KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Highlights Indonesia’s Potential Role as a Communication Hub Amid US-China Geopolitical Tensions

Jakarta - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), Anindya Novyan Bakrie, emphasized the importance of preserving and strengthening the strategic partnership between Indonesia and China as the two nations commemorate the 75th anniversary of diplomatic relations.

His remarks were made during the Reception in Celebration of the 75th Anniversary of the Establishment of Diplomatic Relations Between the People’s Republic of China and the Republic of Indonesia, held at the Ritz-Carlton Hotel, Mega Kuningan, Jakarta, on Friday evening, April 17, 2025.

"First and foremost, we deeply appreciate the 75-year relationship between China and Indonesia. These two countries are truly strategic partners," said Anindya, known familiarly as Anin.

According to him, the relationship between Indonesia and China is not only robust economically but also spans political, historical, and cultural dimensions.

"From an economic perspective, China is our largest trading partner. But beyond that, we also share strong political ties, a long-standing historical relationship, and people-to-people exchanges such as student programs," he added.

Anin also highlighted China's remarkable transformation over the past several decades, particularly since the leadership of Deng Xiaoping (1978–1989), which has served as an inspiration for many developing countries, including Indonesia.

"China is a major country that has experienced extraordinary growth over the past 30 years, starting from the Deng Xiaoping era. We are here today to celebrate this remarkable relationship," Anin remarked.

Amid ongoing global geopolitical tensions, especially the trade conflict between the United States and China, Anin stressed Indonesia’s stance as a non-aligned nation that seeks to cooperate with all parties.

"China and the United States are two global powers. And as Indonesia is also a significant player, we can serve as a bridge for communication and mutually beneficial trade," he said.

He reiterated that both China and the U.S. are key trading partners for Indonesia, and it is important for the country to maintain a balanced and strategic relationship with both.

"It’s not just about balance—we want both partnerships to grow. We understand the demand shifts globally, and as investments and trade shift from other regions, both China and the U.S. will remain critical to Indonesia’s economy," he added.

Strengthening Indonesia-China Trade Relations

In terms of trade and investment, Anin noted that Indonesia–China economic ties have continued to strengthen, with Indonesia even recording trade surpluses in certain strategic sectors. One notable example is the rising export of stainless steel, driven by Chinese investments.

"Interestingly, over the past seven years, we’ve gone from being primarily importers to significantly increasing our exports, especially in stainless steel," Anin explained.

He credited this achievement to successful downstream industrialization and strong synergy between Chinese investors and domestic industries.

"This represents tremendous added value. It’s a downstreaming success story—starting with Chinese investment in stainless steel. Just imagine if this extends to batteries, alumina, aluminum, and more. In fact, we currently have a USD 2 billion trade surplus with China, thanks to effective downstream investment cooperation," he said.

Looking ahead, Anin shared Kadin Indonesia’s plan to conduct a working visit to China before the end of this year. The visit will focus on cities beyond Beijing and Shanghai, with the goal of studying best practices in industrialization, technology, healthcare, and education—including artificial intelligence (AI), which is now one of China's core strengths.

He also emphasized the importance of legal certainty in trade practices, especially concerning imports.

Anin underscored the need for imported goods to enter legally and comply with tax regulations, to ensure a level playing field for Indonesia’s micro, small, and medium enterprises (MSMEs).

"We’re not afraid of competition—Indonesian MSMEs are ready. But we want imports to be legal, properly registered, and taxed according to regulations," Anin concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry