The Belt and Road Initiative (BRI) will enter into its thirteenth year next year, 2026. The launch of the Maritime Silk Road of the 21st century in Indonesia has been dubbed as a masterpiece of statecraft, the greatest development project in modern history and a new model of bilateral and multilateral cooperation in the world to promote prosperity and peace in Indonesia. It seems that the BRI has boosted Indonesia’s development by financing critical infrastructure, including ports, railways and airports, to reduce investment gaps, enhance connectivity and unlock natural resources like nickel for EV batteries, fostering industrialization, boosting trade and creating jobs.
Obviously, BRI has also diversified cooperation in big data management, green transformation and finance, where the two countries share strong complementarities and vast potential for deeper collaboration during 2026 and beyond. Hence, both countries should cooperate in global financial governance. Indonesia has an ambitious agenda for renewable energy and green transition and one of the main focuses is solar panel cooperation with China. The policymakers of Indonesia are now working to define where to allocate this cooperation and resources so that they further align with Indonesia’s national energy agenda. Thus, further openness, modernization, digitalization, AI and qualitative development are the way forward.
The Chinese official figures confirm that it is one of Indonesia’s largest trading partners, with bilateral trade exceeding US$100 billion annually. The two countries are enhancing their partnership across several strategic sectors, including infrastructure, digital economy and green energy. China has become an important partner for Indonesia, with significant investments in key infrastructure projects such as the development of the new capital city of Indonesia, Nusantara and the high-speed rail project connecting Jakarta and Bandung (Kereta Cepat Jakarta Bandung), aligning with Indonesia’s vision for sustainable growth, as both countries seek to bolster economic ties while addressing environmental concerns.
The strengthening of cooperation between Indonesia and China was underscored during former President Joko Widodo’s visit to China. Even incumbent Indonesian President Prabowo Subianto expressed his deep appreciation for the investments and contributions of Chinese entrepreneurs in Indonesia, especially over the past decade. It appears that the inflow of Chinese investment will further bolster Indonesian infrastructure ambitions but also accelerate its transition to a digital and green economy, ensuring long-term economic resilience and sustainability. President Prabowo inked many new agreements with China in 2025 to deepen economic ties.
In May 2025, President Prabowo and Chinese Premier Li Qiang witnessed the signing of four MoUs on local currency settlements, economic policy cooperation, industrial supply chains and a “Two Countries, Twin Parks” program linking industrial zones, while also announcing cooperation in eight other areas including tourism, agriculture, health and media. As Southeast Asia’s largest economy, Indonesia offers vast economic potential and a crucial geostrategic link for regional connectivity. Its participation in BRI is mutually beneficial, providing Indonesia with capital and technology for development and giving China access to a major market and vital resources, underscoring Indonesia’s pivotal role in the initiative’s further expansion.
Indonesia offers several strategic advantages that align with BRI projects, including the world’s largest nickel reserves, crucial for EV batteries and significant tin, bauxite and copper reserves essential for industrial and technological applications, creating strong prospects for mutual cooperation in metals and minerals. With 437.4 GW of renewable energy potential, Indonesia also presents vast opportunities for green energy projects. Chinese investment in Indonesia has grown remarkably, from around US$280 million in 2013 to US$8.1 billion by the end of 2024 and over US$3.6 billion in just the first half of 2025.
Chinese companies have indeed made significant investments in Indonesia’s nickel smelting and battery industries, thereby fostering the development of EV battery supply chains. These investments are expected to expand into battery recycling and EV manufacturing. It is reported that three to four Chinese companies are in talks to establish EV and battery plants in Indonesia. The projects span battery production, data centres and consumer electronics, with an emphasis on technology transfer and human resource development for Indonesians. Comparative studies of the ongoing investments in the energy sector, particularly in the development of power plants and renewable energy projects, are critical for supporting Indonesia’s growing energy needs and sustainable development goals.
In summary, BRI is building industrial zones in various regions of Indonesia, such as the Indonesia Morowali Industrial Park and the Kalimantan Industrial Park Indonesia. Interestingly, for the Morowali Industrial Park, a Chinese investor is planning to construct an international green industrial park (“IGIP”). There are also expansion projects involving port infrastructure, particularly in regions like Sumatra (Kuala Tanjung Port) and Sulawesi (Bitung Port), all of which are strategically located and important to improve trade connectivity. It is estimated that the development of these ports will strengthen Indonesia’s position in global supply chains, particularly through increased exports of fish and minerals.
Key renewable energy projects in Indonesia include the Sungai Kayan and Batang Toru initiatives, part of the National Strategic Project. The government also expects a surge in digital economy investments, particularly in data centres and digital infrastructure expansion. Chinese companies are exploring waste-to-energy and grid projects in 2025, with Danantara tasked to streamline potential Chinese involvement. These initiatives are pivotal for Indonesia’s digital transformation, supporting the country’s broader development goals. Together, they contribute to realizing the “Golden Indonesia 2045 Vision,” a strategic plan aimed at positioning Indonesia as one of the world’s leading economies through sustainable energy, technology and innovation.
In digital infrastructure, Chinese tech investment is welcomed to expand Indonesia’s connectivity. Projects include data centres, telecom networks and smart city technology. Indonesia has seen rapid growth in its digital economy and China’s role in building 5G networks, e-commerce platforms and data hubs is expected to grow. Notably, Indonesia showcased a Chinese-funded Autonomous Rail Rapid Transit (“ART”) system in IKN in August 2024, hinting at future collaboration in smart urban transit.
