Indonesia - China Strengthens Cooperation In The Belt And Road Initiative

JAKARTA - President Joko Widodo (Jokowi) paid a working visit to Beijing, China. During his visit, Jokowi also attended the opening of the 3rd Belt and Road Forum (BRF) on Wednesday, October 18.

In the forum, Indonesia and China agreed to increase cooperation in the Belt and Road Initiative (BRI) in the future. This collaboration is expected to provide benefits to both countries, both economically, socially and politically.

In his remarks, Jokowi appreciated the development of cooperation between Indonesia and China regarding BRI. According to him, in the midst of this uncertain global condition, he hopes that the cooperation will not be politicized and must be based on the principles of equal and mutually beneficial partnership.

"The use of a transparent funding system, absorption of local labor and utilization of domestic products is an important aspect in the sustainability of BRI projects. This cooperation must be ensured in the long term, in order to strengthen the economic foundation of partner countries. Not actually complicate fiscal conditions," said Jokowi.

Erick Thohir, who is also the Minister of SOEs, said that the Indonesia-China Business Forum had resulted in a cooperation agreement of IDR 204 trillion. Erick even said that there is still potential for cooperation of up to IDR 455 trillion with China.

"The Belt and Road Initiative Forum between Indonesia and China is a positive forum. Investment growth from China to Indonesia when viewed from 2013, is approximately US$280 million, but now it has reached US$8.6 billion. This means this is significant," he explained.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said that Chinese investment in Indonesia continues to increase every year. This investment has encouraged the development of special industries and economic zones in the country.

According to him, China's investment in Indonesia in the first semester of 2023 has passed from 3.8 billion US dollars. Therefore, he said that BRI's cooperation would continue to encourage industrial development and economic zones, especially in North Sumatra, North Kalimantan, Sulawesi, and Bali.

"This cooperation is needed by Indonesia, especially related to industrial development, technology development, innovation and human resource development," he said.

In this Indonesia-China Business Forum, the two countries have signed a total of 31 cooperation agreements worth IDR 204 trillion. The agreement covers various fields, including infrastructure, energy, manufacturing, and tourism.