Chinese, Indonesian ministers meet to discuss security and economic issues

Chinese and Indonesian ministers convened in Jakarta on Friday to deliberate security, politics, and economic matters, as Jakarta grapples with balancing its relationships with both China and the United States amidst trade disputes and tensions in the South China Sea. Wang Yi, China's foreign minister, who visited Jakarta for the first time in two years, emphasized the significance of timely dialogue amidst global challenges, urging both nations to capitalize on the moment.

He cautioned that unilateral actions and hegemonic behavior undermine global cooperation and stability.

China's defence and foreign ministers met their Indonesian counterparts, setting the stage for a 2+2 meeting with the two countries' defence ministers later. Wang highlighted China's intent to elevate China-Indonesia cooperation to high levels, while his counterpart, Dong Jun, met a military honour guard upon arrival, noting the potential for military collaboration to enhance national security and thwart external threats.

The defence ministers anticipated increased defence activities, including joint exercises and personnel exchanges, as well as partnerships in the defence industry.

Last week, Taiwan, which China asserts as its own territory, protested a rare joint naval exercise between China and Indonesia east of Taiwan. While Indonesia viewed the exercise as routine, China used it to project political influence. Indonesian defence analyst Curie Maharani noted that the location allowed China to send a different political message, underscoring the value of this lesson for Indonesia.

Indonesia maintains a non-aligned foreign policy, as reiterated by President Prabowo Subianto, affirming its friendship for all countries, including China and the United States. Despite China's substantial investment in Indonesia, which contributed $3.9 billion in foreign direct investment during the first half of 2026, regulatory hurdles have caused friction.

Chinese companies operating in Indonesia called for more business-friendly policies, citing high taxes, stringent regulations, and alleged corruption and extortion by authorities. Key Chinese investors include EV battery giant Contemporary Amperex Technology and steelmaker Tsingshan Group, which operates smelters in Indonesia, home to the world's largest nickel reserves.