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Home Indonesia

Indonesia, China getting closer

WNAM: by WNAM:
January 2, 2024
in Indonesia
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Indonesia, China getting closer
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WNAM Monitoring: Indonesia and China enjoyed a closer bilateral relationship in 2023, with several high-ranking Indonesian officials visiting China, mostly in the second half of last year.

On July 27-28, 2023, President Joko Widodo (Jokowi) held a bilateral meeting with Chinese President Xi Jinping in Chengdu, Sichuan Province.

The bilateral meeting took an hour and was followed by dinner for 2.5 hours. The two leaders agreed to continue to encourage Chinese investment in Indonesia.

President Jokowi sought China’s support for the development of industrial estates in North Kalimantan and cooperation in the Nusantara Capital City.

Eight memoranda of understanding (MoUs) were produced during the meeting.

The MoUs included the commitment to increasing the exports of porang flour products, tabasheer powder, and edible bird’s nests; strengthening cooperation in vaccine production, disease diagnostic tools, and health information system management; and planning for the new capital city.

Furthermore, the MoUs included the “Two Countries, Twin Park” under the synergy of the Global Maritime Fulcrum and the Belt and Road Initiative (BRI), language education, and other economic and technical cooperation.

China is Indonesia’s largest trading partner, with a trade value reaching more than US$133 billion in 2022.
Meanwhile, in the investment sector, China is the second-largest investor origin country for Indonesia, with a value of US$8.2 billion in 2022.
Although the value is already huge, Indonesian Foreign Minister Retno Marsudi stated that the potential is still greater and will continue to be improved, for instance, in the fields of green energy, fiberglass, health, and petrochemicals.

China, as the country with the largest economy in Asia, becomes a magnet for countries in the region, including Indonesia.

The International Monetary Fund projects China’s economy to grow 5.4 percent in 2023 and 4.6 percent in 2024.

The Chinese government also remains confident that its economic growth can have a positive impact on countries around the world.

“China is widely considered the biggest driver for the world economy. China has a hyper-scale market with the biggest potential in the world,” China’s Foreign Ministry spokesperson, Wang Wenbin, stated.

Both Indonesia and China are two countries that need one another, so it is natural that cooperation between them is mutually beneficial and provides benefits for the people of both nations.

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