Indonesia Seeks Strategic Infrastructure Investment from China

KBRN, Beijing: Indonesia is intensifying efforts to attract infrastructure investment from China, with a focus on strategic connectivity and long-term impact, a deputy at the Coordinating Ministry for Infrastructure and Regional Development revealed.

Speaking at a business forum hosted by the Indonesian Embassy in Beijing, Deputy for Housing and Settlement Infrastructure Coordination at the Ministry, Ronny Hutahayan, emphasized the importance of viewing infrastructure projects within a broader ecosystem.

“We’re not just pursuing isolated infrastructure projects. We’re looking at the bigger picture: connectivity, logistics, and other strategic factors. Ports, roads, airports, and warehousing must be developed as part of an integrated system,” Ronny said, Friday, October 24, 2025, as quoted by antaranews.com.

Ronny noted that Indonesia and China are entering a new era of partnership defined by trust, equality, and a shared vision for the future.

“Our friendship predates modern diplomacy. Economic cooperation is shifting from volume to value. The question is no longer how much we build or trade, but how well our collaboration serves the people; how reliably we connect them and how efficiently we move goods and data," Ronny said.

Infrastructure remains a top priority for Indonesia, Ronny added, as it underpins resilient food supply chains, supports clean and reliable energy growth, and fosters livable cities and competitive industries.

To ensure sustainability and fairness, Ronny introduced financing mechanisms ranging from public-private partnerships to land value capture schemes. “These approaches ensure that infrastructure investments return value to communities. Our role is to translate national goals into measurable impact.”

The ministry is working to align central and regional governments, state-owned enterprises, and private partners under a unified framework, from planning to execution. “We help remove barriers through clear regulations, timely facilitation, and where possible, blended financing structures.”

Projects like the Jakarta–Bandung high-speed rail (Whoosh) and its planned extension to Surabaya exemplify how infrastructure connects economies and communities.

“This corridor will become the strategic backbone of Java’s urban industrial belt, linking factories, logistics hubs, airports, and ports through integrated, transit-oriented development. Its value lies not just in speed, but in reliability, integration, and local benefits.”

Despite progress, Ronny acknowledged challenges in executing Chinese investments in Indonesia. “There’s always room for improvement. Dialogue is essential. Challenges arise during planning, implementation, and even post-completion, but we continue to evaluate and adapt.”

According to the Indonesian Embassy in Beijing, bilateral trade between Indonesia and China reached USD 147.79 billion in 2024. From January to August 2025 alone, trade volume stood at nearly USD 104.82 billion, making China Indonesia’s largest trading partner. Key Indonesian exports include palm oil, coal, processed nickel, edible bird’s nests, and tropical fruits.

In terms of investment, China contributed USD 8.1 billion in 2024, while Hong Kong invested USD 8.2 billion. In the first half of 2025, China’s investment totaled USD 3.6 billion, with Hong Kong at USD 4.6 billion, ranking them third and second among Indonesia’s top investors.

Tourism also continues to grow, with 1.2 million Chinese visitors recorded in 2024. Between January and August 2025, 905,002 Chinese tourists had already visited Indonesia. ***