- China and Indonesia held their first-ever “2+2” dialogue, enhancing diplomacy, trade, and security cooperation.
- Bilateral trade reached $127.1 billion in 2024, with plans to increase volume through BRI and green mineral projects.
- Both nations oppose unilateralism, calling for fair global trade and a stronger voice for the Global South.
- A maritime security agreement and joint push for peace in the South China Sea signal growing regional influence.
In a year defined by economic uncertainty, shifting alliances, and great power rivalry, China and Indonesia have emerged as two pillars of pragmatic diplomacy and strategic cooperation. Following their historic “2+2” ministerial dialogue held in Beijing this week, both countries reaffirmed a shared commitment to a fairer global order rooted in multilateralism, South-South solidarity, and economic integration.
The landmark talks between China’s Foreign Minister Wang Yi and Defence Minister Dong Jun, and their Indonesian counterparts, Foreign Minister Sugiono and Defence Minister Sjafrie Sjamsoeddin, marked the first such format between the two nations—underscoring the deepening of a comprehensive strategic partnership that could serve as a model for regional diplomacy in Southeast Asia.
A Growing Economic Powerhouse
At the heart of this relationship lies a thriving economic partnership. In 2024, bilateral trade between China and Indonesia reached a staggering $127.1 billion, solidifying China’s position as Indonesia’s largest trading partner for over a decade. Trade flows are dominated by commodities such as palm oil, coal, rubber, and mineral exports from Indonesia, while China exports electronics, machinery, and steel to its maritime neighbour.
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Yet both sides believe this trade volume, while impressive, is still far from its full potential.
“China and Indonesia are naturally complementary economies,” Wang Yi noted. “We must harness our respective advantages to push bilateral trade to new heights.”
To that end, Beijing and Jakarta agreed to deepen cooperation under the Belt and Road Initiative (BRI). Flagship projects such as the Jakarta-Bandung High-Speed Railway—launched in 2023—exemplify the potential of Chinese investment and Indonesian infrastructure development working in tandem. New cooperation documents are being finalized to accelerate collaboration in green minerals and critical resources, sectors that are vital for the global energy transition.
China also proposed enhancing financial integration, including local currency settlements and cross-border digital payment systems to reduce dependency on the US dollar, a move likely to further shield both economies from global market volatility.
Defying Unilateralism,Beijing Embracing Multilateralism
The timing of the “2+2” dialogue could not be more significant. With the US-China trade conflict simmering, Wang Yi used the joint press conference to deliver a powerful rebuke of unilateralism and protectionism.
“We should oppose any form of unilateralism and believe that the abuse of tariffs will seriously damage normal economic and trade exchanges among countries,” Wang stated. “We advocate inclusive economic globalisation and uphold the multilateral trading system with the WTO at its core.”
China calls on Indonesia to jointly oppose protectionism as US trade war deepens
His remarks reflect a broader alignment between China and Indonesia as champions of the Global South—a bloc that is increasingly vocal in resisting the fragmentation of global trade into competing spheres of influence.
Indonesia’s recent accession to the BRICS grouping—the first ASEAN nation to do so—has further cemented its status as a key geopolitical player. China has warmly welcomed this development, with both nations now poised to coordinate more closely within the BRICS, the G20, and the United Nations.
Wang Yi invoked the “Five Principles of Peaceful Coexistence” and the “Bandung Spirit”, the latter a reference to the 1955 Asian-African Conference in Indonesia that gave rise to the non-aligned movement.
“These are not just historical slogans,” Wang said. “They represent a timeless commitment to fairness, mutual respect, and peaceful development.”
Baijing, Jakarta Maritime Peace and Strategic Security
Security cooperation was another cornerstone of the dialogue. Although Indonesia is not a formal claimant in the South China Sea disputes, it has experienced occasional friction with China over overlapping claims near the Natuna Islands. The dialogue produced a new maritime security cooperation agreement between their coastguards and a renewed vow to speed up negotiations for a Code of Conduct in the South China Sea.
“We agree to jointly maintain peace and stability in the South China Sea,” Wang said. “We will set an example in maritime cooperation.”
Other key decisions included the establishment of a consultation mechanism on disarmament and arms control, and greater collaboration in combating transnational crimes, including cyber threats and telecom fraud.
In doing so, China and Indonesia are quietly crafting a new regional security architecture, one that emphasizes collaboration over confrontation—at a time when other regional players are drawing closer to US-led military frameworks.
Opportunities for the Region
The implications of the Beijing-Jakarta partnership are not confined to their borders. As two of Asia’s largest economies and leading voices in the Global South, their growing synergy could catalyze a wave of regional economic and political realignments.
For Southeast Asian nations, stronger China-Indonesia ties mean greater economic connectivity, particularly through BRI corridors that extend across ASEAN. Countries like Malaysia, Thailand, and Vietnam could see spillover benefits from enhanced supply chain integration and infrastructure development.
Moreover, Indonesia’s bridge-building role—maintaining robust ties with both China and the United States—offers a valuable diplomatic template for other middle powers navigating an era of strategic competition.
“Jakarta’s diplomacy is not about choosing sides,” noted an Indonesian foreign affairs analyst. “It’s about maximizing options, and China understands and respects that.”
China, for its part, is recalibrating its approach to Southeast Asia, moving from a purely transactional posture to one that includes dialogue-based diplomacy, strategic trust-building, and shared development visions.
The joint commitment to “inclusive globalization” could also pave the way for a Southern consensus on global trade rules, digital governance, and climate finance—a counter-narrative to the North-led models that dominate today’s institutions.
Beijing, Jakarta Moves Toward a Common Future
As global fault lines deepen, the China-Indonesia relationship offers a compelling case for how emerging powers can forge constructive, balanced, and forward-looking partnerships. Their collaboration is rooted in shared interests but guided by broader values—peaceful coexistence, economic justice, and mutual benefit.
The inaugural “2+2” dialogue may well go down as a turning point, not just in bilateral ties but in Asia’s evolving geopolitical landscape.
“In a world full of uncertainty, China and Indonesia stand as anchors of stability,” Wang Yi said. “Together, we will shape a future that belongs to all.”