Indonesia and China have fortified their economic ties by signing three investment agreements totaling about $2 billion, equivalent to Rp36 trillion. These agreements emerged from the Indonesia-China Partnership Forum held in Jakarta, marking significant strides in renewable energy, manufacturing, and infrastructure sectors. Leading the pack is an ambitious project valued at approximately $1.35 billion to develop a 300-megawatt agrivoltaic solar power plant in North Sumatra. This initiative, which merges solar energy production with agricultural activities, is poised to be one of the largest renewable energy projects in the region.
In addition to the solar project, two other significant agreements were formalized. The first is between Indonesian food and beverage company Jobubu Jarum Minahasa and Guangxi G. Taste Food Co., Ltd. from China. The second deal involves Telkom Properti Indonesia collaborating with CNEC Engineering Indonesia. These partnerships are expected to bolster both the manufacturing and infrastructure sectors, contributing to the ongoing economic cooperation between the two countries.
Djauhari Oratmangun, Indonesia’s Ambassador to China, emphasized the country’s focus on attracting investments that can generate employment, facilitate technology transfer, and bolster domestic industries. He identified renewable energy, electric vehicles, artificial intelligence, smart manufacturing, and green technology as pivotal areas for future collaboration between Indonesia and China. This strategic focus underlines Indonesia’s commitment to sustainable economic growth.
The Indonesian Ministry of Investment reports that Chinese investments have significantly impacted the local economy, with investments amounting to $38.34 billion from 2021 through the first half of 2026. These investments have been instrumental in creating over 500,000 jobs, demonstrating the tangible benefits of the Indonesia-China economic partnership. As the collaboration continues to evolve, both nations remain committed to enhancing their economic ties, particularly in sectors that promise sustainable development and technological advancements.