- PCINU China Facilitates Cultural Exchange with Ni Hao Ramadhan Events: Pengurus Cabang Istimewa Nadhlatul Ulama (PCINU) China recently organized the “Ni Hao Ramadan” activities across six Indonesian cities: Banda Aceh, Kendal, Pontianak, Indramayu, Mataram, and Yogyakarta. Aimed at fostering intercultural understanding, the events featured the sharing of experiences on religion and tolerance in China through the book “Indonesian Santri in China.” This initiative, which has been ongoing since 2000, is part of the cultural exchanges between Indonesia and China. Notably, this year’s Ni Hao Ramadhan activity marks a significant milestone as it transitions to offline events, starting in Aceh after a successful run in Central Java.
- Chinese Furniture Companies Eye Expansion into Indonesia: Following their participation in the 6th China Trade Fair Indonesia exhibition, also known as China Homelife, held in Jakarta until March 16, 2024, Chinese furniture manufacturers have expressed keen interest in establishing factories in Indonesia. With over 400 Chinese manufacturers showcasing their top-quality products at the exhibition, the event served as a platform for promoting trade and bilateral cooperation between China and Indonesia.
- Prabowo’s Upcoming Visit to China: Chinese President Xi Jinping extended congratulations to Prabowo Subianto, the winner of Indonesia’s 2024 presidential election, in an official letter delivered by the Chinese Ambassador to Indonesia on Thursday, March 20, 2024. President Xi expressed hopes for a prosperous Indonesia under Prabowo’s administration. In response to the invitation extended by President Xi Jinping, Prabowo is set to embark on a three-day visit to China starting next week, as confirmed by the Indonesian Ministry of Defense on Friday, March 29. This visit, viewed by analysts as a move by Beijing to strengthen ties amidst U.S.-China competition in the region, aims to bolster bilateral cooperation in defense and other strategic areas. Observers note the deepening relationship between Indonesia and China during the tenure of President Joko “Jokowi” Widodo, citing projects like the Jakarta-Bandung high-speed railway and nickel industry initiatives under the Belt and Road Initiative. Analysts anticipate that China seeks to ensure Prabowo’s foreign policy alignment with Jokowi’s, particularly regarding relations with the West. Prabowo’s early visit to China, before his inauguration, marks a departure from tradition and demonstrates Prabowo’s recognition of China as a key economic partner and his intention to continue Jokowi’s legacy of close ties with China. Prabowo’s interest in China also stems from China’s modernization of its defense.
- Virtue DX Launches $10 Million Medical Equipment Factory: Chinese investment in Indonesia’s medical sector sees Virtue DX inaugurating a manufacturing facility in West Java, marking a significant step in healthcare technology collaboration. This venture is complemented by a joint venture with local medical supplier ESA Group, showcasing China’s commitment to the Indonesian medical device and supplies sector.
- China-Indonesia Business Exchange Conference Strengthens Trade Ties: The China – Indonesia Business Exchange Conference, held on March 5, 2024, in Jakarta, emphasized trade cooperation between the two nations. Delegates from various sectors, including agriculture, textiles, and machinery, highlighted China’s pivotal role as Indonesia’s closest trading partner.
- Chinese Textile Manufacturer Eyes Indonesia: A Chinese textile manufacturer, catering to renowned brands like Nike and Adidas, expresses interest in investing in Indonesia. The planned factory in West Java signals confidence in Indonesia’s textile industry and is expected to attract hundreds of millions of dollars in investment, potentially generating 10,000 jobs. The decision by the Chinese textile manufacturer to invest in Indonesia aligns seamlessly with the nation’s robust exports in textiles, clothing, and accessories. Indonesia’s reputation as a key player in the global textile market further reinforces the attractiveness of this investment opportunity.
- China Extends Condolences: Chinese Foreign Minister Wang Yi conveyed his condolences to Indonesian Foreign Minister Retno Marsudi following the devastating floods and landslides in Pesisir Selatan Regency, West Sumatra, on March 13, 2024. Expressing shock at the loss of lives and property, Wang Yi emphasized China’s solidarity with Indonesia during this challenging time.
