Indonesia's commitment to long-term partnership with China remains strong, says investment minister

INDONESIA, 29 JULY 2026 —

Indonesia's Minister of Investment and Downstream Industry, Rosan Roeslani, has reaffirmed the country's commitment to a long-term partnership with China, inviting Chinese companies to invest and build together with Indonesia to create stronger supply chains and develop talent. In a recent interview, Rosan emphasized that the opportunity for cooperation is substantial and the direction is clear, with China being a cornerstone partner for Indonesia's economic growth.

Indonesia and China have a long history of economic cooperation, with China being Indonesia's largest trading partner for thirteen consecutive years and consistently among its top three sources of foreign direct investment. The bilateral relationship has evolved from raw commodities to genuine industrial integration in areas such as mineral downstreaming, electric-vehicle battery supply chain, digital infrastructure, and renewable energy. This cooperation has contributed to supply-chain resilience in the region, with both countries having the opportunity to build more balanced, technology-oriented partnerships in advanced manufacturing, digital infrastructure, and future industries.

The current development in Indonesia-China economic cooperation is focused on creating an integrated industrial ecosystem through the "Two countries, Twin parks" initiative under the Belt and Road Initiative framework. This initiative connects investment, manufacturing, logistics, skills development, and market access across both countries, making it easier for companies of all sizes to participate in regional value chains. Additionally, Indonesia is well-positioned to participate in the digital transformation and artificial intelligence (AI) industry development, with its large digital market, abundant renewable-energy potential, competitive industrial zones, and strategic location at the heart of ASEAN.

The economic partnership between Indonesia and China is expected to have a significant impact on the Malaysian market, particularly in terms of trade and investment. As Indonesia and China deepen their cooperation, Malaysian companies may face increased competition in the regional market. However, the strengthened regional integration through improved market access, streamlined customs procedures, and a common set of rules of origin under the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade may also provide opportunities for Malaysian companies to participate in regional value chains.

In terms of sector-specific developments, the cooperation between Indonesia and China is expected to drive growth in areas such as digital infrastructure, renewable energy, and advanced manufacturing. Indonesian companies, such as those in the electric-vehicle battery supply chain, may benefit from the partnership, while Chinese companies may increase their investment in Indonesia's digital transition and AI industry development. Details on specific company investments are not yet available, but the Indonesian government has welcomed Chinese investors to participate in the country's digital transition and AI industry development.

Looking ahead, the outlook for Indonesia-China economic cooperation is positive, with the potential for increased trade and investment between the two countries. The ACFTA 3.0 Upgrade, signed in October 2025, is expected to deepen ASEAN-China cooperation in areas such as the digital economy, green economy, supply-chain resilience, standards, and small and medium-sized enterprises. For Indonesia, this partnership is an opportunity to attract quality investment, lift industrial competitiveness, and support inclusive, sustainable growth. As the regional economic landscape continues to evolve, the partnership between Indonesia and China is likely to play a significant role in shaping the future of trade and investment in the ASEAN region.

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