Chinese Premier Commits $21.7 Billion in Fresh Investment to Strengthen Indonesia Ties


In a significant move to fortify their economic and political relationship, Chinese Premier Li Qiang announced a substantial investment of $21.7 billion in Indonesia during his visit. This commitment was made as part of Li’s visit to Jakarta for the Association of Southeast Asian Nations (ASEAN) summit, where he also held discussions with Indonesian leaders.

During the visit, President Joko Widodo welcomed Li at the historic Merdeka palace in Jakarta, engaging in conversations about expanding trade and investment between the two nations. Of particular interest was Indonesia’s ambitious plan to relocate its capital from the congested and polluted city of Jakarta on Java island to the emerging hub of Nusantara on Borneo island.

Foreign Minister Retno Marsudi later confirmed the significant Chinese investment pledge. This latest commitment builds upon a previous promise of $44.89 billion in investment made when President Widodo met Chinese President Xi Jinping in July. However, specific details regarding the newly announced investment have not been disclosed at this time.

President Widodo emphasized the importance of swiftly realizing these commitments, considering China as Indonesia’s largest trade and investment partner. In addition to urging prompt action on existing commitments, he encouraged China to explore investments in other sectors, including maritime and fisheries. This fresh infusion of capital further solidifies the strong economic ties between China and Indonesia. It underscores the importance of collaboration and partnership in the region as both countries seek to harness their potential for mutual growth and development. With the promise of new investments, the future holds opportunities for increased economic cooperation and advancement for both nations.

Sumann Senguptaa

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