Indonesia-China Strengthen Cooperation: Build Twin Industrial Zones in Batang, Bintan, and Fujian
Jakarta – Bilateral relations between Indonesia and the People’s Republic of China (PRC) have again recorded a strategic step in economic cooperation with the agreement to build twin industrial zones in Batang (Central Java), Bintan (Riau Islands), and Fujian (China).
This initiative is one of the flagship projects in strengthening mutually beneficial economic partnerships between the two countries.
Coordinating Minister for Economic Affairs, Airlangga Hartarto explained the memorandum of understanding (MoU) signed by the Indonesian Government and the Chinese Government at the Merdeka Palace, Jakarta, regarding the partnership of Indonesian industrial zones, especially in Batang, Central Java, and Bintan, Riau Islands.
The MoU signed by Coordinating Minister Airlangga, representing the Indonesian Government, and representatives from the Chinese Ministry of Trade and the Fujian Provincial Government contains a commitment to extend the cooperation between the two countries’ industrial zones (TCTP).
“The Two Countries, Twin Parks (TCTP) that we have scheduled is in Batang, which is 500 hectares wide, and is being pushed to become Indonesia’s Sichuan. Then, there is another one in Bintan, in the industrial estate in Bintan. Then, the one in China is in Fujian Province. So, there are three parks (industrial areas, ed) that are being collaborated on,” said Coordinating Minister Airlangga.
The MoU signing ceremony took place during the official visit of Chinese Prime Minister Li Qiang at the Merdeka Palace, Jakarta. The MoU signing process was witnessed by President Prabowo and PM Li.
TCTP is an initiative initiated by the Chinese Government to connect China’s industrial areas with industrial areas of partner countries, including Indonesia. For Indonesia, the cooperation is expected to bring in investment.
“Of course investment will come in, and there is also a commitment to strengthen the supply chain of both countries,” said Airlangga.
Airlangga said that for the cooperation in Batang, the investment value is at least 3 billion US dollars. Meanwhile, in Bintan, the investment value is still under discussion.
“In the technical MoU, we have also discussed how many people can be employed. In Batang, we hope that more than 100,000 people can be employed there,” said Airlangga.
President Prabowo and PM Li Qiang witnessed the signing of four MoUs and eight cooperation documents between Indonesia and China.
The four MoUs signed in front of President Prabowo and PM Li include the MoU on the establishment of a cooperation framework to encourage bilateral transactions in local currencies between Bank Indonesia and the People’s Bank of China.
Then the MoU on cooperation in economic development policies between the National Economic Council and the National Development and Reform Commission of China, the MoU on strengthening economic cooperation in the industrial sector and supply chains between the Coordinating Ministry for Economic Affairs of the Republic of Indonesia and the Ministry of Trade of China.
Finally, the MoU on the Two Countries, Two Parks cooperation between the Coordinating Ministry for Economic Affairs with the Ministry of Trade of China and the Fujian Provincial Government.
This step also marks a new chapter in Indonesia-China strategic cooperation which not only focuses on infrastructure development but also on strengthening the industrial sector that is oriented towards the long term and sustainability.
