China and Indonesia Pledge Deeper Military and Economic Cooperation

China and Indonesia have agreed to strengthen military cooperation and deepen collaboration on minerals, energy, and technology, during a high-level visit by Chinese Foreign Minister Wang Yi and Defence Minister Dong Jun to Jakarta.

Speaking at the talks, Wang Yi said both countries should "seize the moment" to expand cooperation, noting that the current international situation is "intertwined and complex." He added that unilateralism and hegemonic acts have a serious impact on global cooperation and stability.

Dong Jun, who was received with a military honour guard, said the prospects for cooperation between the two militaries are broad and that such cooperation is becoming "higher in quality and more effective." His Indonesian counterpart, Sjafrie Sjamsoeddin, pledged increased defence activities, including joint exercises, officer exchanges, and partnerships in the defence industry.

The agreement comes shortly after a rare joint naval exercise between China and Indonesia east of Taiwan, which drew criticism from Taipei. Indonesia's navy said the exercise was routine, noting it also conducts drills with Japan and the United States. Defence analyst Curie Maharani said the location allowed China to signal a different political message, adding that Indonesia learned a valuable lesson about how great powers use defence diplomacy as an instrument of influence projection.

Beyond defence, the two countries pledged to cooperate across artificial intelligence, rail transport, green energy, satellites, and fisheries. Wang said both sides agreed to support each other's core interests and will work more closely on energy and mineral resources.

Indonesia, a $1.4 trillion G20 economy, is rich in nickel, tin, copper, gold, and bauxite, and is the world's largest exporter of palm oil and thermal coal. China is among its top buyers and a major investor, contributing $3.9 billion in foreign direct investment in the first half of 2026.

However, regulatory friction remains. In May, Chinese companies in Indonesia urged the government to adopt more business-friendly policies, citing higher taxes and a new nickel pricing formula that were driving up costs. A letter from the China Chamber of Commerce in Indonesia alleged "excessively stringent regulation, over-enforcement," and corruption and extortion by authorities.

Key Chinese investors include Contemporary Amperex Technology, the world's biggest EV battery maker, and steelmaker Tsingshan Group, which operates smelters in Indonesia.

Indonesian President Prabowo Subianto has maintained a "free and active" foreign policy of non-alignment, vowing to befriend all countries, including China and the United States, with which Jakarta's defence ties are also expanding.