12 Indonesia–China Deals Signal Deeper Strategic Partnership, from Local Currency Trade to Frozen Durian Exports
Key Takeaways
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JAKARTA, investortrust.id — Indonesia and China signed 12 strategic memoranda of understanding (MoUs) on Sunday, May 25, 2025, in Jakarta, marking a major step in strengthening bilateral ties across key sectors including industry, finance, health, tourism, and media.
President Prabowo Subianto and Chinese Premier Li Qiang presided over the signing ceremony at the Merdeka Palace, underscoring the countries' growing strategic partnership. The agreements came following a bilateral meeting between the two leaders, held during Premier Li’s official visit to Indonesia.
One of the most consequential deals was between Indonesia’s Coordinating Ministry for Economic Affairs and China’s Ministry of Commerce, aimed at bolstering industrial cooperation and strengthening supply chains. Another trilateral agreement was signed among the Coordinating Ministry, China’s Commerce Ministry, and the provincial government of Fujian to develop a “two countries, twin parks” industrial collaboration program.
In the financial sector, Bank Indonesia and the People’s Bank of China agreed to establish a local currency transaction framework, enabling bilateral trade settlements in rupiah and yuan—part of a broader push for de-dollarization and greater monetary cooperation in the region.
Another pivotal MoU involved Indonesia’s National Economic Council (DEN) and the National Development and Reform Commission of China, setting out a joint approach to economic development policy.
While four of the MoUs were signed in front of the two leaders, eight others were announced and formalized separately. These included:
• a tourism cooperation agreement between Indonesia’s Ministry of Tourism and China’s Ministry of Culture and Tourism,
• a newly approved quarantine protocol for Indonesian frozen durian exports to China,
• two health-related agreements between Indonesia’s Ministry of Health and Chinese health authorities, focusing on traditional Chinese medicine and tuberculosis control,
• two media MoUs involving Indonesia’s national news agency Antara and Chinese state media organizations—China Media Group and Xinhua News Agency,
• a cooperation agreement on investment between Danantara, Indonesia’s sovereign wealth fund, and China Investment Corporation (CIC),
• and strengthening of business-to-business ties through new commitments between the Indonesian Chamber of Commerce and Industry (Kadin) and the China Chamber of Commerce in Indonesia.
President Prabowo and Premier Li welcomed the agreements as a tangible milestone in Indonesia–China relations, with the potential to generate long-term benefits for both economies.
Premier Li’s visit to Jakarta forms part of a broader diplomatic agenda aimed at enhancing cross-sectoral collaboration under the banner of a "new era of partnership"—one that both leaders described as more productive, inclusive, and sustainable.