Deals worth about $10 billion – on food, new energy, technology and biotech – were signed by China and Indonesia at a business forum in Beijing on Sunday, according to local state media.
The forum followed talks on Saturday between Chinese President Xi Jinping and his Indonesian counterpart Prabowo Subianto, who was in China till Sunday (Nov 10).
Prabowo, who won Indonesia’s presidential election in February, is on his first country visit since taking office last month, underscoring Jakarta’s commitment to stronger strategic ties with Beijing.
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China and Indonesia are economic allies but the two countries have sparred verbally over disputed claims in the South China Sea.
‘Understanding on South China Sea’
A joint statement issued at the weekend during Prabowo’s visit said the two countries had “reached important common understanding on joint development in areas of overlapping claims”.
But on Monday Indonesia’s foreign ministry said its position was unchanged and the agreement would have no impact on its sovereign rights.
“Indonesia reiterates its position that those (Chinese) claims have no international legal basis,” it said. “The partnership does not impact sovereignty, sovereign rights or Indonesia’s jurisdiction in the North Natuna Sea.”
China’s foreign ministry said the clause “clarifies the political consensus and direction of cooperation between the two sides on joint development in the overlapping maritime areas claimed by the two countries.”
China’s spokesperson Lin Jian said Indonesia and China would further explore the content and mode of cooperation, adding there was a historical basis for China’s South China Sea claims and that consensus would benefit both.
China’s U-shaped line, based on its old maps, begins off central Vietnam and runs into waters off Indonesia’s Natuna islands, more than 1,000 km (620 miles) south of the island of Hainan.
It crosses into the Exclusive Economic Zones of Brunei, Malaysia, the Philippines and Vietnam, and is patrolled by an armada of the Chinese coast guard, which neighbours accuse of seeking to disrupt energy and fisheries activity.
Collaboration on NEVs, batteries, solar, tech
Meanwhile, in a joint statement after the leaders’ meeting, the countries agreed to enhance collaboration in sectors such as new energy vehicles, lithium batteries, photovoltaics, and the digital economy.
They also pledged to strengthen partnership on the global energy transition and jointly ensure the security of global mineral supply and industrial chains, the statement said.
Prabowo in a separate statement said he was optimistic close cooperation between the two countries would improve regional stability.
“We must set an example that in this era, cooperation not confrontation is the path to peace and prosperity,” Prabowo said, adding Indonesia was committed to supporting Chinese investors.
On Sunday, Chinese battery materials producer GEM signed a deal with PT Vale Indonesia to build a high-pressure acid leaching plant in Sulawesi, partly to secure nickel resources, a Shenzhen filing showed. Prabowo witnessed the signing.
The $1.4-billion High-Pressure Acid Leaching (HPAL) project in central Sulawesi will establish an intended net-zero processing site for nickel, producing at least 60,000 tonnes of contained nickel in Mixed Hydroxide Precipitate a year, according to the Jakarta Post, which said it includes development of a research centre and an ESG compound, plus a community development commitment and public facilities.
The nickel industry in Indonesia, the world’s largest producer of the metal, is dominated by Chinese companies including Tsingshan Holding Group and Zhejiang Huayou Cobalt.
In the tech sector, Indonesian tech firm GoTo Gojek Tokopedia signed agreements with China’s Tencent and Alibaba to develop cloud infrastructure and digital talent in Indonesia, Reuters reported earlier.
The two countries will introduce visa measures, including multi-entry long-term visas, and encourage more direct flights and destinations based on demand, the joint statement showed.
Prabowo is due to meet US President Joe Biden in Washington on Tuesday.
- Reuters with additional input by Jim Pollard
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