Officials from Indonesia and China attend the inaugural Comprehensive Strategic Dialogue in Jakarta, on August 21. (Indonesian Ministry of Foreign Affairs)
Indonesian Foreign Minister Sugiono co-chaired an inaugural Comprehensive Strategic Dialogue (CSD) with his Chinese counterpart Wang Yi in Jakarta on August 21.
The high-level discussion emphasised a particular focus on deepening business and investment ties, with both sides’ deputy ministers of trade and economic portfolios involved to coordinate industrial, mineral and energy strategies. Besides economic development, healthcare, security and education were also touched upon.
Reportedly, one of the landmark bilateral projects funded by China as part of its Belt and Road Initiative, the Whoosh high-speed railway, is being assessed. Foreign Minister Sugiono underscored concerns regarding sluggish passenger numbers, which are driving up operational costs. Both parties concurred that they are “exploring alternatives to increase passenger volume”.
Addressing the following press conference, Foreign Minister Sugiono affirmed appreciation for China’s commitment to continuing its investment pledges in Indonesia. He further noted that “Minister Wang’s visit today demonstrates that we will continue to uphold this trust and sustain these efforts, reflecting the excellent cooperation that has been established between the Republic of Indonesia and the People’s Republic of China.”
Reiterating his counterpart, Foreign Minister Wang highlighted that “by leveraging our respective complementary strengths and deepening mutually beneficial cooperation, we will better assist Indonesia in transforming its resource advantages into drivers of development, thereby benefiting the Indonesian people and accelerating the country’s industrialisation.”
Subsequently, the Chinese Foreign Minister was hosted by Indonesian President Prabowo Subianto. The President signalled that Indonesia remains committed to enhancing the favourable business climate for Chinese companies.
Additionally, President Prabowo expressed that he looks forward to attending the Asia-Pacific Economic Cooperation (APEC) Summit in Shenzhen, China, this November.
What does this mean for businesses?
China remains one of the top three investors in Indonesia. Data from the Ministry of Investment reveals that in the first half of 2026, Chinese foreign direct investment (FDI) neared 4 billion US dollars. This latest visit signals a strong mutual desire to sustain capital inflows, particularly into mineral downstreaming and infrastructure. However, domestic volatility remains the primary hurdle for operations in Indonesia. Consequently, it is now a critical task for Jakarta to deliver policy certainty. To note, the China Chamber of Commerce in Indonesia (CCCI) addressed a formal letter to the Indonesian President in May, warning that regulatory unpredictability and corruption risks are undermining the confidence of international investors entering Southeast Asia’s largest market.
Kala Advisory helps investors turn diplomatic openings into targeted, risk-mitigated entry plans across Southeast Asia. Visit kala-advisory.com.
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