China's Premier Li Qiang Visits Indonesia to Strengthen Trade Ties Amid Global Headwinds

Strategic Insights -

Chinese Premier Li Qiang has arrived in Indonesia for a three-day visit, marking the first stop of his first overseas trip this year. Li's visit aims to expand trade and investment opportunities between the two countries, amidst the US-led global trade war and economic challenges. During his visit, Li emphasized China's commitment to cooperation and solidarity, citing the 70th anniversary of the Non-Aligned Movement, which was initiated in Indonesia. Indonesia's President Prabowo Subianto welcomed Li and expressed gratitude for China's economic support, inviting Chinese businesspeople to invest more in the country.

Key Takeaways:

  • Premier Li Qiang's visit marks the first stop of his first overseas trip this year, with a focus on strengthening trade and investment ties between China and Indonesia.
  • Indonesia and China have a long-standing relationship, with the two countries being member states of the Group 20 major developing countries and emerging economies and of BRICS.
  • China's economy has achieved rapid growth this year despite external challenges, with Li emphasizing the need for countries to seek common ground and resolve differences through dialogue and peaceful coexistence.
  • Two-way trade between China and Indonesia exceeded $147.8 billion last year, growing by 6.1%, with China being Indonesia's largest trading partner for nine consecutive years.
  • Indonesia wants a larger role in supplying nickel and other raw materials to China's fast-growing electric car makers, with the Belt and Road cooperation program seeing substantive progress.
  • Li brought 60 prominent Chinese businesspeople for his address at the Indonesia-China Business Reception, where he highlighted the importance of cooperation and solidarity.
  • Subianto expressed gratitude to the Chinese government and its companies for their economic support, creating jobs, transferring technology, and building trust among Indonesian businesses.

Statistics:

  • Two-way trade between China and Indonesia exceeded $147.8 billion last year, growing by 6.1%.
  • China has been Indonesia's largest trading partner for nine consecutive years.
  • Indonesia wants a larger role in supplying nickel and other raw materials to China's fast-growing electric car makers.
  • The Belt and Road cooperation program has seen substantive progress, including nickel smelting plants and the commercial service of Southeast Asia's first high-speed railway, Whoosh.
  • Whoosh has been operating since October 2023, carrying nearly 10 million passengers.

Sources:

  • Associated Press
  • Transcript of Premier Li Qiang's address at the Indonesia-China Business Reception
  • Statement by Indonesia's President Prabowo Subianto at the Merdeka Palace ceremony.