Indonesia Seeks Quality Investment from China: Marsudi

Beijing, The Gulf Observer: Indonesian Foreign Minister Retno Marsudi has underscored Indonesia’s commitment to attracting “quality investment” from China, emphasizing the importance of investments that adhere to Environmental, Sustainability, and Governance (ESG) principles. Marsudi made these remarks during an interview with media on Friday, following her meeting with Chinese Foreign Minister Wang Yi at the 5th Indonesia-China Joint Commission for Bilateral Cooperation (JCBC) held at the Diaoyutai State Guesthouse in Beijing.

Marsudi highlighted the remarkable surge in Chinese investments in Indonesia over the past decade, citing data from the Investment Coordinating Board (BPKM). Chinese investments in Indonesia have reached USD7.43 billion by 2024, a nearly tenfold increase from USD800 million in 2014. This growth has positioned China as Indonesia’s second-largest investor, following Singapore, although the figure excludes investments from Hong Kong.

During the meeting, Minister Marsudi noted that Foreign Minister Wang Yi projected that the total value of bilateral investments could potentially reach USD55 billion, with China investing USD33 billion in Indonesia and Indonesia investing USD22 billion in China.

Marsudi also highlighted the significant increase in trade between Indonesia and China over the past decade. According to Chinese customs authority data, the total trade value between the two countries rose from USD63.66 billion in 2014, with a USD14.48 billion deficit on Indonesia’s side, to USD139.26 billion by 2023. Indonesia has successfully overcome the trade deficit and achieved a trade surplus for the past four years, reaching nearly USD9 billion by 2023.

In addition to trade and investment, the two foreign ministers discussed deepening cooperation in renewable energy, industry downstreaming, and the development of the electric vehicle ecosystem. These areas of collaboration are seen as vital to advancing the bilateral relationship between Indonesia and China and contributing to sustainable economic growth in both countries.