RRI.CO.ID, Jakarta - Indonesia is stepping up efforts to position itself as a key player in Asia’s economic landscape, with ties to China expanding across trade, investment, and strategic sectors.

Economic Affairs Ministry spokesperson Haryo Limanseto said Indonesia’s economic ties with China continue to grow stronger and more comprehensive through expanded cooperation across strategic sectors.

“The government is committed to opening opportunities and broadening mutually beneficial cooperation, not only in trade and investment but also in industry, education, the digital economy, and technology,” Haryo stated in Jakarta on Friday, July 24, 2026, as quoted by Antara.

He noted that recent initiatives reflect the strengthening of bilateral relations, including the visit of Fujian’s vice governor and Chinese business delegates under the Two Countries Twin Parks framework, and Indonesia’s role as a founding member of the World Artificial Intelligence Cooperation Organization (WAICO) through a declaration signed in Shanghai on July 16.

Education partnerships are also deepening, with collaborations involving leading Chinese universities such as Tsinghua, realized through research and seminars at Bali’s Special Economic Zone.

In the automotive sector, Chinese firms BYD and Chery have expanded investments, now ranking among the top five players in Indonesia’s market.

Trade agreements like the ASEAN‑China Free Trade Area (effective since 2010) and the Regional Comprehensive Economic Partnership (since 2022) further underpin economic ties.

Indonesia reported bilateral trade with China at USD 154 billion in 2025, while Chinese data placed the figure closer to USD 160 billion, with exports including ferroalloy, nickel matte, coal, lignite, and palm oil.

China remains one of Indonesia’s largest investors, with growing contributions across strategic industries.

Coordinating Minister for Economic Affairs Airlangga Hartarto recently hosted Chinese business delegates and Indonesia’s ambassador to China, encouraging investment in semiconductors, fiber‑optic infrastructure, digital applications, and data centers as part of Indonesia’s digital transformation.

To attract more investment, the government is offering competitive fiscal incentives, including full tax holidays, tax allowances, investment allowances, and super tax deductions to support innovation, human resource development, and industrial growth. ***