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HOME > News > Indonesia's Economic Diplomacy in Southern China: Government and Private Sector Collaboration to Drive Strategic Synergy
Published: 04 February,2025 | Updated: 04 February,2025
Indonesia's Economic Diplomacy in Southern China: Government and Private Sector Collaboration to Drive Strategic Synergy

(AseanAll)  — The Consulate General of the Republic of Indonesia in Guangzhou organized the South China Economic Diplomacy Synergy Forum, which was attended by several Indonesian ministries and agencies from both Jakarta and China, including the Ministry of Agriculture, the Indonesian Embassy in Beijing, ITPC, IIPC, the Bank Indonesia Representative Office in Beijing, state-owned enterprises, PT. HSBC Indonesia, and representatives from the Indonesian business association in China, "INACHAM" (January 17,2025). The forum primarily discussed strengthening Indonesia’s economic diplomacy in Southern China through stakeholder synergy to enhance trade and investment.

In line with the commitment of President Prabowo Subianto's administration, Indonesia-China economic cooperation will be strengthened according to the comprehensive strategic partnership that has been established since 2013. China is one of Indonesia's main trade and investment partners. Southern China serves as a key gateway for Indonesia's exports to China. Around 25% of Indonesia's flagship products, such as coal, coffee, bird's nests, food and beverages, and tropical fruits, enter China through this region. Southern China, home to Chinese giants listed in the Fortune 500, such as Huawei, BYD, Tencent, and ZTE, serves as a source of investment for Indonesia in priority sectors such as new energy vehicles/EV, healthcare, biotechnology, digital technology, cloud computing, telecommunications, and more.

During the Forum, participants have identified a number of future strategies, including: (i) exploring investment cooperation in the agricultural sector to support food self-sufficiency as well as Indonesia's dairy and meat needs; (ii) promoting investment and trade collaboration, including expanding access for Indonesian MSME products; (iii) addressing export licensing barriers for Indonesian MSME products to China; and (iv) promoting the Local Currency Settlement (LCS) scheme for financing Indonesia-China investment and trade cooperation.

The event featured several experts from Dezan Shira Associates, HSBC Indonesia, UOB China, and Guangdong Brunp Recycling Technology Co., Ltd., who discussed the potential for Indonesia-China economic cooperation, strengthening the business presence of Chinese companies in Indonesia, collaboration opportunities, the use of LCS to facilitate investment and trade, and Indonesia’s advantages in global EV battery production.

As part of the synergy forum activities, the Consulate General of Indonesia in Guangzhou, in collaboration with HSBC Indonesia, also held a business networking luncheon to develop investment opportunities in Southern China. Approximately 50 entrepreneurs attended the event, including companies already established in Indonesia, such as BYD, BGI, GEM, Mindray, Brunp, Miniso, Guangzhou Metro, and Guangzhou Pharmacy, as well as businesses interested in establishing partnerships with Indonesia.