Indonesia and China signed four memorandum of understanding (MoUs) on economic cooperation at Jakarta’s Merdeka Palace, with Indonesia President President Prabowo Subianto and Chinese Premier Li Qiang witnessing the agreements.
Bank Indonesia and the People’s Bank of China signed the first MoU, setting up a framework to promote bilateral transactions in local currencies. The agreement was signed by Bank Indonesia Governor Perry Warjiyo and People’s Bank of China Governor Pan Gongsheng.
The second MoU was established between Indonesia’s National Economic Council (DEN) and China’s National Development and Reform Commission (NDRC) to enhance collaboration on economic development policies. The agreement was signed by DEN Chairman Luhut Binsar Pandjaitan and NDRC Chairman Zheng Shanjie.
The third MoU, signed by Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto and Chinese Minister of Commerce Wang Wentao, aims to bolster economic ties between Indonesia and China, particularly in the industrial sector and supply chain management. Additionally, the fourth MoU, focusing on the Two Countries Twin Parks initiative, was also signed by Hartarto and Wentao.
In addition to the four key MoUs, the two nations broadened cooperation across eight more sectors. These include tourism, with agreements between Indonesia’s Ministry of Tourism and China’s Ministry of Culture and Tourism, as well as agricultural exports, where the Indonesian Quarantine Agency and China’s General Administration of Customs will strengthen trade in agricultural products.
Furthermore, economic collaboration is also expanding, with investment agreements between Indonesia’s BPI Danantara and the China Investment Corporation, along with increased business partnership between KADIN and the China Chamber of Commerce in Indonesia.
China remains Indonesia’s top trading partner, with bilateral trade reaching $147.8 billion in 2024, a 6.1% year-on-year increase. China’s exports to Indonesia totaled $76.7 billion, rising 17.6% from the previous year, according to China’s General Administration of Customs.
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