Jakarta. President Joko “Jokowi” Widodo is about to wrap up his 10-year presidency with stronger economic ties between Indonesia and its trading partner China. 

Since taking the reins in 2014, Jokowi has grown closer ties with China’s President Xi Jinping, while also still maintaining Jakarta’s relations with the United States. Xi recently revealed that Jokowi flew to China 8 times and had met the Chinese leader 10 times over the past decade. 

But the frequent visits were not the only proof of the stronger ties between Indonesia and China -- two countries that Jokowi believes will become “economic superpowers” in the future. Government data showed that bilateral trade has soared over the years, particularly in Jokowi’s second term.

Jokowi officially assumed his second consecutive term in Oct. 2019. The government reported that Indonesia-China trade amounted to almost $73 billion that year, and slightly dropped to $71.4 billion in the Covid-hit 2020. The figures then jumped to nearly $110 billion in 2021, and eventually $133.6 billion the following year. Indonesia-China trade totaled $127.8 billion in 2023, data showed. The bilateral trade already hit $84.8 billion in January-August 2024.

Jokowi’s presidency saw Indonesia finally signing the world’s largest trade pact Regional Comprehensive Economic Partnership (RCEP) in 2020. Indonesia and China -- together with 13 other countries -- are part of this deal that aims to significantly cut import tariffs of the goods between the members. The RCEP came into effect in Indonesia early last year, while it already entered into force for China in 2022. ASEAN -- of which Indonesia is a member -- already has a free trade agreement with China, which is currently undergoing upgrades to include a green economy in its areas of cooperation. 

China has also become a major investor in Indonesia. Countless Chinese firms are also participating in building Indonesia’s electric vehicle (EV) ecosystem. As a case in point, Jokowi launched the manufacturing plant of Chinese anode battery material giant BTR a few months ago. The government recently revealed that China had invested approximately $5.8 billion in January-September 2024. This made China Indonesia’s third largest source of foreign direct investment that period.  

During a visit to Beijing in 2023, Jokowi told Xi that “Indonesia hopes China can be a strategic partner in the construction of the future capital Nusantara.” Fast forward to September 2024, China’s Delonix Group began the construction of Delonix Nusantara -- a Rp 500 billion mixed-use project that will include office and apartment towers, among others.

As Jokowi gets closer to retirement, China’s Xi talked to Indonesia’s outgoing leader to bid a farewell by phone. “China highly appreciates Joko Widodo's important contribution to the China-Indonesia friendship,” the Chinese government wrote on its official website, commenting on Xi’s call with Jokowi.

Xi also talked of the $7.3 billion Jakarta-Bandung High-Speed Railway -- popularly known as Whoosh -- during the phone conversation. The railway construction is part of the Belt and Road Initiative -- Xi’s brainchild that sees China making mammoth infrastructure investments across the globe. China Development Bank’s loans covered 75 percent of the costs needed to construct Whoosh. Xi told Jokowi that Beijing was “ready” to partner with Indonesia for a high-quality Belt and Road cooperation, as well as the “sustainable operations” of the high-speed train.

Jokowi has laid the foundation for his successor Prabowo Subianto to take the economic ties and beyond to greater heights. Prabowo has said that he wanted to adopt a good neighbor policy in his diplomacy, saying that “1,000 friends are too few, but one enemy is too many”. Xi also appears to be upbeat about the diplomatic ties with Jakarta under Prabowo, saying that Beijing believes Indonesia will continue its friendly policy towards China.