- Indonesia’s Commitment to Cooperation in the South China Sea: Indonesia reaffirms its commitment to cooperation and seeking friendships in the South China Sea (SCS) region amidst escalating tensions. At a recent webinar on the South China Sea, Coordinating Minister for Political, Legal, and Security Affairs, Marshal TNI (Purn) Hadi Tjahjanto, emphasized the importance of open cooperation space and Confidence Building Measures to prevent conflicts in the region. Indonesia remains vigilant against potential conflicts in the SCS, given overlapping territorial claims and unilateral actions by China, including the issuance of the controversial nine-dash line and its recent expansion to ten-dash lines. As a stakeholder in the SCS, Indonesia aims to manage disputes peacefully and urges the adoption of a Code of Conduct (CoC) to enhance mutual trust and stability in the region. Under Indonesia’s chairmanship of ASEAN in 2023, significant progress has been made in expediting CoC negotiations, with the aim of finalizing the agreement by 2025. Indonesia remains optimistic that the CoC will serve as a foundation for fostering trust and managing conflicts effectively in the South China Sea.
- Joint Development Agreement Signed for Green Energy Projects: PT PLN (Persero), through its Sub Holding PLN Indonesia Power, and China Energy Engineering Group Co., Ltd (CEEC) have inked a significant Joint Development Study Agreement (JDSA) in Jakarta. The agreement, signed on March 21, marks a pivotal step towards the comprehensive development of green energy projects in Sulawesi, Indonesia. Darmawan Prasodjo, CEO of PLN, emphasized the strategic importance of this collaboration in accelerating Indonesia’s transition towards renewable energy sources. He highlighted PLN’s crucial role as a key player in the nation’s ambitious energy transition agenda and reiterated the commitment to partnering with both national and global entities to achieve the ambitious goal of Net Zero Emissions (NZE) by 2060 or even earlier. The signing of this agreement coincides with the impending release of Indonesia’s new National Electricity Business Plan (RUKN). Under this plan, priority will be given to the establishment of large-scale renewable energy power plants and green transmission lines that will interconnect islands throughout the Indonesian archipelago. The RUKN design includes ambitious targets for renewable energy, including plans for hydro and geothermal-based power plants with a combined capacity of 32 gigawatts (GW), alongside solar and wind-based plants with a total capacity of 28 GW. The development of green transmission lines will be instrumental in efficiently distributing green electricity between islands, addressing potential mismatches between energy sources and demand centers. Song Hailiang, Chairman of CEEC Group, expressed unwavering support for Indonesia. Leveraging their extensive experience in developing renewable energy projects, CEEC views Indonesia as a crucial partner in jointly working towards realizing the NZE 2060 target.
- New C919 Aircraft Showcased in Indonesia: The COMAC aircraft factory from China unveiled its latest product, the C919 aircraft, in Indonesia. From March 10 to March 11, 2024, the COMAC factory, in collaboration with TransNusa Airlines, hosted a special event at Hangar 2 GMF, Tangerang Soekarno Hatta Airport complex, inviting members of Indonesia’s national airlines association, INACA, to examine the cutting-edge aircraft up close.
- Enhanced Counter-Terrorism Cooperation: Earlier this month, Chinese State Councilor and Minister of Public Security, Wang Xiaohong, held discussions with Rycko Amelza Dahniel, the head of Indonesia’s National Counterterrorism Agency, in Beijing. Both parties pledged to bolster counter-terrorism cooperation, aligning with the vital consensus established by their respective leaders. The commitment extends to active participation in the Global Security Initiative, with a shared goal of elevating the overall efficacy of counter-terrorism efforts between China and Indonesia.
- Construction of Cyber Park: Bambang Soesatyo, Chairman of the MPR RI and Vice Chairman of the Golkar Party, welcomed investors from China, Singapore, Malaysia, and America to spearhead the construction of a Cyber Park in Indonesia. Embracing the concept of sustainable tourism, this project, touted as the first and largest in Southeast Asia, is set to revolutionize the tourism landscape. With an estimated investment value in trillions of rupiah, the Cyber Park is expected to create hundreds of thousands of jobs while attracting tourists from both domestic and international markets. Soesatyo emphasized the vast potential of Indonesia’s tourism sector, aiming for a turnover of Rp 3,000 trillion and 1.25-1.5 billion tourist trips in 2024.
