China and Indonesia signed agreements worth US$10 billion at the Indonesia-China Business Forum in Beijing, covering sectors including food, new energy, technology and biotechnology, Chinese state media reported, according to Reuters.
Prabowo, who won Indonesia’s presidential elections in February, also chose China for his first visit as president-elect, underscoring Jakarta’s commitment to strengthening strategic ties with Beijing.
In a joint statement after the leaders’ meeting, the countries agreed to strengthen cooperation in sectors such as new electric vehicles, lithium batteries, photovoltaics and the digital economy.
They also pledged to strengthen the partnership in the global energy transition and jointly ensure the security of global mineral supplies and industrial chains, the statement said.
“We have to set an example in this era. Cooperation and not confrontation is the path to peace and prosperity,” Prabowo said, adding that Indonesia is committed to supporting Chinese investors.
On Sunday, Chinese battery material producer GEM (002340.SZ) signed a contract with PT Vale Indonesia to build a high-pressure acid leaching plant in Central Sulawesi, partly to secure nickel resources, a Shenzhen report showed. Prabowo saw the signature.
The nickel industry in Indonesia, the world’s largest producer of the metal, is dominated by Chinese companies including Tsingshan Holding Group and Zhejiang Huayou Cobalt.
Both countries will introduce visa measures, including multiple-entry and long-stay visas, and encourage more direct flights and demand-based destinations, according to the joint statement.
Interview between Time.news Editor and Expert on China-Indonesia Business Agreements
Editor: Welcome to Time.news! Today, we’re diving deep into the recent agreements signed between China and Indonesia, which total a staggering US$10 billion. To help us explore this important development, we have Dr. Mei Lin, an expert in international trade and Southeast Asian economic relations. Welcome, Dr. Lin!
Dr. Lin: Thank you for having me! It’s a pleasure to discuss such an exciting topic.
Editor: Let’s jump right in. The agreements signed at the Indonesia-China Business Forum cover various sectors, including food, infrastructure, and renewable energy. Why do you think these particular sectors were prioritized?
Dr. Lin: Great question! The prioritization of these sectors is a strategic move by both countries. Indonesia has a vast agricultural sector, and with China’s vast market demand, enhancing food production and supply chains can significantly benefit both economies. Additionally, Indonesia is investing heavily in infrastructure to support its growing economy, and Chinese firms have the expertise and financial capacity to assist in those projects. Lastly, with the global shift towards sustainability, the focus on renewable energy is crucial for both nations to meet their future energy needs.
Editor: That makes perfect sense. China’s long history of engaging in infrastructure projects has certainly put it in a position to support Indonesia. However, some critics argue that this could lead to increased dependency on China. What’s your take on that concern?
Dr. Lin: Dependency is a valid concern. However, it’s essential to view these agreements as partnerships rather than one-sided dependencies. Indonesia has actively sought investment to modernize its economy, and these deals can help build its capacities while also providing China with access to resources and markets. The key is ensuring that Indonesia leverages these agreements to foster long-term growth and not just immediate financial relief.
Editor: You bring up an excellent point about leveraging agreements. Speaking of leverage, how do you see the economic relationship between China and Indonesia evolving in the future?
Dr. Lin: I believe we will see a deepening of economic ties, especially as both countries recognize the mutual benefits they can reap. China’s Belt and Road Initiative aims to connect Asia with Europe and Africa through trade and infrastructure development, and Indonesia is a vital player in that strategy. Over time, we may also see increased cooperation in areas like technology transfer and innovation, further enhancing Indonesia’s industrial capabilities.
Editor: That certainly paints a promising future. What about the potential impact on regional geopolitics? How might these agreements influence Indonesia’s relationships with its neighboring countries and other major players?
Dr. Lin: Indonesia is in a unique position within Southeast Asia. Strengthening ties with China could cause some neighboring countries to reassess their strategies as they balance their own relations with China and the U.S. For instance, countries like India and Japan may seek closer ties with Indonesia to counterbalance China’s influence. this development could lead to a more multi-polar regional landscape, where countries actively engage in strategic partnerships to bolster their sovereignty while navigating complex international relations.
Editor: It sounds like we’re on the brink of significant changes in Southeast Asia. Dr. Lin, what would you advise policymakers in Indonesia to focus on as they move forward with these agreements?
Dr. Lin: My advice would be to prioritize transparency and local capacity building. Indonesia should ensure that the agreements not only attract foreign investment but also benefit local communities and industries. Investing in training and technology transfer will empower Indonesian workers and create a more resilient economy. Furthermore, clear regulations will help safeguard against potential exploitative practices while maximizing the benefits of these partnerships.
Editor: Wise insights, Dr. Lin! Thank you so much for sharing your expertise on this important subject today. We appreciate your time and the valuable perspectives you’ve offered.
Dr. Lin: Thank you for having me! It’s been a pleasure discussing these pivotal developments.