Indonesia commits to China partnership

INDONESIA, 29 JULY 2026 —

Indonesia Reaffirms Strong Ties with China in Investment and Industrial Partnerships

JAKARTA (Reuters) — Indonesia’s Minister of Investment and Downstream Industry, Rosan Roeslani, has underscored the country’s unwavering commitment to deepening its long-term partnership with China, emphasizing collaboration in supply chain development, technology advancement, and regional economic integration.

Speaking to Xinhua in a recent interview, Roeslani highlighted Indonesia’s invitation to Chinese companies not only to invest but to co-develop industrial ecosystems, including mineral downstreaming, electric-vehicle battery supply chains, digital infrastructure, and renewable energy. “The opportunity is substantial, the direction is clear, and our commitment to long-term partnership remains strong,” he stated. “China is a cornerstone partner, and we continue to diversify our relationships to stay resilient.”

China has been Indonesia’s largest trading partner for 13 consecutive years and ranks among its top three sources of foreign direct investment. The bilateral relationship has evolved beyond raw commodity trade into industrial integration, with both nations now focusing on advanced manufacturing and future industries. Roeslani noted that cooperation between the two countries is enhancing regional supply-chain resilience as global firms diversify production and sourcing.

A key initiative under this partnership is the "Two Countries, Twin Parks" program, framed within China’s Belt and Road Initiative. This project aims to create an integrated industrial ecosystem, linking investment, manufacturing, logistics, skills development, and market access. The initiative is transitioning from concept to implementation, offering opportunities for companies of all sizes to engage in regional value chains.

Indonesia is positioning itself as a hub for digital transformation, with Roeslani pointing to the rising demand for data centers, cloud infrastructure, and advanced electronics driven by artificial intelligence. The country’s advantages—including a large digital market, renewable energy potential, competitive industrial zones, and its strategic location within ASEAN—make it well-suited to participate in this shift. Roeslani explicitly invited Chinese investors to contribute to Indonesia’s digital transition and AI industry growth.

Since its implementation in 2023, the Regional Comprehensive Economic Partnership (RCEP) has strengthened regional integration by improving market access, streamlining customs procedures, and establishing common rules of origin. These measures have enhanced supply-chain connectivity and drawn Indonesian firms deeper into regional value chains.

Looking ahead, Indonesia views the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade, signed in October 2025, as a critical next step. The upgraded agreement is expected to deepen cooperation in digital economy, green economy, supply-chain resilience, standards, and support for small and medium-sized enterprises. “For Indonesia, it is an opportunity to attract quality investment, lift industrial competitiveness, and support inclusive, sustainable growth,” Roeslani said.

The evolving economic ties between Indonesia and China reflect broader trends in Southeast Asia, where industrialization, digital transformation, and supply-chain diversification are reshaping trade dynamics. As both nations advance their strategic partnerships, the focus remains on creating mutually beneficial, technology-driven collaborations that align with regional economic priorities.

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