TEMPO.CO, Jakarta - The governments of Indonesia and China signed four important economic agreements on Sunday, May 25, 2025. This signing happened during Chinese Prime Minister Li Qiang's official visit to Indonesia. Indonesian President Prabowo Subianto saw the signing at the Merdeka Palace in Jakarta.
1. Memorandum of Understanding between Bank Indonesia and the People's Bank of China (PBOC)
The Governor of Bank Indonesia, Perry Warjiyo, and the Governor of PBOC, Pan Gongsheng, signed this MoU, reaffirming their joint commitment to strengthen cross-border payment connectivity and expand monetary cooperation in the regional financial market.
As reported by Antara, both countries' central banks updated their existing MoU to promote the use of local currencies in bilateral transactions. This cooperation aims to broaden the scope of transactions using the rupiah and yuan to include not only current transactions but also capital and financial transactions. In a joint press release, Bank Indonesia stated that this MoU strengthens the previous agreement signed on September 30, 2020.
2. Memorandum of Understanding between the National Economic Council and China's National Development and Reform Commission (NDRC)
This MoU signifies collaboration in economic development policies. Luhut Binsar Pandjaitan, Chair of the National Economic Council, and Zheng Shanjie, Chair of NDRC China, signed this agreement as an effort to enhance synergy in sustainable economic development planning between the two nations.
3. Memorandum of Understanding on Strengthening Industrial Cooperation and Supply Chains
This third MoU was signed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, and China's Minister of Commerce, Wang Wentao. The agreement includes strengthening cooperation in strategic industries including manufacturing, logistics, new energy, and high technology.
This collaboration is projected to attract investments totaling Rp81.5 trillion and create approximately 15,000 jobs. Small and Medium-sized Enterprises (SMEs) are also encouraged to participate in industrial development projects as part of the economic ecosystem of both countries.
"This MoU not only demonstrates the joint commitment of Indonesia and China in deepening economic cooperation but also opens up broad opportunities for high-quality investments, the transformation of value-added industrial bases, and the development of globally competitive integrated industrial areas," said Airlangga, as quoted from the official release of the Coordinating Ministry for Economic Affairs.
4. Memorandum of Understanding for the Two Countries Twin Parks Program
This agreement symbolizes cooperation between Indonesia and China through the development of twin industrial parks. This project will be implemented in Batang and Bintan in Indonesia, and in Fujian, China. "We'll schedule it in Batang, which spans 500 hectares and is designed to become the Sichuan version of Indonesia," said Airlangga at the Presidential Palace Complex, Central Jakarta, on Sunday, May 25, 2025.
The Indonesian government and China have agreed to designate Bintan, Riau Islands, as an industrial area. Meanwhile, in China, cooperation will be conducted in Fujian Province. "[We have] an industrial estate in Bintan. Then in China, it's in Fujian Province. So, there are three parks to collaborate," he explained.
This program is expected to attract investments of around Rp61.5 trillion and create over 10,500 jobs. Key development areas include the Batang Integrated Industrial Area, the Wijayakusuma Industrial Area in Semarang, and the Bintan Industrial Area.
Hendrik Yaputra contributed to the writing of this article.
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