Indonesia, under President Prabowo Subianto, aims for an 8% economic growth by 2029 and is advancing strategic collaboration with China through the Two Countries Twin Parks (TCTP) initiative, designed to accelerate investment, create jobs, and strengthen national economic resilience (26/11).

With a combined population of 1.7 billion and an economic value of USD19.2 trillion, Indonesia and China are key players in global markets. China remains Indonesia’s top trading partner, with bilateral trade reaching USD135 billion in 2024, highlighting its strategic role in supporting Indonesia’s economic growth.

“Two Countries Twin Parks is a strategic initiative between Indonesia and China. Its goal is to build two industrial complexes in the twin cities of both countries, so the synergy between industries and value chains can be optimal,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the closing session of “The City of Blessings” China-Indonesia Economic and Trade Exchange and Matchmaking Conference (26/11).

The twin parks represent a collaborative ecosystem, combining Indonesia’s resources, workforce potential, and domestic market with China’s technology, financing, and manufacturing experience. This synergy is expected to strengthen industrial competitiveness and drive sustainable economic growth.

Key Investment Projects and Priority Sectors

The TCTP program is expected to boost Chinese investment in Indonesia, beginning with the Batang industrial zone, a joint project between the two countries. Future development may extend to other areas, such as Bintan Island. In 2024, Chinese investments focused on the metals industry at USD4 billion and the pharmaceutical sector at USD1 billion.

Indonesia has 19 trade agreements, including one with the European Union, effective in 2027, which will expand market access for Indonesian products. Minister Airlangga emphasized the importance of leveraging these opportunities to accelerate collaboration in joint projects.

Bilateral Engagements and MoUs for Economic Cooperation

The Indonesian government and Fuzhou city authorities strengthened economic ties by signing 16 Memorandums of Understanding (MoUs) worth Rp36.4 trillion, witnessed by Minister Airlangga. These projects, to start in 2026, cover sectors such as steel, nickel, industrial commodities, food processing, integrated fisheries, solar energy, coal supply chains, AI research, new technology and industrial equipment, and industrial and energy supply chain development.

“We need more projects in steel, manufacturing, fisheries, textiles, agriculture, such as tea, furniture, new technologies like drones and EP batteries, including infrastructure and AI. These sectors are promising for Indonesia, and today’s MoUs strengthen China-Indonesia collaboration,” said Minister Airlangga.

After the event, Minister Airlangga met with Executive Vice Governor Guo Ningning of Fujian Province, discussing investment commitments, industrial zone development, job creation, fisheries, aviation, tourism, and education cooperation. Key officials from both countries attended, including representatives from Fuzhou city and the Indonesian economic and digital trade coordination.

PHOTO: COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

This article was created with AI assistance.