How China and Indonesia promote regional cooperation


28.05.25
14:30


Society

How China and Indonesia promote regional cooperation



Strategic investments, digital transformation, and regional diplomacy drive a new era of partnership in the Asia-Pacific

As the largest ASEAN member by population, territory, and economy, and a key G20 player, Indonesia has taken a leading role in advancing ASEAN integration and strengthening China-ASEAN relations, states Jia Duqiang, an associate researcher at the National Institute of International Strategy of the Chinese Academy of Social Sciences, as reported by China Daily, a partner of TV BRICS. Since 2013, China and Indonesia have aligned their national strategies – China’s path to modernisation with Indonesia’s Golden Indonesia 2045 Vision – resulting in high-level cooperation across trade, infrastructure, and investment.

The expert stresses that the significance of the bilateral relationship is further reflected in Indonesian President Prabowo Subianto’s choice of China as his first foreign visit after taking office in late 2024, where both countries agreed to elevate their comprehensive strategic partnership.

Economic Transformation and Technological Advancement

According to Duane Dizon, an expert in strategic communications, in the clean energy sector, major players are establishing electric vehicle (EV) production facilities and contributing to solar energy infrastructure. These investments are essential to Indonesia’s ambitions to become a regional hub for green manufacturing and renewable technologies.

Accelerating the digital economy

The digital economy has also become a vibrant area of collaboration. Chinese tech giants are expanding digital infrastructure and platforms in Indonesia.

“Collaborations in AI, fintech, and digital education are helping Indonesia leapfrog stages of development, while also supporting job creation, skills development, and technology transfer,” explains Alexander Titov, Deputy Secretary General of the International Digital Economies Association.

In addition to deepening commercial activity, these partnerships are building local ecosystems in AI, smart logistics, and cloud infrastructure, which support Indonesia’s broader goals in digital transformation and inclusive growth.

Regional Cooperation and Institutional Alignment

China-ASEAN economic and trade relations have demonstrated sustained vitality. In 2024, China-ASEAN trade reached nearly US$1 trillion, with China maintaining its position as ASEAN’s largest trading partner for 16 years. Conversely, ASEAN has been China’s top partner for five consecutive years, with Vietnam, Malaysia, and Indonesia leading the way.

Beyond trade, collaboration has expanded into sectors like agriculture, digital economy, green development, and infrastructure. China remains one of ASEAN’s top sources of foreign investment, while ASEAN is a crucial market for Chinese enterprises, particularly in agriculture and manufacturing.

Indonesia’s expanding global role

Indonesia’s regional and international presence is also growing. With its recent accession to BRICS, the country gains increased influence in shaping global economic governance. Ronald Yusuf Wijaya, Chairman of the association of different startups and institutions that offers technology-based financial services, highlights the broader significance:

“Indonesia’s BRICS membership strengthens its global influence, expands market access, and enhances economic cooperation in fintech, renewable energy […] all for a sustainable global economy. Geopolitically, this opens new economic opportunities and broadens regional influence,” he stated.

This multilateral engagement enhances Indonesia’s capacity to act as a diplomatic and economic bridge – not only between China and ASEAN but also between the Global South and larger economies.

Photo:
iStock

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