From March 31 to April 2, Indonesian President-elect Subianto Prabowo visited China upon invitation。
Prabowo was paired with Gibulan, the eldest son of current Indonesian President Joko Widodo, to win Indonesia's presidential election in February。
Prabowo made China his first country visit after being elected president, which fully demonstrates the high level of China-Indonesia relations。
The two sides will take this visit as an opportunity to further consolidate traditional friendship, deepen all-round strategic cooperation, advance the alignment of development strategies between China and Indonesia, and set an example of common destiny, solidarity and coordination for common development as major developing countries, so as to inject more stability and positive energy into regional and global development。
During the campaign, Prabowo stressed that he would continue the policies of President Joko Widodo。During Joko's 10-year tenure, China's economic relations with Indonesia have grown by leaps and bounds。
Prabowo has shown openness to working with China。The importance of China's economy to Indonesia will figure heavily in Prabowo's calculations, and his approach to the world's second-largest economy will be guided more by pragmatism。
As representatives of major developing countries and emerging economies, China and Indonesia enjoy deep traditional friendship and close and in-depth cooperation。
In recent years, bilateral relations have maintained a strong momentum of development and entered a new stage of jointly building a community of shared future。
Recent economic and trade cooperation between China and Indonesia, the largest economy of ASEAN
Indonesia is the largest economy in ASEAN。人口2.7.6 billion (December 2022), the fourth most populous country in the world。
China and Indonesia are good neighbors, good friends and good partners。In recent years, China-Indonesia comprehensive strategic partnership has developed in depth, trade and investment have grown rapidly, and practical cooperation has been deepened, becoming a model of close cooperation between developing countries。
China and Indonesia have strong economic and trade complementarities
China and Indonesia have close economic and trade cooperation。
China is Indonesia's largest trading partner and second largest source of investment。
Indonesia is China's second largest investment destination in ASEAN。
Chinese companies have participated in the construction of Indonesia's roads, railways, ports and other strategic and major infrastructure projects, and the power plants built by Chinese companies in Indonesia account for a quarter of Indonesia's total power generation。
In the first two months of this year, Indonesia ranked among the top three trading partners in the trade between China and the ten ASEAN countries, and the trade between China and Indonesia increased by 5% year-on-year。
China and Indonesia are both signatories of the Regional Comprehensive Economic Partnership (RCEP), and the opening up and implementation of free trade in the region is bringing many new business opportunities。
Xu Ningning, chairman of the RCEP Industrial Cooperation Committee and China's chief ASEAN business expert, recently said that the industries of China and Indonesia are highly complementary。In "Indonesian Industry 4.In the "Road map 0", the food and beverage industry, the automobile industry, the electronics industry, the textile industry, and the chemical industry will receive priority development。It is recommended that Chinese enterprises understand the "Indonesian industry 4.The main content of the "Road Map 0" and seize the business opportunities brought by its implementation。
Xu said Indonesia has implemented preferential policies for investment in oil and gas, petrochemicals, organic and inorganic chemicals, pharmaceuticals, semiconductors, telecommunications, medical equipment, machinery, robots, shipping, aircraft, railways, power and infrastructure, which deserves the attention of Chinese enterprises。
Xu Ningning suggested that Chinese enterprises should do a feasibility study when entering Indonesia;Partners should be identified;We should take a long-term view to ensure product quality, project quality and service quality.The comfort level of each other's people should be taken into account。
Xu Ningning said that the RCEP Industrial Cooperation Committee is helping relevant industries and key enterprises in China and Indonesia to enhance cooperation。
The two countries are deepening all-round strategic cooperation
In 2022, China and Indonesia issued a Joint Statement, reaching new and important consensus on strengthening China-Indonesia comprehensive strategic partnership and building a China-Indonesia community of shared future。
In October 2023, the two countries issued a joint Statement on Deepening All-round Strategic Cooperation, in which they stated:
-- The two countries will further expand bilateral trade cooperation and investment scale on the basis of mutual benefit，We will support greater use of local currencies in economic and trade activities，We will improve trade facilitation，High-quality implementation of the Regional Comprehensive Economic Partnership Agreement，Achieve strong, balanced, inclusive and two-way sustainable trade，Jointly maintain the stability of industrial and supply chains。China supports the construction of Indonesia's new capital and the development of the North Kalimantan Industrial Park, and is happy to see local governments and companies leverage their strengths to participate in the cooperation。We will work together to promote the construction of "regional comprehensive Economic corridors" and "Two countries and two Parks", and carry out more "small but beautiful" projects to boost the economy and benefit the people。
-- The two countries will strengthen cooperation on sustainable development, promote industrial upgrading, jointly safeguard food security and accelerate energy transformation。China supports the construction of food bases in Indonesia and is willing to share its experience in poverty reduction and rural revitalization to jointly promote agricultural and rural modernization。The two sides will deepen the complementarity of resource endowment and production capacity, and create more high-quality cooperation projects, including deepening cooperation in mineral processing to enhance local value creation, as well as more high-quality cooperation in energy infrastructure and key industries of clean energy development, including solar photovoltaic power generation and new energy vehicle ecosystem projects。The two sides will also expand cooperation in high-tech and emerging industries such as smart cities, 5G and digital economy。China appreciates Indonesia's energy transition commitment to achieve net zero emissions by 2060 by accelerating renewable energy projects, and supports Chinese enterprises to cooperate with Indonesian partners in investment, science and technology, capacity building, research and development in the field of energy transition in accordance with commercial principles。
Recent developments in the Indonesian economy
Indonesia's gross domestic product (GDP) in 2023 will grow by 5.05%。At the beginning of 2024, the Indonesian government predicted that Indonesia's economic growth in 2024 would reach 5.2%。According to the IMF, Indonesia will grow by 5% between 2023 and 2025。
In 2023, the total amount of investment in Indonesia will increase by 17%.5%。Among them, the downstream industry investment accounts for 26% of the total investment.5%。
Indonesia's industry minister recently predicted that the growth of Indonesia's manufacturing industry will reach 5.8% target。
Source: RCEP Business Connect
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