JAKARTA: Chinese Foreign Minister Wang Yi met his Indonesian counterpart, Sugiono, at the Indonesian Foreign Ministry in Jakarta on Friday (Aug 21), both reaffirming their countries’ commitment to strengthening already substantial business and investment ties.
This comprehensive strategic dialogue, which also involved deputy ministers of trade and economic portfolios from both countries, discussed several key issues, including healthcare, security and education.
However, the main topic of the day seemed to be economic cooperation.
“We also appreciate China’s continued commitment to investment in Indonesia,” Sugiono, who uses a single name, said in a joint press statement after the meeting.
“Minister Wang’s visit today... demonstrates that we will continue to uphold this trust and sustain these efforts, reflecting the excellent cooperation that has been established between the Republic of Indonesia and the People’s Republic of China.”
Wang Yi echoed Sugiono’s sentiments.
“By leveraging our respective complementary strengths and deepening mutually beneficial cooperation, we will better assist Indonesia in transforming its resource advantages into drivers of development, thereby benefiting the Indonesian people and accelerating the country’s industrialisation,” Wang said.
“In this sense, as my friend the Indonesian foreign minister noted during our talks, the success of Chinese enterprises in Indonesia is also a success for Indonesia itself,” he added.
According to data from Indonesia’s Ministry of Investment, foreign direct investment from mainland China totalled US$3.9 billion (S$4.95 billion) in the first half of 2026. This makes it one of the top three investors in Indonesia, after Singapore (US$8.8 billion) and the Hong Kong special administrative region (US$7.6 billion).
One of the larger projects that China has funded in Indonesia as part of its Belt and Road initiative is the Jakarta-Bandung high-speed railway, known commercially as Whoosh. It is operated by PT Kereta Cepat Indonesia China, a joint venture between Indonesian and Chinese state-owned consortiums.
Sugiono said he and Wang had discussed the project – which is plagued by low passenger volume and ballooning costs – during the meeting. Both agree that Whoosh “must move forward” and they are “exploring alternatives to increase passenger volume”.
The joint remarks by the duo appear significant, coming after an undated letter written by the China Chamber of Commerce in Indonesia to Indonesian President Prabowo Subianto. The letter, which became public in May, warned that abrupt policy shifts and alleged extortion by officials are undermining confidence in the South-east Asia’s largest economy.
Neither minister mentioned the letter directly. However, Wang said that “Indonesia has pledged to continue providing a fair, transparent and favourable business environment for Chinese enterprises”.
Wang’s visit a catalyst for governance reform
Teuku Rezasyah, an international relations expert at West Java-based President University, said Wang’s visit could prove a catalyst for the Prabowo administration to remedy the issues mentioned in the letter.
“The criticism from China has been very firm. Indonesia must prioritise good corporate governance in the private sector and good governance within the public sector,” Rezasyah told The Straits Times.
“This could actually serve as an opportunity for the President to press the Cabinet to operate in accordance with these principles.”
The duo’s meeting was followed by a closed-door “2+2” meeting between them and Indonesian Defence Minister Sjafrie Sjamsoeddin and his Chinese counterpart, Dong Jun.
“With this 2+2 format, they are able to engage in highly complex and comprehensive discussions,” Rezasyah said.
“So it is of great strategic significance. Indonesia maintains this type of dialogue mechanism with only two other countries: Australia and the United States.”
While no joint statement was released after the 2+2 meeting, the Indonesian Foreign Ministry previously said that the meeting would include discussions about maritime cooperation, including the proposed code of conduct for the South China Sea, which has been a contested area for decades.
Beyond the specifics of the meeting, Rezasyah said the visit served as part of a delicate balancing act for the Prabowo administration – which has drawn closer to Beijing – while also maintaining robust ties with Washington.
“It is indeed very difficult to be 100 per cent neutral,” he said. “Each country should be left feeling it has brought Indonesia into its orbit, even as Indonesia reaps the advantages of both relationships.” - The Straits Times/ANN
