ASIATODAY.ID, KUALA LUMPUR — Economic cooperation between ASEAN and China has entered a new era.
Representing President Prabowo Subianto, Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto attended the signing of the ASEAN–China Free Trade Area (ACFTA) 3.0 Upgrade at the Kuala Lumpur Convention Centre (KLCC), Malaysia. The event marked one of the key highlights on the final day of the 47th ASEAN Summit, held on Tuesday, October 28, 2025.
The Signing of the ACFTA 3.0 Upgrade Protocol signifies a major step toward a more inclusive, modern, and sustainable economic partnership between ASEAN and the People’s Republic of China. For 16 consecutive years, China has remained ASEAN’s largest trading partner and one of Indonesia’s top trade and investment partners.
In 2024, Indonesia–China trade reached USD136.59 billion, while China’s investment in Indonesia totaled USD8.1 billion, representing a 9% increase compared to the previous year.
ACFTA 3.0: Aligning with Global Economic Shifts
The ACFTA 3.0 upgrade is a comprehensive revision of the free trade agreement that has been in place since 2010. This new version aims to enhance trade liberalization, address modern economic challenges, and keep ASEAN–China cooperation relevant in today’s rapidly evolving global economy.
For Indonesia, ACFTA 3.0 presents a strategic opportunity to boost export competitiveness, attract high-quality investment, and expand access to one of the world’s largest markets.
Malaysian Prime Minister Anwar Ibrahim hailed the ACFTA 3.0 signing as a “spectacular achievement,” calling it one of the major outcomes of the 47th ASEAN Summit chaired by Malaysia.
ACFTA holds a special place in ASEAN’s history as its first free trade agreement with a non-ASEAN country. According to Chinese data, ASEAN–China trade reached Yuan 5.57 trillion (USD785 billion) between January and September 2025 — a 9.6% increase compared to the same period last year.
Expanding Cooperation: Digital Economy, Green Growth, and SMEs
The ACFTA 3.0 Upgrade introduces a broader scope of cooperation, focusing on emerging and strategic sectors, including:
Digital and green economy,
Supply chain connectivity,
SME development,
Consumer protection, and
Fair competition.
These initiatives are expected to strengthen ASEAN–China trade relations, diversify exports, and promote sustainable, value-added industrial growth across the region.
Indonesia to Begin Ratification Process
The Indonesian Government will soon initiate the ratification and policy alignment process to maximize the benefits of the ACFTA 3.0 implementation.
Minister Airlangga emphasized that coordination among relevant ministries, agencies, and the private sector will be crucial to ensure tangible benefits for Indonesia’s economy.
The 28th ASEAN–China Summit, attended by Chinese Premier Li Qiang, reaffirmed the shared commitment to deepen the partnership that has flourished for over two decades amid evolving global challenges. (AT Network)
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