Recent Developments in Diplomatic Relations between Indonesia and China

The development of diplomatic relations between Indonesia and China has experienced significant dynamics in recent years, contributing to geopolitical and economic influence in the Southeast Asian region. This cooperation is increasingly expanding in various fields including economy, trade and investment, strengthening the position of both countries at the international level. In 2021, the two countries signed a strategic cooperation agreement, covering investment in infrastructure, information technology and sustainable development. This happened in the midst of the Belt and Road Initiative (BRI) launched by China. Indonesia, as one of the main partners, has many opportunities to develop infrastructure through large projects such as the construction of ports, toll roads and power plants. In the field of trade, the value of trade between Indonesia and China continues to increase. In 2022, the total trade value will reach more than USD 80 billion, making China Indonesia’s largest trading partner. Leading commodities such as palm oil, coal and nickel are the main pillars of Indonesia’s exports to China, while electronic products, machinery and consumer goods are the main imports from China. The free trade agreement is also expected to strengthen market access between the two countries. In terms of investment, China is one of the largest foreign investors in Indonesia. Projects financed by Chinese investment have the potential to create jobs and new technologies, especially in the industrial and renewable energy sectors. Through this collaboration, Indonesia is expected to be able to increase industrial competitiveness and technological innovation at the global level. However, this relationship is not without challenges. Issues related to sovereignty, such as territorial disputes in the South China Sea, are a sensitive issue. However, both countries are committed to resolving differences through dialogue and diplomacy, avoiding friction that could damage bilateral relations. On the other hand, collaboration in the social and cultural fields is also a main focus. Cultural, educational and tourism exchanges are increasingly active, with an increasing number of student exchange programs and visits by artistic delegations between the two countries. This not only strengthens interpersonal relationships, but also builds a deeper understanding of each other’s culture. In a multilateral context, Indonesia and China also work together in regional forums such as ASEAN and the G20, strengthening coordination in dealing with global issues such as climate change and post-pandemic economic recovery. Indonesia’s active participation in the international arena provides an opportunity for China to better understand the political dynamics in this region. Overall, the latest developments in diplomatic relations between Indonesia and China show the two countries’ commitment to deepening cooperation and mutual benefits. With their enormous potential, both countries stand on the threshold of opportunity to strengthen this strategic relationship in facing ever-changing global challenges and dynamics.