- GoTo Group Represents Indonesia in China: The GoTo Group, in collaboration with the Indonesian government, the Indonesian Chamber of Commerce and Industry (Kadin), and the Industrial Relations Committee for China, showcased the prowess of Indonesian technology on the global stage. Participating in the Indonesia Pavilion event in Fuzhou, China, the GoTo Group demonstrated its commitment to bilateral trade between Indonesia and China through technological innovation and excellence.
- China-Indonesia Joint Scientific Expedition Success: The scientific cooperation between China and Indonesia reached new heights with the successful completion of the joint scientific expedition led by the Chinese Academy of Sciences and Indonesia’s National Research and Innovation Agency. The expedition, which saw the Chinese scientific research ship “Discovery One” and the manned submersible “Striver,” embarked on a 50-day voyage culminating in a deep-sea diving mission into the Java Trench in the Indian Ocean. Setting a new milestone, the team achieved a record-breaking dive to a depth of 7,180 meters, marking the deepest dive ever recorded in the Java Trench.
- Indonesia Embraces QR Payment System to Attract Chinese Tourists: Indonesia is broadening its use of QR code payment systems, popularized in China, to facilitate spending for Chinese tourists, even in small shops. This initiative, while aimed at enhancing regional connectivity within Southeast Asia, aligns with Indonesia’s strategy to appeal to Chinese travelers. Bank Indonesia is extending its QR payment network to include Chinese banks, as well as those in Japan and South Korea. Sandiaga Uno, Indonesia’s Minister for Tourism and Creative Economy, aims to boost Chinese tourist arrivals, extend their stays, and increase spending. The ministry organized its first promotional event, “Wonderful Indonesia,” in China in May 2023, with plans to attract up to 1.5 million Chinese tourists in 2024. Activities like chocolate making and elephant bathing are being promoted to enhance the tourist experience. Since the introduction of the Quick Response Code Indonesian Standard (QRIS) in 2019, Indonesians have widely embraced QR payments, with usage and transactions seeing significant growth annually. A memorandum of understanding (MOU) signed among several countries, including Indonesia, Singapore, Thailand, Malaysia, and the Philippines, aims to unify QR code payment systems, facilitating cross-border transactions and promoting regional financial integration.
- Expansion of CNC Line’s Service: CNC Container Line has announced the launch of a new service, KCI, offering a weekly direct route linking Indonesia with South China and South Korea. The service, commencing on March 25, will connect ports in Jakarta, Surabaya, Shekou (China), Xiamen (China), and Busan (South Korea), facilitating trade and maritime connectivity between the regions.
- Chinese Automakers Making Inroads into Indonesia’s Automotive Market: Throughout this month, significant developments have unfolded in the Indonesian automotive market. Beijing Automotive Group (BAIC), a prominent Chinese automotive company, has officially entered Indonesia through a strategic partnership with local distributor PT JIO Distribusi Indonesia (JDI). This collaboration aims to introduce two car series – the off-road BJ40 Plus and the medium SUV BAIC X55-II – to the Indonesian market, with plans for their debut at the GAIKINDO Indonesia International Auto Show (GIIAS) 2024 in July. Simultaneously, Chinese electric car manufacturer Neta is gearing up to commence local production in Indonesia in May 2024. In collaboration with PT Handal Indonesia Motor, Neta will assemble its electric cars in a completely knocked down (CKD) form, underscoring the company’s commitment to Indonesia’s automotive sector. These developments have sparked intensified competition in the Indonesian automotive landscape, particularly with the aggressive expansion of Chinese electric car manufacturers. Taking advantage of government incentives such as tax waivers on import tariffs and luxury goods tax for electric vehicle (EV) makers, Chinese companies are rapidly expanding their footprint in the country. Meanwhile, American carmaker Tesla faces obstacles, grappling with the inability to leverage available tax waivers and encountering higher manufacturing costs.
