May 27, 2025
JAKARTA – Indonesia and China signed multiple agreements on Sunday, witnessed by President Prabowo Subianto and Chinese Premier Li Qiang during the latter’s official visit to Jakarta.
The Office of the Coordinating Economic Minister inked a pact with China’s Commerce Ministry to strengthen supply chains and cooperation in the industrial sector. Another agreement was signed with the provincial government of Fujian to connect its industrial parks with two estates in Batang, Central Java and Bintan, Riau Islands.
The central banks of both countries established a framework for conducting bilateral transactions in local currencies.
State asset fund Danantara and the Indonesian Chamber of Commerce and Industry (Kadin) signed deals with their Chinese counterparts to boost investment and business ties.
“President Prabowo also discussed several priority programs, including the free nutritious meal program, energy sustainability and long-term plans such as the proposed giant seawall [along Java’s northern coast],” Coordinating Economic Minister Airlangga Hartarto said on Sunday, as quoted by Kompas.
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Other agreements include the export of frozen durian to China, media partnerships between Indonesia’s national news agency Antara and China Media Group and Xinhua News Agency, as well as collaborations in tourism and health care, such as joint efforts in tuberculosis treatment.
In a separate deal, the National Economic Council (DEN) and China’s National Development and Reform Commission (NDRC) agreed to collaborate on economic development policy.
On a separate occasion, President Prabowo praised several major joint projects between Indonesia and China, including mineral downstreaming, particularly in the nickel sector, and the Whoosh high-speed railway between Jakarta and Bandung. He urged more Chinese companies to deepen their involvement in Indonesia’s economy by creating jobs and sharing technology.
“I see their commitment and their willingness to adapt to Indonesia’s conditions. They’re really open to listening to our challenges and interests,” Prabowo said during a business leaders’ event on Saturday, at which Li was present.
The President described Indonesia’s relationship with China as “very strategic, very important and very promising,” with the potential to shape regional peace and stability.
He also praised China for “defending the interests of developing countries” and supporting Palestine, a cause Indonesia fervently backs.
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Pandu Sjahrir, chief investment officer at Danantara, said on Saturday that additional Indonesia-China investment deals are in the pipeline and will be announced in the coming days or weeks.
He noted that four Chinese companies are currently in advanced talks to invest in Indonesia across key sectors, including electric vehicles, batteries, data centers and consumer goods, in partnership with Danantara. However, he declined to disclose the names of the firms or the size of the investments.
Meanwhile, Deputy Agriculture Minister Sudaryono said several Chinese investors had expressed interest in building a milk processing plant and cattle farm in Indonesia. At the same time, the government is pushing to expand exports of poultry products and edible bird’s nests to China.
“We’re still in the negotiation phase. The two countries enjoy strong relations, so [I’m optimistic] the process will go smoothly,” Sudaryono said on Saturday, as quoted by Bisnis.com.