Navigating Global Supply Chain Restructuring, Hong Kong Reinforces Its Role as a Strategic Bridge between Indonesia and China

JAKARTA - In the midst of the continued turbulent geopolitical dynamics and the shifting map of the world's economic power, Indonesia is further strengthening its position as the epicenter of growth in Southeast Asia.

Speaking at the "HKU Indonesia Economic Forum: Co-Creating a New Landscape for China-Indonesia Enterprise Development", Associate Vice President (Global) HKU Prof. Heiwai Tang explained the strategic vision regarding Hong Kong's role in evolving into a vital link for capital, technology, and talent flows between mainland China and Indonesia.

Speaking to VOI.id on the sidelines of the forum, Prof. Tang said the world has undergone fundamental changes since the US-China trade war in 2018 and the COVID-19 pandemic crisis. The restructuring of the global supply chain is now leading to a more balanced and inclusive model.

"We are entering a new era where global supply chains are being restructured through the 'China Plus One' strategy. Companies are now trying to diversify their suppliers, not only from China, but also looking for sources from various countries of origin. In this context, Hong Kong, as the most international city in China, is right in the middle between mainland China and Southeast Asia," said Prof. Tang, as quoted (14/5).

According to him, the "going global" trend of Chinese companies provides a golden opportunity for Indonesia. As the largest economy in ASEAN with a population of nearly 300 million, Indonesia is the main destination for supply chain expansion and new consumer markets for Chinese corporations that want to go global through the Hong Kong gateway.

The visit of the business delegation led by HKU this time brought more than 20 top business leaders from mainland China.

Prof. Tang emphasized that this mission was not just a normal business visit, but the implementation of the 'bringing in and going out' strategy, bringing global knowledge to the region and helping Chinese business leaders understand foreign markets in depth.

During the four days in Jakarta, the delegates studied new industrial policies and the foreign direct investment (FDI) climate in Indonesia. Prof. Tang noted a significant increase in the confidence of Chinese investors in the stability and potential of priority sectors supported by the Indonesian government.

Responding to the world's perception of China, Prof. Tang reminded international business actors not to see China only as a developing country. In the last four decades, China has transformed into a home to technology giants such as Huawei, BYD, and Tencent.

"China today is a leader in AI and the digital economy. We must see it as a market with a large technology dividend. However, it is very important to understand the cultural and political differences between China and host countries of investments such as Indonesia. This journey aims to educate business leaders to identify dynamic opportunities while respecting these differences," said Prof. Tang.

In addition to Prof. Tang, this forum also presents perspectives from industry players. Chairman of Osda Solar Zhang Hongyan highlighted Indonesia's great potential in the transition to green energy. According to him, collaboration on solar cell manufacturing technology from China can accelerate Indonesia's net-zero emission target.

Meanwhile, Jack Sheng from YOTAI emphasized the importance of integrating energy storage systems and digital infrastructure. He saw that the efficiency that the Chinese industry has achieved in the past few decades can be adapted by Indonesian businesses to increase productivity in the global value chain.

Prof. Tang emphasized that academic institutions such as HKU have a unique value as an open platform for knowledge exchange and dialogue between people. In the midst of geopolitical volatility, universities play a role in building trust (trust building) which is the main foundation for cross-country business success.

The comprehensive economic forum held by the University of Hong Kong (HKU) at the Four Seasons Hotel Jakarta, Wednesday (13/5) focuses on strengthening economic, investment, and technology cooperation between Indonesia, China and Hong Kong.

In this forum, the main speaker or keynote speakers were the Special Staff of the Vice President of the Republic of Indonesia, Dr. Achmad Adhitya, who explained the direction of economic cooperation and investment opportunities from the perspective of the Indonesian government.

Minister Counsellor of the Chinese Embassy, Wang Liping, discussed strengthening bilateral relations and the vision of future collaboration between the two countries.

APINDO Chairman, Shinta Kamdani, who explained the business world's perspective on operational challenges and business opportunities for local entrepreneurs in the midst of international partnerships.

The forum was attended by executives from various sectors, HKU academics, as well as Chinese business delegations including representatives from the renewable energy industry, digital technology, and logistics.

This activity was also filled with a panel discussion involving economic experts to navigate the Asian geopolitical landscape, which is currently considered the most peaceful region and focuses on reducing poverty and inequality through economic growth.