China Strengthens Its Position in Southeast Asia with Agreement with Indonesia.

China and Indonesia Sign Cooperation and Investment Agreements

During the visit of Chinese Premier Li Qiang to Jakarta, China and Indonesia agreed to strengthen economic ties. In particular, both countries signed an investment agreement between their sovereign wealth funds. The central banks of both states signed a memorandum of understanding regarding the framework for bilateral operations in national currencies at a ceremony attended by Li Qiang and Indonesian President Prabowo Subianto on Sunday.

The countries also plan to enhance cooperation in tourism and agricultural exports. Furthermore, China Investment Corporation has signed an investment agreement with the Indonesian fund Danantara Indonesia, the details of which have not been made public. Representatives of both countries also signed memoranda of cooperation regarding economic and industrial policy, supply chain development, health care, and media.

Trade and investment by Chinese companies and other multinational corporations in ASEAN have significantly increased in recent years due to U.S. tariffs on China. As a result, there has been a growing desire in China to strengthen relations with Southeast Asia in the context of escalating trade tensions with Washington. In the future, Li Qiang also plans to attend the summit of Southeast Asian leaders in Malaysia.