ASIATODAY.ID, JAKARTA — China’s economic expansion in Indonesia continues to intensify, becoming increasingly structured and wide-ranging.
Through strengthened trade ties, large-scale investments, and deepening industrial integration, China is solidifying its presence across Indonesia’s strategic sectors—from basic metals to artificial intelligence.
The Indonesian government has reaffirmed that its bilateral relationship with China remains one of its most comprehensive and enduring strategic partnerships. In practice, this cooperation has driven massive trade flows, sustained capital inflows, and the integration of cross-border industrial supply chains.
A key vehicle of this expansion is the China Chamber of Commerce in Indonesia (CCCI). Over the past two decades, CCCI has evolved into a central conduit between the Indonesian government and Chinese corporations, facilitating China’s growing business penetration into Indonesia’s domestic market.
This expanding economic footprint was further reinforced by President Prabowo Subianto’s state visit to the People’s Republic of China in November 2024, widely seen as a political milestone that elevated bilateral ties to a new strategic level.
Coordinating Minister for Economic Affairs Airlangga Hartarto described the partnership as a convergence of two major global markets.
“With a population of 1.4 billion and a GDP of USD 17.8 trillion, China is the world’s second-largest economy. Indonesia, with 285 million people and a GDP of USD 1.4 trillion, is also a major market. This collaboration creates vast expansion opportunities for companies from both countries,” Airlangga said during his keynote address at the 20th Anniversary Celebration of the China Chamber of Commerce in Indonesia on Friday, January 9, 2026.
China is currently Indonesia’s largest trading partner, with bilateral trade reaching USD 135.2 billion in 2024—a figure that underscores China’s dominant role in Indonesia’s external trade structure.
China’s industrial expansion is also being driven through the Two Parks Twin Countries (TPTC) initiative, a strategic framework designed to integrate industrial zones in Indonesia and China, strengthen investment flows, and embed both economies more deeply into global supply chains.
The TPTC Memorandum of Understanding, first launched in 2021, was renewed in May 2025 through an agreement signed by Minister Airlangga and China’s Minister of Commerce Wang Wentao, witnessed directly by President Prabowo Subianto and Chinese Premier Li Qiang—a clear signal of strong political backing at the highest level.
As a concrete follow-up, companies from China’s Fujian Province, together with Indonesian partners, signed 16 project proposals valued at IDR 36.4 trillion, or approximately USD 2.19 billion. These projects span strategic sectors including basic metals, meat and seafood processing, textiles, tea, furniture, drones, batteries, and artificial intelligence, marking China’s shift from traditional manufacturing into advanced technology investments in Indonesia.
“Indonesia welcomes deeper collaboration in infrastructure, logistics, downstream industries, manufacturing, renewable energy, the digital economy, AI, quantum computing, food security, healthcare, and human capital development,” Airlangga added.
On the investment front, the Indonesian government reiterated its commitment to improving the business climate through regulatory reforms, accelerated infrastructure development, and policy consistency.
A dedicated task force has been established to fast-track national strategic projects, ensuring that long-term investments—including those from China—can be realized efficiently.
The event was attended by senior officials, including the Chair of the National Economic Council, the Minister of Public Works, the Minister of Transmigration, the Chinese Ambassador to Indonesia, the Vice Chair of the National Economic Council, the Deputy Minister for Investment and Downstream Industries, the Chair of CCCI, and senior officials from the Coordinating Ministry for Economic Affairs. (AT Network)
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