Indonesia And China Sign Two Strategic MoUs Worth IDR 143 Trillion

JAKARTA - President of the Republic of Indonesia Prabowo Subianto together with the Prime Minister of the People's Republic of China (RRT) Li Qiang agreed on four memorandums of Understanding (MoU) and eight points of strategic cooperation.

Meanwhile, there are two strategic MoUs, namely the Memorandum on Strengthening Economic Cooperation in Industrial and Supply Chain and the Memorandum on Two Countries Twin Parks Cooperation Project which was agreed to be under the coordination of the Coordinating Ministry for Economic Affairs and signed by the Coordinating Minister for the Economy of the Republic of Indonesia Airlangga Hartarto and the Minister of Trade of RRT Wang Wentao.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the two memorandums are estimated to carry investment potential of IDR 143 trillion and create around 25.5 thousand jobs.

"The signing of these two memorandums is a follow-up to the agreement between the President of the Republic of Indonesia and the President of the RRT which was carried out at a previous bilateral meeting, as well as reflecting a joint commitment to encourage inclusive and sustainable economic growth," Airlangga said in his statement, Monday, May 26.

Regarding the Memorandum on Strengthening Economic Cooperation in Industrial and Supply Chain, it is designed to strengthen partnerships in industrial development and strengthening bilateral supply chains, focusing on strategic sectors such as manufacturing, logistics, high technology, as well as new and renewable energy.

Airlangga explained that this collaboration is expected to bring investment potential of approximately IDR 81.5 trillion and is projected to create around 15 thousand jobs in Indonesia.

In addition, the two countries agreed to encourage the participation of various types of business actors, including MSMEs, to be involved in economic cooperation in industry and supply chains.

Then it was also agreed to facilitate the development of industrial projects in key sectors, both within the Two Countries Twin Parks area such as Batang Yunhong, as well as in other agreed locations together as an expansion of the initial pilot project.

"This MoU not only shows a joint commitment between Indonesia and China in deepening economic cooperation, but also opens up ample space for the entry of high-quality investments, transformation of added value-based industries, and development of an integrated industrial area that is globally competitive," said Airlangga.

As a continuation of strengthening industrial cooperation, Airlangga said that Indonesia and China also signed a Memorandum on Two Countries Twin Parks Cooperation Project which is expected to be a model of two-way cooperation in the economic and trade sectors.

He conveyed that the two countries agreed to create a sustainable, long-term, and stable environment of economic and trade cooperation with the principles of equality and mutual benefit.

"The Two Countries Twin Parks project is a symbol of future partnerships, which not only connect industrial estates, but also bring together technology, human resources, and innovation to support inclusive and sustainable economic growth," he said.

Airlangga said that the two countries are also committed to providing policy and facilitation support for the smooth implementation of the project and increasing the exchange of information and monitoring of project implementation in order to evaluate its results and impacts on the development of industrial estates and increase two-way investment.

"Cooperation within the framework of the Two Countries Twin Parks will be implemented in several strategic industrial areas in Indonesia, including the Batang Integrated Industrial Zone, Wijayakusuma Industrial Estate in Semarang, and the Bintan Industrial Estate," he added.

Airlangga said that this initiative targets investment potential of approximately IDR 61.5 trillion and is expected to absorb around 10,500 workers in various industrial sectors.

He hopes that the signing of these two memorandums will strengthen Indonesia-Chingkok's bilateral relations and contribute significantly to the creation of added value in the industry, increase investment, and the welfare of the people of the two countries.

"This cooperation will be technically coordinated by the Coordinating Ministry for Economic Affairs together with the relevant Ministries and Institutions, then it will be followed up through the establishment of a Joint Committee, to ensure that the implementation is right on target and sustainable from each agreement," Airlangga concluded.