IndonesiaChina, Indonesia agree to boost military ties, work closer on minerals, energy and tech
China and Indonesia agree to boost military ties and work closer on minerals, energy, and technology. Indonesian President Prabowo Subianto advocates a "free and active" foreign policy of non-alignment.
Balancing Chinese industrial investment with non-aligned diplomacy
High-level diplomatic commitments to deepen bilateral cooperation across minerals, energy, and technology must now survive operational reality. President Prabowo Subianto aims to maintain a non-aligned foreign policy, but expanding military and industrial ties with Beijing requires delicate domestic execution. Regulators and state enterprises must structure these deals without triggering regulatory friction or security pushback from alternative trade partners.
The core friction will appear in project-level execution. Joint initiatives in critical minerals and technology require transparent frameworks for asset ownership, data governance, and technology transfer. If Jakarta allows Chinese state capital to dominate downstream processing or strategic infrastructure without clear safeguards, it risks compromising its neutral stance and complicating access to Western export markets.
Investment committees evaluating Indonesian industrial assets should prepare for faster project execution within Chinese-supported value chains, while pricing in elevated geopolitical compliance risks on cross-border ventures.