Indonesia and China are strengthening their diplomatic and economic ties amid rising tensions with the United States, particularly highlighted during Indonesian President Prabowo Subianto’s recent state visit to Beijing. This trip marked President Prabowo's first international engagement since his inauguration, emphasizing Indonesia's strategic pivot toward Beijing as it navigates its role between competing superpowers.
On November 9, 2024, during the visit, Indonesia and China signed several significant agreements valued at over $10 billion. These agreements cover various sectors, including infrastructure, mining, and energy, and will likely play pivotal roles in shaping the future of Indonesia’s economy. For example, both countries agreed to collaborate closely on the blue economy, which encompasses sustainable marine resource management, including fisheries and marine tourism.
President Prabowo stated, “The relationship between China and Indonesia is getting stronger and stronger.” This sentiment was echoed by Chinese President Xi Jinping, who noted the significance of Prabowo’s choice to visit China first, which he interpreted as indicative of Indonesia’s commitment to deepening ties with China.
Key to this strengthened relationship is the Memorandum of Understanding (MoU) on Blue Economy Cooperation, which lays the groundwork for extensive collaboration on various marine initiatives. Coordinated by Indonesia's Chief Economic Minister, Airlangga Hartarto, and Chinese Trade Minister, Wang Wentao, the agreement covers areas such as coastal renewable energy, aquaculture, and joint shipbuilding. Airlangga pointed out the urgent need to tap Indonesia’s vast blue economy potential to drive the nation’s economic growth target of eight percent.
Another notable development during the visit was China’s pledge to support Indonesia’s free meal program. The Chinese government agreed to fund the 'Food Supplementation and School Feeding Programme,' which aims to provide nutritious meals to millions of children across the archipelago. This initiative aligns with Prabowo’s administration’s broader goals of poverty alleviation and enhancing food security.
Besides the funding, the MoU encompasses seven additional agreements, including protocols on phytosanitary requirements for Indonesian coconut exports to China, promoting sustainable fisheries through technical cooperation, and enhancing cooperation on green minerals and water resources. The comprehensive nature of these agreements signifies both nations’ commitment to long-term partnership.
While solidifying ties with China is pivotal, Indonesia is acutely aware of its nuanced position concerning U.S.-China relations. With President Trump’s anticipated return to the global stage—arguably reigniting tensions—the Indonesian leadership strives to maintain neutrality, presenting itself as a mediator between the two major powers. The strategic nature of this diplomacy reflects Indonesia's broader aspirations of enhancing its regional influence and securing economic advantages.
Local analysts note the importance of this partnership as China emerges as the fastest-growing leader in marine technology and Indonesia seeks to develop its own capabilities. The signing of these agreements is seen not just as economic opportunities, but as strategic steps toward bolstering Indonesia's position as a significant player within Southeast Asia and beyond.
Prabowo’s state visit and the ensuing agreements are expected to pave the way for enhanced bilateral trade and direct investment flows, which are critically needed for Indonesia's development agenda. The economic collaboration with China is also perceived positively by many Indonesian citizens, eager for progress and prosperity within their nation.
On the ground, public response to Prabowo's visit has been overwhelmingly supportive, with many praising the initiative to improve relations with China, particularly considering China’s increasing global standing and investment capabilities. Some citizens are expressing hope for what this partnership could mean for local employment opportunities and infrastructure development.
While there are potential concerns about dependency on China, the Indonesian government emphasizes the mutual benefits derived from such engagement, asserting its position on safeguarding national interests. The Indonesian leadership seeks to balance its relationship with China by ensuring adherence to international norms and standards of sustainable development.
Overall, the recent developments underline Indonesia’s strategic approach to foreign diplomacy, especially with China and the shifting dynamics with the U.S. This pivot may denote Indonesia's aspiration to emerge as a regional hub for trade, investment, and innovation, effectively reshaping the economic contours of Southeast Asia.
With the agreements freshly inked and initiatives on the horizon, Indonesia stands at the cusp of transforming its socio-economic framework, thereby fostering resilience against the backdrop of global uncertainties. The success of these initiatives will hinge on effective implementation, continued bilateral collaboration, and Indonesia's ability to navigate the complex geopolitical terrain.