- Investment in Indonesia’s Nickel Sector: Tsingshan Holding Group Co., the world’s top nickel producer based in China, is set to establish a battery plant in Indonesia, marking a significant investment in the country’s burgeoning electric vehicle (EV) industry. REPT BATTERO Energy Co., a subsidiary of Tsingshan, will construct its first overseas battery factory alongside Tsingshan’s existing operations in Weda Bay, Indonesia.
- Concerns Over TikTok Resurface: Indonesian lawmakers express apprehension over the TikTok Shop business model, citing predatory pricing practices that could undermine the viability of Micro, Small, and Medium Enterprises (MSMEs) in the country. Concerns arise regarding the prioritization of Chinese products on the platform, potentially marginalizing local businesses and hindering fair competition. Amidst calls for regulatory intervention, the Indonesian government faces the challenge of balancing consumer access to diverse product offerings with safeguarding the interests of local businesses. The outcome of this discourse will likely shape Indonesia’s approach to regulating e-commerce platforms and promoting equitable market participation.
- Plastic Industry Concerns: Indonesia’s plastic industry grapples with the repercussions of oversupply in China’s petrochemical sector, leading to a surge in imports of plastic raw materials. Suhat Miyarso, Chairman of the Indonesian Olefin, Aromatic, and Plastic Industry Association (Inaplas), highlights the influx of petrochemical products from China, exacerbating challenges for Indonesia’s domestic plastic manufacturers. The oversupply in China, fueled by extensive capacity expansion, poses a threat to the competitiveness of Indonesia’s plastic industry. To address these concerns, Indonesia implements import regulations aimed at curbing the inflow of foreign plastic products and supporting the resilience of its domestic industry. The regulations seek to provide legal clarity for businesses and investors while fostering a conducive environment for local industrial development.
- Bali Tourism Safety Concerns: Recent incidents involving injured Chinese tourists in traffic accidents or falls from cliffs in Bali have raised concerns among prospective Chinese visitors. Experts advise prospective travelers to exercise caution and refrain from believing misinformation on social media regarding motorcycle rentals and traffic regulations. It’s emphasized that Indonesia’s traffic rules differ from China’s, necessitating extra vigilance. Additionally, tourists are urged to purchase travel insurance due to the relatively high costs of international hospital care in Bali. Recommendations align with warnings from the Chinese Consulate General in Denpasar, emphasizing adherence to local laws and customs.
- Partai NasDem Welcomes Chinese Media Delegation: Partai NasDem recently welcomed a delegation from the International Department of the CPC Central Committee (IDCPC) Media at the NasDem Tower. This visit served as a platform to deepen the understanding between China and Indonesia, highlighting shared cultural and educational interests beyond mere economic collaborations. Deliberations during the meeting delved into avenues for bolstering media cooperation and fostering people-to-people exchanges, aiming to fortify bilateral relations between the two nations. The IDCPC Media delegation demonstrated a keen interest in collaborative efforts aimed at enhancing mutual awareness between China and Indonesia. The meeting witnessed the participation of delegates from various prominent Chinese media organizations alongside key figures from Partai NasDem. This engagement is part of China’s increasing media presence in Indonesia to uphold a positive global image.
- Educational Collaboration between Indonesia and China: Universitas Borobudur Jakarta and seven prestigious Chinese universities recently inked a significant memorandum of understanding (MoU) aimed at fortifying educational collaboration. These comprehensive agreements encompass a wide array of initiatives, ranging from student exchanges and joint research endeavors to engaging professors in scholarly pursuits. A notable highlight of this partnership is the establishment of the Indonesia-China Technology Institute (ICTI), envisioned to catalyze technological advancements and spur innovation. The signing ceremony, graced by representatives from both Indonesian and Chinese educational institutions, symbolized a shared commitment to nurturing closer ties within academia across the two nations. Moreover, symposiums focusing on educational collaboration in the context of globalization were convened, to explore additional avenues of cooperation and mutual benefit.
Compiled by:
Fenny Desmi Widiastuti
Tiara Ayu Fatmasari
Edited by:
Muhammad Zulfikar Rakhmat
Yeta Purnama
