Jakarta, 20 October 2023 – President Joko “Jokowi” Widodo recently met with his Chinese counterpart Xi Jinping and as expected, Jakarta tried to pursue stronger investment ties with Beijing, particularly in the electric vehicle (EV) battery and petrochemicals sectors.
The two leaders had a bilateral meeting at Beijing’s Great Hall of the People.
“I conveyed the efforts to bolster investment partnership, particularly on EV batteries and automotive, spare parts factories, petrochemical refineries, steel production,” Jokowi posted on social media platform X on Tuesday night, commenting on his talks with Xi.
Indonesia has been trying to develop its domestic EV battery industry, among others, by luring foreign investors into the country. Chinese battery giant CATL has committed to invest $6 billion in a battery ecosystem project.
Indonesia aims to become the largest petrochemical producer in Asia. News outlet Reuters reported in April that East China-based Tongkun Group and Xingfeming Group were seeking Beijing’s nod to construct a refinery and petrochemical complex in North Kalimantan. The investment is set to be worth approximately $10 billion.
Jokowi also talked of the so-called “Two Countries, Twin Parks” economic corridor.
The “Two Countries, Twin Parks” combines two visions: Jokowi’s dream of turning Indonesia into a “global maritime fulcrum” and Xi’s brainchild “Belt and Road Initiative”. The latter sees China investing in infrastructure development projects across hundreds of countries.
“I call for a follow-up cooperation in developing the ‘Two Countries, Twin Parks’ economic corridor,” Jokowi said.
Government data showed Indonesia-China trade grew from almost $110 billion in 2021 to $133.6 billion the following year. Indonesian exports to China rose from $53.8 billion to $65.8 billion over the same period. Indonesia saw a $1.9 billion deficit in its trade with China last year.
Chinese investments in Indonesia totaled $8.2 billion in 2022. This puts China as Indonesia’s second-largest foreign investor, ranking just behind Singapore ($13.3 billion).