China and Indonesia have agreed to a series of deals worth $10 billion, focused on green energy and technology. The deals were signed at the Indonesia-China Business Forum in Beijing on November 10, 2024, following a meeting between Chinese President Xi Jinping and Indonesian President Prabowo Subianto.
This marked Subianto's first state visit since his election victory in February and hints at the premium Indonesia places on strengthening its relationship with China.
Green Energy Collaboration
An important aspect of these agreements is the commitment to green energy collaboration. The two nations have agreed to work together in several areas, including:
New Energy Vehicles
China and Indonesia will collaborate on the development and production of new energy vehicles. This is an important step, given the growing global demand for electric vehicles and the potential for Indonesia, with its abundant nickel reserves, to become a major player in the electric vehicle battery supply chain.
Lithium Batteries
The agreements also encompass collaboration in lithium battery technology which is a component of electric vehicles and renewable energy storage systems.
Photovoltaics
China and Indonesia will also cooperate in the development of photovoltaic technology, which is instrumental in converting sunlight into electricity.
These collaborations reflect a shared commitment to promoting the global energy transition and reducing reliance on fossil fuels.
Securing Mineral Supply Chains
The agreements also mentioned the importance of securing global mineral supply chains. The China-Indonesia deals have made both parties pledge to work together to ensure the stability of these chains, particularly for minerals crucial to the green energy transition, such as nickel. This is a strategic move, considering China's dominance in the Indonesian nickel industry and the growing global demand for these minerals.
Strengthening Economic and Technological Ties
Beyond green energy, the deals also encompass various other sectors, including:
Digital Technology
Indonesian tech firm GoTo Gojek Tokopedia has signed agreements with Chinese tech giants Tencent and Alibaba to develop cloud infrastructure and digital talent in Indonesia. This collaboration aims to boost Indonesia's digital economy and foster technological innovation.
Visa Measures and Direct Flights
The two countries have agreed to introduce measures to facilitate travel and trade, including multi-entry long-term visas and increased direct flights based on demand. These measures are intended to strengthen people-to-people exchanges and promote economic cooperation.
Final Thoughts
For China, this partnership supports its ambitious climate goals and advances its global influence in the green energy sector. With an eye on future technologies and sustainable development, both China and Indonesia are taking important steps toward a cleaner and more prosperous future, setting the stage for a mutually beneficial alliance that could transform the region.
In sum, the China-Indonesia deals represent a forward-thinking approach to economic and environmental challenges, reflecting a shared vision for a sustainable and resilient future. By focusing on green energy and new energy vehicles, the two nations are not only enhancing their own capabilities but also setting a precedent for international collaboration in tackling global issues.