Indonesia and China Ink $10 Billion in Deals at Beijing Forum
Beijing, May 12, 2024 - Indonesia and China have sealed deals worth $10 billion during the Indonesia-China Business Forum held in Beijing on Sunday, according to Chinese state media. The agreements span various sectors including food, new energy, technology, and biotechnology, signaling a deepening economic partnership between the two nations.
The forum was a follow-up to a meeting on Saturday between Chinese President Xi Jinping and Indonesian President Prabowo Subianto, who is on his inaugural state visit to China since assuming office last month. Prabowo, who secured victory in Indonesia's presidential election in February, chose China as his first destination as president-elect, highlighting the strategic importance Jakarta places on its relationship with Beijing.
During their discussions, both leaders agreed to intensify cooperation in areas such as new energy vehicles, lithium batteries, photovoltaics, and the digital economy. They also committed to enhancing their partnership in the global energy transition and securing the global mineral supply and industrial chains, as outlined in a joint statement.
President Prabowo expressed optimism about the potential of this close cooperation to bolster regional stability. "We must set an example that in this era, cooperation not confrontation is the path to peace and prosperity," he stated, emphasizing Indonesia's commitment to supporting Chinese investors.
A significant highlight of the visit was the signing of a deal between Chinese battery materials producer GEM and PT Vale Indonesia. This agreement aims to establish a high-pressure acid leaching plant in central Sulawesi, aimed at securing nickel resources, with President Prabowo present at the signing.
The nickel industry in Indonesia, where it is the world's largest producer, is heavily influenced by Chinese companies like Tsingshan Holding Group and Zhejiang Huayou Cobalt.
In the technology sector, Indonesian tech giant GoTo Gojek Tokopedia has entered into agreements with China's Tencent and Alibaba to enhance cloud infrastructure and digital talent development in Indonesia.
Further agreements include visa facilitation measures for easier travel, encouraging more direct flights between the two countries, and fostering cooperation in housing and the export of Indonesian fresh coconuts to China.
This flurry of agreements underscores a robust commitment to strengthening economic ties and fostering mutual growth between Indonesia and China, setting a precedent for international collaboration in the region.