Investment Milestone Achieved – $10 Billion Investment Commitments Secured at Indonesia-China Business Forum

Jakarta, INTI - As part of a landmark state visit to China by President Prabowo Subianto, Indonesia has set the stage for unprecedented investment commitments. The Indonesia-China Business Forum (ICBF), held from November 8-10, 2024, in Beijing, proved a historic platform where government officials, industry leaders, and investors gathered to strengthen economic ties. The forum, attended by more than 200 business leaders from China and Indonesia, culminated in USD 10.07 billion in new investment commitments across critical industries.

A Strategic Alliance for Economic Growth

Minister of Investment Rosan Perkasa Roeslani, who accompanied President Prabowo, highlighted Indonesia’s proactive approach to fostering a favorable investment climate. “China remains a top investor in Indonesia, and our goal is to maintain an environment that encourages sustainable and mutually beneficial investment,” he emphasized.

The USD 10.07 billion committed during the ICBF will fund various strategic sectors including healthcare, biotechnology, renewable energy, food security, and financial services. These sectors are aligned with Indonesia’s vision of sustainable economic growth and are expected to create a considerable impact on the country’s infrastructure and employment landscape.

Securing Future Investments: Key Partnerships Established

The ICBF is a reflection of the collaborative spirit that has come to define Indonesia-China relations. The event featured several Memorandums of Understanding (MoUs) between companies, formalizing joint efforts in industrial development. These partnerships are expected to foster technological exchange, create jobs, and build a resilient infrastructure that supports both Indonesia and China’s goals of economic advancement.

The healthcare sector, for instance, will benefit from Chinese expertise in biotechnological innovation, with the goal of developing Indonesia’s pharmaceutical industry. Similarly, investments in renewable energy will propel Indonesia’s transition to greener energy solutions, helping the country meet its ambitious sustainability targets. Food security is another critical area addressed by these MoUs, focusing on enhancing Indonesia’s agricultural productivity and resource management.

Expanding Economic Opportunities: The Role of Investment

China’s position as Indonesia’s second-largest investor has grown over recent years, with cumulative investments from 2019 to September 2024 reaching USD 34.19 billion. This surge has established China as a key player in Indonesia’s economic landscape, particularly in the manufacturing and industrial sectors.

Key investment areas include:

1. Basic Metal Industry: USD 14.39 billion (42%)
2. Transportation and Telecommunications: USD 7.98 billion (23%)
3. Chemicals and Pharmaceuticals: USD 3.18 billion (9%)
4. Electricity, Gas, and Water: USD 2.7 billion (8%)
5. Industrial Estates and Office Spaces: USD 2.21 billion (6%)

Regional Impact of Chinese Investments

China’s investments in Indonesia are geographically varied, with a focus on regions that offer strategic advantages. Central Sulawesi alone has absorbed USD 12.54 billion, accounting for 37% of the total Chinese investment. West Java and North Maluku are also notable recipients, representing 21% and 15% respectively, while Jakarta and Banten have each received 5% and 4%.

Such regional diversification supports equitable economic growth, aligning with Indonesia’s objective of reducing disparities among its provinces. The emphasis on non-Java regions reflects Indonesia’s commitment to promoting development in less-industrialized areas, creating jobs and infrastructure that directly benefit local communities.

Moving Forward: A Partnership for Sustainable Development

The results of the Indonesia-China Business Forum highlight the shared vision of sustainable growth that Indonesia and China strive for. By addressing areas such as healthcare, food security, and renewable energy, these investments contribute to a framework of resilience that aligns with global economic priorities.

This landmark forum stands as a testament to the strong foundation of trust and mutual respect between the two nations. Moving forward, the collaboration between Indonesia and China is poised to set new standards in bilateral relations, supporting an enduring and impactful partnership that will benefit both countries for decades to come.