China, Indonesia Hold Rare 2+2 Ministerial Talks in Jakarta

Chinese and Indonesian foreign and defence ministers are set to meet in Jakarta on Friday for a rare "2+2" dialogue, with security, political, and economic issues dominating the agenda. The talks come as Jakarta seeks to balance its relationships with both Beijing and Washington amid ongoing trade tensions and maritime disputes in the South China Sea.

Chinese Foreign Minister Wang Yi is visiting Jakarta for the first time in two years. He will meet his Indonesian counterpart, Sugiono, and participate in the joint ministerial session. An Indonesian foreign ministry official said the foreign ministers' meeting will focus on economic issues as well as political relations, while a Chinese foreign ministry spokesperson said the discussions will cover political and security issues, defence cooperation, and the international and regional situation.

The meeting follows a rare joint naval exercise between the Chinese and Indonesian navies east of Taiwan last week, which drew criticism from Taipei. Indonesia's navy described the exercise as routine, noting it also conducts drills with Japan and the United States. However, defence analyst Curie Maharani said the location of the exercise allowed China to send a political signal, adding that Indonesia has learned how great powers use defence diplomacy as an instrument of influence projection.

Indonesia has its own disagreements with China over the South China Sea, which Beijing claims almost in its entirety. A maritime development deal signed during President Prabowo Subianto's 2024 visit to China mentioned "joint development in areas of overlapping claims," a phrase analysts saw as a shift from Jakarta's long-held stance as a non-claimant state. Indonesia later reiterated that it does not recognise China's claims. Maharani said Indonesia prefers to engage China through defence diplomacy rather than escalate tensions.

On the economic front, China remains a major investor in Indonesia, contributing $3.9 billion in foreign direct investment in the first half of 2026. However, Chinese companies have complained about stringent regulations, higher taxes, and a new nickel pricing formula. The China Chamber of Commerce in Indonesia has also alleged corruption and extortion by authorities. Key investors include battery maker Contemporary Amperex Technology Co and steel producer Tsingshan Group, both of which operate smelters in Indonesia. President Prabowo has acknowledged complaints about excessive permitting requirements and has called for deregulation to support investment.