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Indonesia-China to Boost Trade Beyond $167 Billion Threshold

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Indonesia and China reached an agreement to increase bilateral trade beyond the existing volume of US$167 billion, highlighting the unexploited economic potential between both countries after their first Comprehensive Strategic Dialogue (CSD) in Jakarta.

After a meeting with his Chinese counterpart Wang Yi, Indonesian Foreign Minister Sugiono highlighted that both nations aim to strengthen economic relations and enhance strategic frameworks in areas such as energy, minerals, and maritime commerce.

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The discussions initiated early conversations regarding the 2027–2031 Action Plan while creating opportunities for innovative collaborative frameworks in artificial intelligence, cutting-edge technology, and quarantine protocols.

Upcoming technical projects are anticipated to involve collaborative creation of communication satellites and increased financial collaboration through local currency dealings. The two strategic partners also reiterated their dedication to funding current Belt and Road Initiative projects—particularly the Jakarta–Bandung High-Speed Railway—while implementing strategies to enhance passenger capacity.

To enhance industrial resilience, bilateral collaboration will focus on food security, essential minerals, and strategic infrastructure under Indonesian President Prabowo Subianto's administration.

 

Alongside economic initiatives, the conversation covered wider defense and diplomatic objectives.

Maritime agreements will emphasize navigation safety, marine research, and enhancing security capabilities, along with increased STEM scholarship options for Indonesian students. Indonesia reaffirmed its backing for China's forthcoming APEC 2026 leadership in Shenzhen.

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Formed during FM Sugiono’s trip to Beijing in April 2025, the foreign-minister-level CSD framework lays the groundwork for the second 2+2 dialogue mechanism—bringing together the defense and foreign ministers of both countries to address regional and global security concerns.

The meeting also initiated conversations about the Indonesia-China Action Plan 2027–2031, which will replace the existing 2022–2026 Action Plan. The launch of the CSD corresponds with significant national planning timelines in both nations, encompassing the execution of China’s 15th Five-Year Plan and Indonesia’s 2025–2029 Medium-Term Action Plan, which contributes to the national strategy for achieving the “Golden Indonesia 2045” vision.

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The CSD framework was initially created during Sugiono’s trip to Beijing in April 2025 as a new bilateral mechanism at the level of foreign ministers.

In the meeting, Sugiono conveyed Indonesia's condolences regarding the recent natural disasters in China, emphasizing that common global challenges highlight the importance of a more robust bilateral partnership and shared resilience.

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