong, the total investment from the two regions reached approximately US$17 billion.
“This is truly a strategic country for Indonesia,” Airlangga emphasized.
The government hopes that this strengthened cooperation will not only increase investment flows but also encourage national industrial growth, expand employment opportunities, and accelerate the development of strategic economic zones in various regions.
