Prabowo Meets Wang Yi as China-Indonesia Ties Deepen
Indonesian President Prabowo Subianto met with Chinese Foreign Minister Wang Yi and Defense Minister Dong Jun at his official residence in Jakarta on August 21, during Wang’s first visit to the Indonesian capital in two years. The high-level meeting underscores the deepening strategic partnership between the two nations, with discussions covering economic cooperation, defense collaboration, and regional stability.
Strengthening Strategic Dialogue
Wang Yi’s four-day visit to Indonesia (August 19-22) marked a significant milestone in bilateral relations, coming as part of a broader regional tour that also included South Korea, as announced by the Chinese Foreign Ministry. On August 21, Wang and Indonesian Foreign Minister Sugiono co-chaired the first Comprehensive Strategic Dialogue (CSD) meeting between the two countries—a mechanism established when Sugiono visited Beijing in April 2025, according to Antara News.
The CSD was followed by the second meeting of the China-Indonesia Foreign and Defense Ministers’ “2+2” Dialogue Mechanism, held in Jakarta the same day. The “2+2” mechanism is China’s first ministerial-level dialogue of its kind globally, as reported by the Chinese Foreign Ministry.
During the meetings, both sides agreed to launch a China-Indonesia Five-Year Action Plan (2027-2030) for bilateral cooperation, establish a China-Indonesia Energy Forum, and deepen cooperation in critical minerals, artificial intelligence, manufacturing, and technology, as detailed by Antara News.
Economic Partnership and Investment
China remains one of Indonesia’s top three foreign investors, contributing US$3.9 billion in foreign direct investment during the first half of 2026, according to data from Indonesia’s Ministry of Investment cited by The Straits Times.
“China and Indonesia have complementary advantages and are trustworthy long-term, stable partners in Indonesia’s national development process,” Wang said during the visit, as reported by Xinhua News.
The economic discussions come amid concerns from Chinese investors about Indonesia’s business environment. In May, the China Chamber of Commerce in Indonesia sent a letter to Prabowo warning that abrupt policy shifts and alleged extortion by officials were undermining confidence in Southeast Asia’s largest economy, as The Straits Times reported.
Prabowo acknowledged these concerns during the meeting, welcoming more Chinese enterprises to invest in Indonesia and pledging to provide a favorable business environment while opposing “any ulterior-motivated provocation and speculation,” according to Xinhua.
Defense and Regional Security
Defense cooperation featured prominently in the talks. Chinese Defense Minister Dong Jun said the prospects for cooperation between the two militaries are “broad,” with cooperation “becoming higher in quality and more effective,” as reported by FMT/Reuters.
Both sides pledged to deepen defense cooperation including equipment technology, joint exercises, and personnel training, while also agreeing to work closely on minerals, energy, and technology, as reported by FMT/Reuters. Indonesian Defense Minister Sjafrie Sjamsoeddin called the enhanced cooperation “a progressive step taken in the era of building Indonesia’s defence power.”
On the South China Sea, both countries agreed to resume fisheries cooperation and accelerate joint development, while promoting the Code of Conduct (CoC). Indonesia reaffirmed its commitment to the One-China policy. Jakarta maintains its “free and active” foreign policy of non-alignment, seeking to balance ties with both Beijing and Washington, as noted by the China-Global South Project.
The discussions take place against a backdrop of heightened activity in the region. The Institute for the Study of War reported that satellite imagery shows China appears to have completed construction on an artificial island in Antelope Reef that could serve as its largest naval base in the South China Sea. Indonesia, which has its own disagreements with Beijing over maritime developments, has been measured in its remarks and does not see itself as party to wider territorial disputes involving China and the Philippines, Malaysia, and Vietnam.
Looking Ahead
Prabowo announced he plans to attend the APEC Leaders’ Meeting in Shenzhen, China, in November 2026, expressing anticipation for further strategic communication and coordination with Beijing. The visit comes as China seeks to strengthen regional ties ahead of the summit, with Wang also having met South Korean President Lee Jae Myung in Seoul earlier in the week.
As the world’s most populous Muslim-majority nation and China’s largest Southeast Asian trading partner deepen their engagement, analysts note that Indonesia faces a delicate balancing act. “It is indeed very difficult to be 100 per cent neutral,” Teuku Rezasyah, an international relations expert at President University, told The Straits Times. “Each country should be left feeling it has brought Indonesia into its orbit, even as Indonesia reaps the advantages of both relationships.”
With the Five-Year Action Plan set to take effect in 2027 and the APEC summit on the horizon, the China-Indonesia partnership appears poised for continued expansion—even as both nations navigate the complexities of regional geopolitics.