In 2024, Indonesia-China relations reached a critical juncture, characterized by deepening cooperation and emerging tensions. While economic ties, security collaboration, and cultural diplomacy expanded, several challenges are complicating bilateral ties between the two countries.
Indonesia’s formal intention to join the BRICS grouping of emerging economies in 2024 made a significant headline. As a member alongside Brazil, Russia, India, China, and South Africa, Indonesia elevates its global diplomatic standing and strengthens its role in a multipolar world order.
This inclusion provides Indonesia with a platform to engage with major economies and explore potential avenues for economic and diplomatic collaboration.
However, Indonesia’s engagement with BRICS comes with the challenge of balancing its relationships within the grouping and maintaining regional autonomy.
While China remains a major player in the bloc, BRICS operates as a collective of diverse nations, each with its own priorities and influence.
For Indonesia, the key will be navigating these dynamics to ensure it leverages the opportunities within BRICS without appearing overly aligned with any single member’s ambitions, particularly in its broader regional strategy.
Trade
Economic interdependence between Indonesia and China is growing, but trade tensions have emerged, particularly in sectors like ceramics and textiles. Chinese ceramics are flooding the Indonesian market at significantly lower prices than locally produced goods, creating an uneven playing field.
The illegal importation of some substandard Chinese ceramics, which lack necessary labeling or certification, has compounded these issues. In response, Indonesia’s Ministry of Trade destroyed millions of illegal goods and imposed tariffs ranging from 100% to 200% on Chinese imports.
These tariffs, designed to protect domestic industries like textiles from cheap Chinese imports, have led to job losses and factory closures, as seen in Kusumahadi Santosa, one of Indonesia’s largest textile manufacturers.
While the tariffs aim to shield local businesses, critics argue they may harm Indonesia’s diplomatic relations with China and could invite retaliatory measures from Beijing.
Agriculture
Agriculture is a less-discussed yet important aspect of the Indonesia-China relationship. In 2024, Indonesia’s Ministry of Agriculture and China’s National Rice Research Institute (CNRRI) launched a partnership aimed at boosting rice production and ensuring food security in Indonesia.
This collaboration focuses on adopting modern farming techniques to enhance crop yields, improve planting efficiency, and reduce costs. Given Indonesia’s reliance on rice as a staple food, this partnership is crucial for addressing rising food demand and increasing self-sufficiency.
Electric Vehicles
China has also expanded its footprint in Indonesia’s electric vehicle (EV) sector, with companies like BYD and Wuling Motors setting up manufacturing plants.
These partnerships align with Indonesia’s push for sustainable transportation solutions, further solidifying China’s role in Indonesia’s industrial transformation.
Technology
In a significant development earlier this year, Indonesia announced its intention to enhance collaboration with China to advance its national artificial intelligence (AI) ecosystem.
In May 2024, Indonesian Minister of Communications and Information Technology Budi Arie Setiadi met with China’s Deputy Minister of Industry and Information Technology, Shan Zhongde, at the Geneva International Convention Center. The meeting focused on encouraging Chinese investment in Indonesia’s growing AI sector.
Environment
Environmental sustainability became a major focus of Indonesia-China cooperation in 2024. China’s advancements in renewable energy, particularly in solar, wind, and energy storage, are increasingly seen as key to supporting Indonesia’s green economy transition.
A notable step in 2024 was the establishment of the Indonesia-China Center for Ocean and Climate (ICCOC), which will focus on climate and ocean research, ecosystem monitoring, and technology transfer.
However, Chinese investments in mining and infrastructure have continued to raise concerns about their environmental impact, including deforestation, biodiversity loss, and labor issues.
While these projects contribute to economic growth, both Indonesia and China must work together to ensure that foreign investments align with sustainable development goals and adhere to stricter environmental and safety regulations.
Culture & Media
Cultural diplomacy continues to play a vital role in China’s strategy to strengthen ties with Indonesia, with significant initiatives aimed at fostering greater understanding between the two nations.
A key example in 2024 was the opening of the China Space at Jakarta’s Istiqlal Mosque, which sought to promote cultural exchange, particularly with Indonesia’s Muslim community.
Moreover, China continued to expand its media outreach in Indonesia, notably through forums like the China-Indonesia Media Forum, which took place in Beijing in early September 2024.
The forum, which followed its 2023 debut in Jakarta, brought together influential media figures, including China’s state-run Xinhua news agency and Indonesian outlets such as Antara National News Agency, Kumparan, and The Jakarta Post.
Indonesia’s Ambassador to China, Djauhari Oratmangun, framed the cooperation as not just an exchange of information but as a strategic tool for shaping policies and strengthening bilateral ties.
Tourism was also a significant aspect of Indonesia-China relations. With the rise in direct flights, the number of Chinese tourists visiting Indonesia grew, reaching 126,100 in July 2024, according to the latest report from the Central Statistics Agency (BPS). This marked the highest figure since February 2020.
South China Sea
Security cooperation gained prominence in Indonesia-China relations in 2024. The inaugural Senior Officials’ Meeting (2+2 SOM) in Jakarta laid the groundwork for deeper collaboration on military and counterterrorism issues, including intelligence sharing and cybersecurity.
The South China Sea continues to be a sensitive and complex issue in Indonesia-China relations. While Indonesia is not a direct claimant in territorial disputes, its exclusive economic zone (EEZ) in the Natuna Sea overlaps with China’s extensive claims, making Indonesia an important player in regional maritime security.
A major development occurred in November 2024, during President Prabowo Subianto’s visit to Beijing, when Indonesia and China issued a joint statement committing to development in disputed areas of the South China Sea, particularly around the Natuna Islands.
This raised concerns over Indonesia’s stance on China’s territorial claims, especially the “ten-dash line,” which overlaps with Indonesia’s exclusive economic zone (EEZ).
The proposed joint development was seen as a potential shift in Indonesia’s position, suggesting tacit acknowledgment of China’s territorial ambitions and raising risks to its sovereignty.
However, Indonesia quickly clarified that it does not recognize the ten-dash line.
Foreign Minister Sugiono later confirmed that no joint development areas had been identified and reassured that Indonesia’s position on the issue remained unchanged.
Overall, in 2024, Indonesia-China relations expanded across economic, cultural, and security dimensions, but they were also marked by growing complexities.
In 2025, these ties are expected to remain strong, with new investments being signed and implemented, increased cooperation in the renewable energy sector, and strengthened security collaboration.
China’s commitment to supporting President Prabowo’s free meal program further indicates that ties between the two countries under his leadership will continue to grow.
However, contentious issues will persist. Disputes in the South China Sea, the environmental impacts of Chinese investments, and labor conflicts will continue to test the relationship.
The critical question is how President Prabowo will balance his partnership with China to fulfill his ambitious economic promises while addressing the complex challenges that define this dynamic but increasingly intricate bilateral relationship.
Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia Desk at the Center of Economic and Law Studies (CELIOS).
