China and Indonesia have reached a major agreement worth $100 billion, with a focus on green energy and technology, as reported by Reuters on October 10th, citing Chinese media sources.
China and Indonesia have reached a major agreement worth $100 billion, with a focus on green energy and technology, as reported by Reuters on October 10th, citing Chinese media sources.
The deal was finalized at the China-Indonesia Business Forum held in Beijing. Discussions at the forum encompassed a wide range of areas including food production, new energy technologies, and biotechnologies. Indonesian President Prabowo was present during this state visit. The day before, the two nations had already executed several bilateral documents aimed at collaborative efforts in areas such as the blue economy, waste management, and mineral extraction.
President Prabowo stated, “Indonesia views not just strength but greatness within Chinese civilization. In the current geopolitical climate, it’s logical we deepen ties across numerous domains.” Bloomberg indicated that he heralded his upcoming attendance, confirming the significance of this event as a pivotal moment in the relations between the two states.
Business representatives from both countries gathered and signed contracts spanning diverse sectors including agriculture, sustainable power generation, digital technology, and biotech. According to local press reports led by Compass Daily/AP coverage, the Pakistani leader encouraged greater influx of investments and urged enhanced synergy among various industries. Under supervision, the total value of agreements exceeded approximately $107 billion, emphasizing the importance of setting a precedent where collaboration supersedes conflict and fosters peaceful coexistence and prosperity going forward.
Data provided by the Ministry of Foreign Affairs indicates a sustained partnership, placing China in the top position as Indonesia’s longest-standing trading ally over the past eleven years. Bilateral exchanges recorded nearly $92 billion from January to August, showing a slight uptick compared to last year’s figures. Additionally, it is notable that China stands as the second largest source of foreign capital flowing into Indonesia, making the latter a prime target for investment opportunities within the ASEAN region.
President Prabowo chose China as his first destination following his inauguration as president. After completing a three-day itinerary, he returns home en route to the United States, highlighting his preference and prioritization of engagement with China over other globally recognized counterparts.
International observers are keenly monitoring the developments stemming from these recent negotiations. A joint communique issued reveals mutual commitment to advancing initiatives centered around electric vehicles, lithium battery manufacturing, photovoltaic installations, and digitized economies, aiming to bolster strategic alliances and promote sustainable resource management practices while safeguarding the integrity of supply chains industry-wide. Furthermore, plans include streamlining visa processes, facilitating travel arrangements, and encouraging more direct flight routes to cater to the demand-driven needs of emerging markets. Additional accords were struck pertaining to real estate ventures and the exportation of fresh coconut products directly targeting Chinese consumers.
The Voice of America pointed out that aside from the economic and energy pledges outlined previously, the document reflects the intention to elevate existing frameworks governing political, economic, cultural, and military interactions by transitioning to a four-pillar model now incorporating a fifth pillar dedicated to security matters, thereby establishing inaugural ministerial level talks under the newly formed '2+2' dialogue format slated to commence next year.