INDONESIA STRENGTHENS ECONOMIC TIES WITH CHINA AND EXPANDS GLOBAL TRADE DEALS

By Mohd Iswandi Kasan Anuar

JAKARTA, March 19 (Bernama) -- Indonesia is deepening its economic partnership with China through a new initiative aimed at attracting industrial investment to the Batang Special Economic Zone (SEZ) in Central Java.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the project, part of the Two Countries Twin Parks (TCTP) programme, is expected to generate about 16 trillion rupiah or roughly US$1 billion in investment.

“The government continues to use SEZs to attract foreign investment, with several zones prioritised for development this year,” he stated in a statement following a meeting with President Prabowo Subianto on Tuesday.

The announcement comes ahead of Prabowo’s scheduled visit to the Batang SEZ on Thursday, Airlangga said, adding that the TCTP collaboration was discussed during his meeting with Chinese President Xi Jinping in Beijing last year.

Indonesia is also set to expand its Nongsa Digital Park in Batam, with several data centres planned for development in the coming months, he said.

Beyond its economic ties with China, Indonesia is advancing negotiations on several international trade agreements.

Airlangga explained that the country had submitted part of its initial memorandum to the Organisation for Economic Co-operation and Development (OECD), with a key meeting scheduled for June 2025 to determine the next steps in the accession process.

Indonesia is also preparing for a joint committee meeting with Russia in April to finalise a free trade agreement with the Eurasian Economic Union (EAEU), a bloc comprising Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

“A principle agreement is expected to be signed during Prabowo’s visit to Russia in June this year,” he said.

Meanwhile, Indonesia is advancing its efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact involving 12 economies across the Asia-Pacific region including Malaysia.

Membership in the agreement would provide Indonesia with greater access to export markets, including Mexico, Canada, and the UK, as well as tariff reductions upon entry, Airlangga added.

-- BERNAMA